Diversification
Diversification is the practice of spreading investment capital across multiple assets, markets, or property types to help reduce concentration risk. NASIS presents fractional ownership and DST structures as tools that may help investors diversify their real estate holdings more efficiently.
Depreciation Deduction
A depreciation deduction is a tax benefit that may allow owners of investment real estate to reduce taxable income over time, even though depreciation itself is a non-cash expense. NASIS references depreciation as one of the potential tax advantages associated with investment real estate and DST ownership.
Portfolio Diversification
Portfolio diversification is the strategy of spreading investment capital across multiple assets, property types, markets, or investment structures in order to reduce concentration risk. NASIS presents fractional ownership and DST investing as a way to diversify real estate exposure more efficiently.
Due Diligence
Due diligence is the process of carefully investigating a real estate investment before acquisition. It may include review of financials, leases, physical condition, title matters, market conditions, debt terms, and other factors that could affect investment performance. NASIS emphasizes comprehensive due diligence as part of its investment process.
Deferred Exchange
A deferred exchange occurs when a property with a capital gain is sold and replaced with a like-kind property using a 1031 exchange to defer the payment of any capital gains tax owed.
