Qualified Intermediaries and Their Role in the 1031 Exchange Process

Qualified Intermediaries are independent third parties acting on behalf of the exchanger.

a bridge figuratively represents qualified intermediaries

Article Updated July 25, 2024 The IRS requires that money generated from the sale of the relinquished property must be held by a qualified intermediary until the replacement property is purchased.  If the investor touches or in any way controls funds used for a 1031 exchange, the exchange will be disallowed by the IRS and tax on the capital gains…

Delaware Statutory Trust Vs Tenants in Common

Delaware Statutory Trusts Vs Tenancy-in-Common Property Investments

delaware statutory trust article header

Investors analyzing passive real estate investments are frequently faced with making the choice between investing in a Delaware Statutory Trust (DST) or purchasing part of a tenant in common property (TIC). This situation often occurs on the acquisition or replacement side of a like-kind 1031 tax deferred exchange. Real estate investors look for passive replacement property because – while they…

Real Estate Investments – Class-A Vs Value-Add

Compared to Class-A property, Value-Add real estate investments are more speculative in nature.

example of a class a real estate investments property

Real estate investments range from conservative, passive income generating property to those that have a higher risk profile and require active management. The physical characteristics of property vary based on the length and term of existing leases, the credit quality of the tenants, and the condition and location of the real estate. What is the difference between Value-Add and Class-A…

Four Ways to Diversify A Property Investment Portfolio

Top four ways to diversify a real estate investment portfolio, and some common mistakes to avoid.

investment property diversification

Updated July 26, 2024 Diversifying a property investment portfolio can lead to higher yields, lower risk, and preservation and growth of investment capital. In this article we’ll discuss the top four ways to diversify a real estate investment portfolio, and some common mistakes to avoid when diversifying property investments. Using different risk-and-reward levels to diversify a property portfolio When real…

Reverse 1031 Exchange Explained

Reverse 1031 exchanges can be quite complex. We will explain the process.

the reverse 1031 exchange explained

Reverse 1031 Exchange – Here is How it Works By following the rules and guidelines in Section 1031 of the Internal Revenue Code, real estate investors and business owners can defer paying capital gains tax by selling real estate property and replacing it with another like-kind property. 1031 tax deferred exchanges generally fall into three categories: delayed, reverse, and build-to-suit….

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The ABCs of DSTs