Our Insights

Partner Cory Thomas’ Journey as a Real Estate Investor For over twenty-eight years, I have been deeply involved in real estate investing. While attending San Diego State University, where I earned a degree in psychology and minor in real estate, my journey began at eighteen years old when I received my real estate license and worked as a realtor. Shortly after graduating, I purchased my first property, a townhome

Delaware Statutory Trusts (DSTs) are popular investment vehicles that allow investors to hold fractional interests in real estate assets. The success of a DST investment depends heavily on the integrity, experience, and management acumen of the sponsor. A sponsor is a real estate investment and management company that purchases properties under the DST structure and offers investments in the property through the trust. In this article, we will discuss

Delaware Statutory Trusts (DSTs) are an appealing option for accredited investors who want to invest in real estate as part of their 1031 exchange strategy. These investment types enable investors to co-own properties with other investors without the hassles of property management. DSTs also provide the simplest form of debt replacement, through potential tax deferral under Section 1031 of the Internal Revenue Code, where the debt replacement requirement can

A closer look at the Sponsor’s role and the need for increased transparency in the world of DST Real Estate.

First-time DST investors frequently have questions about selling their individual DST investment before the entire DST sells. Most have an understanding of the DST investing timeline (exchange into a management-free DST for income and appreciation, wait for the DST sponsor to put the property on the market where ideally, it sells for a handsome profit, and do another 1031 exchange). The DST sponsor/trustee is responsible for deciding when to

If it feels like you have been seeing the acronym UPREIT (Umbrella Partnership Real Estate Investment Trust) popping up frequently recently, you are correct. Sponsors and investment advisors have been touting UPREITs as a tax-deferred alternative to 1031 Exchanges. Section 721 is one of the most common provisions in the tax code and is triggered whenever property is contributed to a partnership. This mundane provision becomes much more interesting

Free and clear. It is the dream of every homeowner in America – to own their home free and clear of any mortgage. But is “free and clear” all it is cracked up to be in the DST space? Recently, one of my clients inquired about exchanging from a single-tenant, net-leased property with a 50% loan-to-value (LTV). He strongly believes in the security of owning free and clear property.

Recently, several DST property sponsors from the multifamily, self-storage, and industrial sectors have asked me if they should consider offering UPREITs, or umbrella partnership real estate investment trusts. This acronym is popping up everywhere as sponsors and investment advisors alike have been touting this option as a tax-deferred alternative to 1031 exchanges.  We have been involved in UPREIT transactions in the past and have had a few investors who have