All Forum Posts by: Kyle Ball

@Cory King, thanks for the input!  And I see you are an agent in Knoxville.  My family and I are fairly new to the area so all but one of our rentals are in other states.  I am still interested in Knoxville area rentals, in part to have some options for our kiddos once they move out and because I really believe in this market and state and think there is a lot of upside to investing here long term.  We should connect sometime!

@Brandon Bruckman, I heard back from my CPA and she confirmed that I can pull up to my basis out of the REIT by selling REIT shares/units without incurring any capital gains taxes since it is considered a return of capital (ROC). My basis would then be decreased by the $ amount I sell.

@Brandon Bruckman, that is interesting. I have been told by one very reputable RIA and a separate 1031 company that after I have been in the REIT for at least 1 year that I can pull up to my original basis out of the REIT without triggering any capital gains tax. I will have to dig deeper on that. Thanks for the heads up!

@Dave Foster, @Ashish Acharya,@Brandon Bruckman, Thank you for your input!! So much to consider here and really the only thing that does give me pause is my really long time horizon given that I am only 41. Who knows where these REIT's/Sponsors will be several decades from now, or if they will even keep these specific REIT funds open for that long, forcing us into a taxable event. But if I am understanding correctly I can pull my basis out of the REIT without paying capital gains, so to Brandon's point, I may consider pulling a % of my basis out each year to re-invest elsewhere and hopefully keep most of my taxable shelter in place. I may also do a couple traditional DST's to keep some funds available for sheltered reinvestment just in case.

I am an experienced RE investor but on the younger side at only 41 years old. I have been doing a ton of research and just completed my first 1031 exchange into a DST-721 UPREIT. I am considering liquidating most of my portfolio of 35 rental units and exchanging into a handful of DST-721 UPREITS for a very long term hold. My current return on equity across my portfolio is around a pitiful 3.5% since our equity has grown so much and we have paid off almost all of our debt. Given that, we would get an immediate boost in cash flow which will also be very predictable month to month and save myself a bunch of time managing my property managers and dealing with the ups an downs of active real estate. The REIT's would bring a lot of diversification across several RE classes and both US and global RE markets. I see very little downside in going all in on this strategy. I know the typical drawbacks of not being able to exchange any further once my DST(s) are brought into the REIT but I am fine with that and have no more desire to actively invest in real estate. I have read, watched and listened to most every piece of content I could find on this topic and I am just not seeing much downside and am seeing a TON of upside. Is there any reason you would not consider going on all on this DST to 721 UPREIT strategy?