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All Forum Posts by: Joe Sera

Joe Sera has started 1 posts and replied 26 times.

Post: Help for 1031 to DST or NNN

Joe Sera
Tax & Financial Services
Professional Services
Posted
  • Maryland
  • Posts 28
  • Votes 15

Hi Jasmina,

I can help, feel free to shoot me a message if you want to chat more. Thanks!

Post: Any article about all 1031DST Sponsors and rate their qualities?

Joe Sera
Tax & Financial Services
Professional Services
Posted
  • Maryland
  • Posts 28
  • Votes 15

@Stephen H. You are right about rates being lower than a few years ago.  In the end DSTs own real estate and the top sponsors have to pay more today than a few years ago.

If you want a list of the top sponsors I would look to get a copy of the MOUNTAIN DELL report. They have a comprehensive list that includes even the smallest of sponsors. What they don’t include is a lot of off-market private deals.

Post: 1031 using 1031crowdfunding.com

Joe Sera
Tax & Financial Services
Professional Services
Posted
  • Maryland
  • Posts 28
  • Votes 15

@Vishal Taylor you can have your cake and eat it too through the use of a-- 721 UPREIT.


A number of the top REITS allow you to initially 1031 into a DST on a temporary basis and after 2 years the REIT absorbs the DST and converts your ownership into shares in the REIT.

Post: UPREIT any personal experience?

Joe Sera
Tax & Financial Services
Professional Services
Posted
  • Maryland
  • Posts 28
  • Votes 15
Originally posted by @Glenna Wood:

Excellent info! Thanks, @Dave Foster and @Joe Sera

Happy to help...especially when it's a fellow Marylander.

Post: UPREIT any personal experience?

Joe Sera
Tax & Financial Services
Professional Services
Posted
  • Maryland
  • Posts 28
  • Votes 15

@Christopher Smith there are many...but in my opinion really only three companies out there that offer the ability to 721 into a large and diversified REIT that i'd feel comfortable with. Of the three options we really like two of them. I don't want to name the REIT we dislike, but if you want to talk more about this offline shoot me a DM.

As far as investor profile, it really comes down to someone's individual circumstances and what they're trying to achieve. 

Post: UPREIT any personal experience?

Joe Sera
Tax & Financial Services
Professional Services
Posted
  • Maryland
  • Posts 28
  • Votes 15

@Christopher Smith when you 721 into the UPREIT you receive Operating Partnership Units (OP Units). Converting OP units to shares of the REIT creates a taxable event.

Post: UPREIT any personal experience?

Joe Sera
Tax & Financial Services
Professional Services
Posted
  • Maryland
  • Posts 28
  • Votes 15

@Christopher Smith @glenna

The 721 space has changed dramatically in the last year. A number of the top REITS have found a technique that lets the investor initially 1031 into a DST on a temporary basis and after 2 years the REIT absorbs the DST and the investor receives the equivalent of shares in the REIT which makes the investment liquid. It's a game changer. Only downside is that you can never 1031 the 721 proceeds again. If you sell shares you pay taxes. However, you still get the same step up in basis upon your passing. As more top REITS enter the space the investor will be able to build a diversified portfolio of REITS and not worry that any one REIT will turn into a dog.

Best part is that unlike the old UPREIT that triggered a tax if the initial property is sold, today’s structure is immune.

Post: Can DSTs or TIC do a 1031 exchange out of the DSTS or TIC and b

Joe Sera
Tax & Financial Services
Professional Services
Posted
  • Maryland
  • Posts 28
  • Votes 15

@Mike Le yes you can.

Post: 1031 Delaware Statutory Trust - Investing in DST Real Estate

Joe Sera
Tax & Financial Services
Professional Services
Posted
  • Maryland
  • Posts 28
  • Votes 15

@Jeff S. good luck on the Oregon property. Keep the DST in mind if you need a backup ID property. Also if for some reason these two options don't end up working, know that you can still invest the proceeds into a QOZ fund to defer the capital gain tax.

Post: Anyone have experience with Delaware Statutory Trust (DST)?

Joe Sera
Tax & Financial Services
Professional Services
Posted
  • Maryland
  • Posts 28
  • Votes 15

@Kevin Howard you're probably not a great candidate for a DST.

We advise clients on DSTs and the typical profile of a DST investor is someone that's older/looking to retire and go from active ownership to passive investor.

Your client is right though, using a DST as a backup is a good option. Also if you don't need your capital to immediately go to work for you, then another good option and/or backup plan for you to look into is a QOZ fund.

In terms of finding a quality NNN, how much of the $1.3m is equity vs debt? Finding a quality NNN that's sub $2M is going to be tough.