1122 Kenilworth Drive
We help Real Estate INVESTORS transition out of Active Management into Retirement
Many people want to sell and part ways with the work (or fees) of actively managing investment properties. Most want to quit the 3 T’s of real estate investing: Tenants, Trash, and Toilets.
Yet many won’t sell due to taxes. These taxes would include long term capital gain on depreciated property as well as a loss of step up at death. Many are uncomfortable selling, paying taxes and losing valuable benefits.
Many real estate investors have an awareness of what is called a “1031 exchange”. This is where the IRS allows an investor to sell an investment property and acquire a similar property with the intent to defer capital gains and depreciation recapture taxes.
But here’s the catch: you must exchange to a “like-kind” property. Why go from managing a property you don’t want to manage another property you don’t want to manage?
You don't have to.
The IRS recognizes you can 1031 Exchange to Passively Managed Real Estate Assets.
Specifically these are assets held and managed in a Delaware Statutory Trust (or DST).
In other words you can transition from being an active investor to being a passive investor. You can step away from the day to day obligations of active real estate investing and let a sponsor (investment management firm) of a DST provide all property asset and management duties.
For many, a DST has benefits beyond the reach of an individual real estate investor. Among these are attractive income, diversification, and access to institutional capital, higher quality real estate properties, professional asset and property management.
We would enjoy walking you through our presentation to see if this approach matches your objectives.
Final point: we offer this service exclusively to accredited investors, i.e. those that satisfy one (or more) requirements regarding income and net worth.