All Forum Posts by: Nick Cannon

@Taylor L. absolutely! TIC with syndication is a really good strategy when it fits. For my practice I focus mainly on DST's, 721's (Up-REITs) and REITS (both public and non-traded). REIT's obviously wouldn't apply to 1031's.

Thanks for taking the time to reply!

Hey Bigger Pockets!

I would assume that most investors on this platform know about traditional 1031 Exchanges. However, accredited investors that would like to sell and do a 1031 Exchange but don't want to physically manage the whole or part of a property any longer can take the proceeds and move it into a 'like-for-like' strategy called a DST (Delaware Statutory Trust).

There are 3 main scenarios where these strategies usually come into play:

1. The client wants to sell a property but is sitting on it because of the capital gains implications
2. The client sells a property or properties but hasn't allocated the entire amount to a physical property (ie - portfolio is sold for 2.5m and identified properties are valued at 2m. The 'leftover' 500k can be put in a 1031 DST product)
3. The client can use the DST as a backup. If they have identified physical 1031 properties but need a backup in case the deal doesn't go through.

Considerations:

1. -Only accredited investors or companies can take advantage of 1031 securities products.
2. -These strategies are not liquid (normal holding time is 5-10 years) although there are some products that are shorter duration Up- REIT (IRS code 721) and allow laddered liquidation which creates a tax-efficient exit strategy.
3. -Identification of the new property or properties needs to happen within 45 days of closing the sale of the subject property. You then have 180 days to close.
4. -Leverage has to be at or below the subject property.

There are specific and customized strategies that can be applied to qualified investors but I wanted to post here to see if there was any interest in partnering together.

Please message me if you'd like to have a further discussion.  

Thanks!

(Compliance Disclosure)

Neither APFS nor its Representatives provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions.

Securities offered through American Portfolios Financial Services, Inc.(APFS) Member FINRA /SIPC. Investment Advisory Services offered through American Portfolios Advisors, Inc. (APA)an SEC Registered Investment Advisor.

@Christopher Smith thanks for the response. I have access to multiple strategies but DST's are predominately what I use. I'm not a DST promoter and the fees associated with the ones I use are in line with normal real estate commissions. I'm open to a deeper convo if you're interested.

@Joshua Thompson thank you for the reply as well. The investments that the SEC and FINRA have classified as securities 1031 products are considered like for like under the IRS code.  There is no getting around any rules. Everything is very transparent and clear and follow the applicable rules and regulations. 

@Michael Plaks I appreciate the direct comment and feedback. My intention was not to be vague. As mentioned above I have access to multiple strategies and since they are Reg D investments I can't overtly advertise specific products, only strategies. I use mostly DST's for what I do and would be happy to have further discussion individually if interested. If not again I appreciate you taking the time to respond to my post.

Hi Bigger Pockets Family. I’m wondering if anyone has an appetite to discuss 1031 exchanges from the angle of unique strategies. I have a pretty unique niche where I help accredited investors who are looking to retire and/or exit the physical management of properties but don’t want to pay cap gains do a 1031 Exchange into a Securities product. They still get monthly income without having to physically manage the property.

There’s obviously restrictions and it’s not for everyone. Just curious as to the potential interest in this forum.

This isn’t a covert solicitation I assure you. Just looking to connect with folks that may have an interest.

If anyone wants to have a discussion please respond to this post. Thanks in advance!

Thank you for everyone that took the time out to respond to my question!  I really appreciate it.  There are some recommendations that I wasn't aware existed to creatively finance or reduce the cost of this 4-plex.  Thanks again BiggerPockets family!

Thank you @Steve Babiak and @Upen Patel!

Thank you Jason Casmon.  I appreciate the advice from the agent perspective.  Unfortunately, I'm not in a position to live in one of the units or that would be the best option.  I really appreciate you taking the time to respond.

Thank you Thad Mcnair. That is really good information that I'll apply.

Thank you Michaelina Stathakos!