Determining the right investment(s) for property transition sale proceeds is not a simple task. There are numerous providers, brokers, and agents who present one or two viable options, while dismissing all others they are not familiar with or are not properly licensed to provide.
At Real Estate Transition Solutions, LLC we regularly evaluate all options available to our clients so that they are presented with a comprehensive and balanced list of reinvestment options. We guide our clients through the evaluation process, analyzing each investment option to identify their respective strengths, weaknesses, complexity, opportunities, risks, and tax implications. Available options fall within these general categories
For some investors who value outright control of their real estate assets and are not opposed to the effort and time required for active management – fee simple property may be a good fit. While sourcing fee simple property for exchange purposes can be difficult due to the rigid timeline of a tax-deferred exchange, it is possible with proper planning. Fee simple property has a number of strengths and weaknesses that are worthy of consideration to ensure the property profile is consistent with your investment objectives.
Fee-Simple Net Lease Property
For investors who value outright control of their real estate assets but do not want to put forward the effort required for active management – fee simple triple-net lease property may be a good fit. Working with large credit-worthy tenants who are willing to sign long-term leases reduces cashflow risk, however concentration risk is generally present as these properties tend to sell for $1-$15M. Similar to outright fee simple property, one must understand the risks and opportunities inherent in fee simple triple-net lease properties.
Delaware Statutory Trust (DST) Property
For investors looking for cash flow and diversification while avoiding active management – investing in a Delaware Statutory Trust may be a good fit. The DST is a real estate ownership structure that was approved as qualified replacement property for tax-deferred exchange purposes by the IRS in 2004 (Revenue Ruling 2004-86). DSTs provide considerable flexibility for investors and are classified as securities that must be transacted by a securities Broker/Dealer licensed with both the Financial Industry Regulatory Authority (FINRA) and the Securities Exchange Commission (SEC). You can learn more about this opportunity here at our licensed affiliate, R.W. Bowlin Investment Solution’s webpage: Delaware Statutory Trusts
For investors who prioritize access to capital and liquidity – paying the tax from the transaction proceeds and investing in a managed portfolio may be a good fit. Our securities license affiliate, R.W. Bowlin Investment Solutions, can design a portfolio that is tailored to address your specific investment objectives. Portfolios are often comprised of: bonds, equities, traded and non-traded REITs, and “alternatives.” Portfolios are designed to prioritize liquidity, diversification, cash flow, appreciation and tax reduction/deferral strategies. You can learn more about this opportunity here at our licensed affiliate, R.W. Bowlin Investment Solution’s, webpage: Portfolio Philosophy
Customized “One-Off” Real Estate Solutions
For investors who have specific ownership preferences, investment objectives and/or significant transaction proceeds to allocate – consider our custom “one-off” real estate solutions. Within these solutions, we work with developers and other real estate firms to structure co-ownership opportunities for value-add, horizontal or vertical development projects. Our network of real estate firms includes many reputable, nationally recognized companies with significant industry experience. All projects are unique in and of themselves and will be considered on an individual basis.
If you believe one or more of the aforementioned investment opportunities could be the right fit for your particular situation and would like to discuss their respective strengths, weaknesses, opportunities and risks – we are available to meet with you or talk over the phone addressing your specific situation and goals.
The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the sponsors Private Placement Memorandum (PPM) which is solely available to accredited investors and accredited entities. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million dollars exclusive of primary residence) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity please verify with your CPA and Attorney. There are risks associated with investing in real estate and Delaware Statutory Trust (DST) properties including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies and illiquidity. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Diversification does not guarantee profits or guarantee protection against losses. Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation.
Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products through Concorde Insurance Agency, Inc. (CIA) R.W.Bowlin Investment Solutions is independent of CIS, CAM and CIA.