1031 Exchange
Knowledge Center
Your resource to better understanding 1031 Exchanges
The Exchange:
1031 Market Intelligence
1031 Market Intelligence
The Exchange is your RealtyMogul resource for 1031 market intelligence and education. Here you’ll find video and Knowledge Center articles to help you fully understand the details involved when taking part in a 1031 Exchange. The library consists of five major areas of content. We highly suggest you review all of the content available here.
Lifecycle of a DST
Introduction to Delaware Statutory Trusts
Structure of a DST/TIC
Understanding the differences
Managing Debt in a DST
The importance of debt when investing
Asset Class Overview
Get to know Triple Net Lease offerings
Identifying DSTs
What to know when selecting a DST
The Lifecycle of a DST
In this three-part video series, we explore what you need to know before, during and after your 1031 Exchange. We’ll help you understand the important details involved when making a decision regarding your investment.
Also, take a look at additional articles that provide more information on this topic.
Also, take a look at additional articles that provide more information on this topic.
Structure of a DST/TIC
In this video series, we will help you gain an understanding of the differences between a DST and a Tenant in Common (TIC) 1031 exchange investment. We’ll discuss the benefits and risks, what to look out for, and the typical costs involved for both types of investments.
Plus, you can find articles that provide critical insights into these investment types.
Plus, you can find articles that provide critical insights into these investment types.
Managing Debt In A DST
This multi-part video series explores how debt influences a 1031 investment and what you should know to mitigate risk; questions to ask; and the benefits and risks associated with debt when assessing your potential 1031 exchange.
We also provide more detailed articles if you want to dive deeper into this topic.
We also provide more detailed articles if you want to dive deeper into this topic.
Asset Class Overview
This series of videos will share the common asset classes for a 1031 exchange including an overview of the benefits and pitfalls of triple net lease investments, multifamily and self storage.
Plus, review articles that go deeper, including the important questions to ask a broker of a NNN lease asset and ROI vs ROE.
Plus, review articles that go deeper, including the important questions to ask a broker of a NNN lease asset and ROI vs ROE.
Identifying DSTs
This video series addresses the questions to ask when choosing a Qualified Intermediary and tips to consider when considering a 1031 exchange.
You’ll also find accompanying articles that expand upon these topics.
You’ll also find accompanying articles that expand upon these topics.
Explore more resources to learn about 1031 Exchanges
1031 Exchanges can be complex and overwhelming. Explore our library of articles to help you better understand 1031 exchanges. Also, don’t hesitate to reach out to our experienced team.
1031 Exchange
Question to Ask
If DSTs Are Right For You
If DSTs Are Right For You
Navigating the array of opportunities available to 1031 investors can be overwhelming. Determining the most suitable investment option requires careful consideration and thorough evaluation. Among these options, the Delaware Statutory Trust (DST) has emerged as a favored choice for many investors who meet specific criteria.
1031 Exchange
Why a DST May Be a Good
Backup Option for a 1031 Exchange
Backup Option for a 1031 Exchange
In a 1031 exchange, ensuring a successful transaction is crucial to avoid significant tax liabilities. If an exchange fails, the investor may face up to 30%-40% in state and federal taxes, along with depreciation recapture and other taxes. To mitigate this risk, savvy investors often identify multiple properties as potential replacements. The IRS provides guidelines to help investors structure their identification process effectively.
1031 Exchange
How To Use a DST to
Cover for 1031 Boot
Cover for 1031 Boot
Imagine you sell a property and need to reinvest the proceeds into a new property to qualify for the 1031 exchange benefits. The challenge arises when you can’t find a suitable replacement property that uses the full amount of your exchange proceeds. In such cases, any leftover equity can become a “boot,” which is subject to capital gains taxes. This is where DSTs come into play.
1031 Exchange
Why You Should Think Twice
Before Investing in a DST
Before Investing in a DST
Investing in a Delaware Statutory Trust (DST) has gained popularity among real estate investors, especially those looking to defer capital gains taxes through a passive 1031 exchange investment. However, despite its allure, there are several reasons why one should exercise caution before committing to this type of investment. A quality 1031 advisor should educate investors on the reasons why one should think twice before investing in a DST, not just the potential benefits.
1031 Exchange
TIC or DST
When comparing investment structures like Delaware Statutory Trusts (DSTs) and Tenancy-in-Common (TICs), it’s crucial to examine several key factors, including liquidity, certainty of close, tax reporting, financing structure, and associated costs and fees. Both DSTs and TICs allow multiple investors to own fractional interests in larger properties, yet they differ significantly in how they handle these aspects. Understanding these differences can help investors make informed decisions about which structure best suits their investment goals and risk tolerance.
1031 Exchange
5 Risks to Consider
When Buying Real Estate with Debt
When Buying Real Estate with Debt
If an individual exchanges one investment property for another via a 1031 exchange, they may be able to defer capital gains or losses that they would otherwise have to pay at the time of sale.
DISCLOSURE
1031 EXCHANGE RISK: Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts, and certain tax consequences may vary depending on the individual circumstances of each investor. Section 1031 rules that must be carefully followed to qualify for a 1031 exchange. We strongly encourage you to seek guidance from both a qualified intermediary (QI) and a tax professional to navigate his process and ensure compliance with relevant regulations. Please note that RealtyMogul does not provide tax advice.
As part of its 1031 Exchange Concierge services, RM Securities, LLC will provide issuer-prepared materials concerning certain prospective 1031 Exchange products that have not yet been approved by RM Securities, LLC. Any such prospective 1031 Exchange products, and any investment in such products, must be approved by RM Securities, LLC prior to executing any transaction therein. Additionally, any issuer-prepared materials, including issuer offering documents are prepared by the issuer or sponsor of the 1031 Exchange opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for such issuer-prepared materials or any content therein.
As part of its 1031 Exchange Concierge services, RM Securities, LLC will provide issuer-prepared materials concerning certain prospective 1031 Exchange products that have not yet been approved by RM Securities, LLC. Any such prospective 1031 Exchange products, and any investment in such products, must be approved by RM Securities, LLC prior to executing any transaction therein. Additionally, any issuer-prepared materials, including issuer offering documents are prepared by the issuer or sponsor of the 1031 Exchange opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for such issuer-prepared materials or any content therein.