Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Securitized Real Estate and 1031 Exchanges
    Securitized Real Estate and 1031 Exchanges
    Securitized Real Estate and 1031 Exchanges
    Ebook42 pages40 minutes

    Securitized Real Estate and 1031 Exchanges

    By Private Placement Handbook Series

    ()

    Read preview

    About this ebook

    Securitized real estate offers accredited investors the opportunity to join with other accredited investors to own investment-grade real estate. Normally, these properties are financially secure, with creditworthy tenants under long-term triple net (NNN) leases, and under professional management. Asset classes include multifamily housing, NNN retail properties, office buildings, industrial complexes and warehouses, and hotels.

    LanguageEnglish
    PublisherPrivate Placement Handbook Series
    Release dateSep 11, 2015
    ISBN9781310596124
    Securitized Real Estate and 1031 Exchanges
    Author

    Private Placement Handbook Series

    After getting a JD from Stanford Law School, a MA from the University of Chicago, a diploma from the University College London, and working as a reporter for The Wall Street Journal, Doug was a member of the California bar for 40 years, during which time he founded a series of law reporting services now owned by Thomson-Reuters. Doug specializes in debt and equity crowdfunding. He helps small business identify and solicit sources of private equity. Doug monitors a LinkedIn discussion group, State Securities Regulation, with 1500 members. Connect with Douglas Slain: LinkedIn: http://linkedin.com/in/douglasslain Facebook: http://facebook.com/douglas.slain Twitter: https://twitter.com/exemptofferings Blog: http://www.privateplacementadvisors.com/apps/blog Web site: http://privateplacementadvisors.com

    Read more from Private Placement Handbook Series

    Related to Securitized Real Estate and 1031 Exchanges

    Related ebooks

    Training For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      How To Use A Self-Directed IRA To Invest In Real Estate

      Sep 20, 2018

      A self-directed IRA is a type of retirement account legally structured like a traditional or Roth IRA. Though the same annual contribution limits and potential tax advantages apply, self-directed IRAs allow individuals to utilize what is referred to

      3 min read

    • Article

      What’s a DST? The Lowdown for Real Estate Investors

      May 22, 2022

      DSTs are unique real estate investment vehicles that allow a group of individual investors to purchase fractional interests in large commercial real estate assets that typically would be well beyond their financial reach as solo investors. DST invest

      3 min read

    • Article

      Trans-tasman Tax Issues

      Dec 2, 2021

      Matthew Gilligan is a property investor, developer and tax adviser. He is managing director of chartered accounting firm Gilligan Rowe & Associates, where he heads the specialist property and asset planning divisions. Kris Pedersen of Kris Pedersen

      5 min read

    • Article

      Before You Invest in ‘Crowdfunded’ Real Estate, Consider the Tax Implications

      Jul 7, 2020

      The rise in online real estate investing in recent years has been remarkable. As the global consulting firm EY estimates, the online real estate investing market worldwide is expected to be $8.3 billion in 2020, with no sign of slowing. For all the

      2 min read

    • Article

      Once the Pandemic Recedes, Where Will the Real Estate Investment Opportunities Be?

      Sep 14, 2021

      The COVID-19 pandemic has been kinder to some real estate asset classes than others. Proactive investors can take advantage of opportunities with the potential to build wealth and generate income from investment real estate, particularly tax-advantag

      2 min read

    • Article

      To Trust Or Not To Trust

      Aug 1, 2019

      To Trust Or Not To Trust
      6 min read

    • Article

      A Risk-Averse Approach to Real Estate Investing

      Mar 22, 2021

      The highest profile professional real estate developers and investors are typically those who have won big or lost big — they made their names taking oversized risks that in some cases paid off handsomely and in other cases crashed and burned. But re

      3 min read

    • Article

      What Assets Should Be Included in Your Trust?

