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All Forum Posts by: Lan Bak

Lan Bak has started 2 posts and replied 14 times.

Post: Flock Homes - 721 Exchange

Lan BakPosted
  • Posts 14
  • Votes 6

@Nuatu Tseggai - Curious to know how your flock shares have been performing over the past 2 years and what the current dividend rate is ? Would you be willing to share here ? Thanks !

Post: Pure DST vs. DST-721 UPREITs

Lan BakPosted
  • Posts 14
  • Votes 6

Thanks @Norman Schultz for circling back with an update. Good luck with the DST.

I actually ended up paying the taxes since the property I sold did not have a lot of capital gains. Still keeping an eye on the DST/721 options for my second rental.

Post: Pure DST vs. DST-721 UPREITs

Lan BakPosted
  • Posts 14
  • Votes 6

@Amit M. This is a great question.

@Jon Taylor - In a similar vein, I am guessing most recent DST's have loaded up/valued their portfolio at the current/recent peak. What are the risks when valuations start coming down ?

Also, this "
Did they return AT least my entire original investment (regardless of
upfront fees). If that is your goal (which it should be) then the
percentage of DSTs that have met that expectation is far lower than 95%."

doesn't bode well.

Should the expectation with the DST's then be just capital preservation with guaranteed yield after all fees (even then, most don't deliver) ?

Post: Pure DST vs. DST-721 UPREITs

Lan BakPosted
  • Posts 14
  • Votes 6

Didn't most of those rental to primary residence conversion loopholes get closed over the years ?

rental-to-primary

Post: Pure DST vs. DST-721 UPREITs

Lan BakPosted
  • Posts 14
  • Votes 6

Very interesting article @Carlos Ptriawan

I guess an analogy is, if DST's are mutual funds then 721-DST's are index funds.

Wonder what the ongoing annual fees for both DST's and 721-DST's are ?

On this note, what about mortgage balance that is paid off as part of the sale ?

I am assuming that need not be reinvested, so net cash = selling price - any mortgage paid off, right ?

Post: Pure DST vs. DST-721 UPREITs

Lan BakPosted
  • Posts 14
  • Votes 6

@Jon Taylor - Curious to know what the average ongoing and/or exit fees are for DST's and the DST-721's

Can you offset depr. recapture with carry forward losses on sale of a Rental property for a Non Real estate professional ?

Example (putting non depr. land value aside) :

Purchase price - $100,000

Selling Price - $125,000

Allowed Depr/year - $3636

Property is sold after 10 years with a passive carry forward loss of $30000

Capital gain based on adjusted basis - $61360 (125000 - 63640)

Actual capital gain/loss is -$5000 (61360 - 36360 - 30000)  [No capital gain tax I assume]

Depr recapture tax is owed on $36360 or on $31360 (36360 - 5000) ?

or in other words, can the carry forward loss be fully used or the $5000 passive loss needs to be carried over ?

Thanks in advance !

Post: Flock Homes - 721 Exchange

Lan BakPosted
  • Posts 14
  • Votes 6

IIRC, Zillow was just flipping homes similar to opendoor and other ibuyers.

While Flock is actually implementing the IRS 721 section directly
- Exchange your rental property into a (UP)REIT .

This bypasses the whole DST to REIT transition since Flock purchases the property and puts it in their one REIT. I am guessing they can of course sell it off subsequently if it underperforms.

The proof of the pudding is in their sustained payouts and capital appreciation. Not much history as of now.