All Forum Posts by: Account Closed

@Shannon Phillips have you ever considered a Delaware Statutory Trust (DST)? From what you said that you wanted it may be a good fit. DSTs allow for investors to 1031 exchange into professionally managed portfolios that are diversified across asset class/sector/geographic, while being a passive owner and earning tax advantage income. It's a very flexible strategy that you may have not heard of before. Happy to explain in more detail if this sounds interesting to you. Best

@Steve Hartkopf and @Greg Scott

in regards to the estate planning aspect of real estate.. expanding on Dave's mention of DSTs.  1031 exchanging your properties into Delaware Statutory Trusts real estate portfolios allow you to effectively retire from active management, diversify into professionally managed portfolios across asset class/sector/geographic, have limited/passive ownership, and collect tax advantage income that gets a step-up in cost basis at passing eliminating any capital gains tax.  The strategy works well for retiring real estate investors when the heirs have no interest or experience in real estate. Happy to further explain if you feel this may be a possible solution for you to explore. Best

@Yern Chao one strategy you may have not heard about is using a Delaware Statutory Trust (DST) in your 1031 exchange. You're able to sell your property, but have to reinvest into the DST which is a professionally managed real estate portfolio. Some investors use this strategy to retire from active management while using the 1031 exchange to deffer capital gains. I know you said you wanted to exit real estate, but figured it's worth a mention. Happy to further explain if that's of any interest to you. Best

@Joe Szymczyk have you ever heard of Delaware Statutory Trust (DST)? This strategy uses the 1031 exchange code and allows you to reinvest your investment into professionally managed portfolios, diversified across asset class and geographic, stay invested and earn passive income you don't have to manage.

I am not a tax professional (disclaimer), but you're not going to be able to just forego paying taxes, rather differ them using the 1031 exchange or as Natalie mentioned using installment sale.

Best of luck.

@Tim Zajicek

Pro's: professional management and due diligence, diversification across asset type/sector/location, flexibility in investment dollar amount and placing debt, passive real estate for retirees or disinterested owners, fast efficient closing to adhere to 1031 exchange timeline, backup identification or leftover funds placement. 

Con's: no direct management decisions, illiquid with no secondary market

@AS Chow, Brandon is accurate with the top three largest, though there are a lot more sponsors that have varying DST portfolios. The fees are built into the portfolio where the sponsor earns on their spread over the actual yield to investor, so there is no decrease to capital going into the portfolio. You can absolutely spread your funds around into multiple DST portfolios with different objective and timelines. Returns can range from 4-6% annually. The holding periods are never set, though the sponsors typically like to get out in 5-7 years, but that differs across sponsors and portfolios. The sponsor would sell out of their portfolio investments, dissolve the DST, and return capital and any gains to investors, at that time you can 1031 into another DST or building direct if you wanted. Happy to answer any more questions you may have. Best!

@Zach White , DST's do not have a specified term, but they typically like to get out of properties around that 5-7 year terms as Dave mentioned. There are many different real estate companies "sponsors" that create DST portfolios. These portfolios can be multi-state, asset classes, and sectors. The yield varies between portfolios and sponsors. They can accommodate funds down to the penny and can assign debt to the investor. DST portfolios are sold through licensed financial advisors, like myself, and we do our own due diligence to accredit the investors. Happy to answer any other questions you may have, directly or on this tread. Best!