Our Insights

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

Few tailwinds are as powerful for investors as demographics. Data on demographics provides an understanding of the characteristics of specific populations, which assists in forecasting trends for potential investment opportunities. One of the more powerful demographic trends is affordable housing for seniors, and the investment opportunity is in manufactured housing communities or MHCs. This is an asset class that I am most familiar with based on my solid understanding

As downtown offices sit empty, companies are embracing solutions to continue remote work during the pandemic and potentially for the foreseeable future. Those who no longer need to commute are finding more affordable housing outside of the city, causing an influx in suburban migration. For those still tethered to the city, landlords must adjust rents for an increasing number of unemployed Americans.  What this really comes down to is

A client once asked me to look over a DST property shown to him by another rep. Everything looked great on the surface, good cash flow, excellent market, in-fill location, but when I saw the name of the sponsor, I told him, “run, don’t walk, away from this property.”   What the client did not know was that this sponsor had a terrible history of mismanaging their properties. I showed

We hear the term “new normal” everywhere these days. And with good reason. But how will this new normal filter across the real estate market moving forward? What is the “next normal?” At this point, it is a question with challenging answers because so many important variables remain uncertain. Is COVID-19 waning, or are we still in round one of this fight? Will there be a round two? If