      Jan 16, 2022

      One of the largest financial planning misconceptions people hold is that having a will ensures their property will transfer quickly to their heirs. The truth is, whether you have a will or not, your assets will go through the probate process when you

      5 min read

    • Article

      Trapped by Capital Gains? Opportunity Zone Funds Provide a Way Out

      Nov 29, 2019

      It's tough to think of a highly appreciated asset as the problem child in a portfolio. The goal is to choose investments that will flourish, after all. And those strong performers are typically the ones you love best and hold onto the longest. But t

      2 min read

    • Article

      The World Of Rent-to-buy Deals

      Mar 29, 2023

      Q Our tenant has approached us asking if we would enter into a rent-to-buy agreement. Are these common and are there any fish hooks? A Rent-to-buy (or rent-to-own) agreements have been gaining popularity in recent years. There are some scheme provide

      6 min read

    • Article

      The (Only) 3 Reasons You Should Have an Irrevocable Trust

      Jul 27, 2020

      Despite what you may have heard, you probably do not need (or want) an irrevocable trust. When you create an irrevocable trust you are creating a document you cannot change easily, and the property you transfer to the trust is no longer in your contr

      5 min read

    • Article

      Fasten Your Seat Belts: Commercial Real Estate Is Taking a Flight to Quality

      Aug 20, 2019

      The commercial real estate market has been so strong the past few years that property appreciation alone has turned otherwise marginal deals into windfalls. A low-risk/high-return market atmosphere has conditioned today's real estate investors into b

      2 min read

    • Article

      Build-to-rent Will Cost

      Jun 27, 2019

      Build-to-rent Will Cost
      2 min read

    • Article

      Trusts 101: Why Have a Trust?

      Jun 11, 2019

      It's a well-documented fact that most people do no estate planning. Of those who do, the majority use a last will to pass their estate to a spouse or divide it among their children. Most estate plans do not establish a trust. I suggest that if you c

      2 min read

    • Article

      15 Best Foreclosure Sites for Finding Properties

      Jan 6, 2021

      You may remember that foreclosures were a big part of the Great Recession. As the economy cratered, foreclosure filings soared. In the first half of 2010 alone, 1.65 million U.S. homes spun into foreclosure, according to data from ATTOM Data Solution

      3 min read

    • Article

      There is No Place Like Home: Mature Foreign Asset Protection Trusts Are Coming Home

      Feb 14, 2018

      Do you have a foreign asset protection trust (FAPT)? Has it been established for more than 10 years? Are you interested in ways you can save on the costs of maintaining your FAPT? You may now bring your trust home to a qualifying state and still ma

      2 min read

    • Article

      Want to Pay 0% in Taxes? Here’s How

      Aug 23, 2021

      One of the greatest expenses business owners and retirees alike face is income taxes. That’s why a forward-thinking tax planner is so valuable. They can leverage the Internal Revenue Code (IRC) to lower your taxes and help you build wealth. However,

      6 min read

    • Article

      Life Insurance: Beyond Just Estate Planning

      Sep 13, 2019

      If you've never said, "I do," or live on your own and don't have any children, you probably think you don't need life insurance. Most people may not realize that life insurance can provide benefits well beyond paying for funeral expenses. You'll wan

      5 min read

    • Article

      Qualified Opportunity Zone Investing 101

      Nov 18, 2021

      In Congress, political discourse took a temporary break from feuding when both sides supported creating significant tax incentives for Qualified Opportunity Zone (QOZ) investing — as part of the 2017 Tax Cut and Jobs Act. The Act was co-authored by S

      6 min read

    • Article

      Creating Extra Value

      Jun 4, 2020

      Creating Extra Value
      5 min read

    • Article

      3 Ways Annuities Can Help Boomers Reduce Retirement Risk

      Aug 19, 2019

      As 10,000 Baby Boomers a day leave the workforce behind, only 28% believe they are doing -- or have done -- a good job preparing for retirement. What's more, only 25% believe they will have enough money to live in retirement, according to the Insured

      5 min read

    • Article

      How to Create Your Own Pension

      Aug 30, 2018

      Those who don't have a traditional pension -- and that includes most of us -- are frequently envious of those who do. What could be better than a guaranteed paycheck that lasts as long as you live and is unaffected by the vicissitudes of the stock ma

      4 min read

    • Article

      Busting Trust Myths

      Sep 3, 2020

      “Trust busting” is the term often used to describe instances where a court finds in favour of a claimant trying to access trust assets. Here, though, I do not want to talk about “trust busting”. Instead I want to bust some trust myths. There has been

      2 min read

    • Article

      The Myth of Passive Real Estate Investing

      Jun 6, 2022

      In my financial planning firm, we focus on serving clients in their 30s to their 50s — and we see firsthand how popular the idea that real estate is a way to get rich (relatively) quick is. That would be fine if real estate was a no-brainer passive-i

      5 min read

    • Article

      Alaska Court Just KO'd Domestic Asset Protection Trusts

      Mar 9, 2018

      Over 15 million lawsuits are filed in the U.S. each year, so protecting your assets from a financially ruinous lawsuit has never been more important. But one common way of doing that -- a domestic asset protection trust (DAPT) -- just took a big hit

      3 min read

    • Article

      Nontraditional Options Let IRA Investors Crank Up the Risk

      Sep 30, 2021

      Most retirement savers are determined to keep their investments simple. They stash most of their savings in low-cost index funds or in target-date funds, which are portfolios of diversified funds that become more conservative as you approach retireme

      7 min read

    • Article

      Tax-Free Investment Strategies

      Sep 23, 2019

      "There's one for you, 19 for me, cuz I'm the tax man" was from the first tax protest song as performed by the Beatles. You see, Britain imposed the 95% tax bracket on the Fab Four, leaving them with 1 pound for every 19 pounds paid in taxes. In the

      4 min read

    • Article

      Is Your 401(k) or IRA a Sleeping Tax Bear?

      May 7, 2019

      Plenty of retirements these days are built in large part by stashing away money week by week into tax-deferred accounts, such as traditional IRAs or 401(k)s, among other options. And certainly, such accounts can provide a wonderful feeling of confid

      4 min read

    Related categories

    Reviews for Securitized Real Estate and 1031 Exchanges

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Securitized Real Estate and 1031 Exchanges - Private Placement Handbook Series

      What is Securitized Real Estate?

      Securitized real estate is a real estate interest that is packaged and sold as a security. It is regulated by Federal and state securities law and requires more disclosure than most real estate offerings.

      Real estate has the well-known advantage of depreciation and it also usually provides income as well as the potential for appreciation. When real estate is offered in the form of securities, investors must be given a professionally prepared private placement memorandum (PPM) as well as other offering documents. These offering documents must reflect due diligence appropriate to a securities offering. Typically, these are larger, institutional grade investments, managed by experienced sponsors.

      What due diligence is performed?

      Due diligence, or the analysis of the facts and circumstances associated with an investment, provides investors full disclosure of the facts and risks before they arrive at an investment decision. Initial due diligence will be performed by the sponsor, the lender, legal counsel, and then by a broker/dealer or other securities licensee.

      Due diligence includes: 1) examination of the sponsor); 2) analysis of the properties; 3) analysis of the market; and 4) review of the structure of the project. If a 1031 transaction is contemplated, there will also be analysis of 1031 tax compliance

      Reasons for rejection of a real estate offering by securities professionals vary; the property, the sponsor, the financing, or the market--each may be judged problematic.

      Advantages of Securitized Real Estate

      Access to institutional grade investment properties

      Securitized real estate offers accredited investors the opportunity to join with other accredited investors to own investment-grade real estate. Normally, these properties are financially secure, with creditworthy tenants under long-term triple net (NNN) leases, and under professional management. Asset classes include multifamily housing, NNN retail properties, office buildings, industrial complexes and warehouses, and hotels

      Management free

      Real estate professionals structure the property acquisition, maintain and lease the property, collect rent, service the mortgage, and eventually sell the property.

      Combined with the 1031 exchange process, such a portfolio can grow tax-deferred over a number of years.

      Income and appreciation

      Investment-grade properties typically offer stable cash flow from rental income, paid monthly or quarterly. As the debt is serviced, the investor’s equity in the property increases even if the value of the property does not. Also there is the potential for appreciation.

      Tax-Sheltered Cash Flow

      Some of the cash flow from these investments can be tax-sheltered and/or tax deferred by depreciation pass-through and interest deductions.

      If an investor has held a property where

      Enjoying the preview?
      Page 1 of 1