This reintroduction video outlines how commercial real estate strategies are being used by advisors to help achieve a more balanced approach to asset allocation. Modern portfolio construction is occurring in a manner that is strategically allocated using uncorrelated asset classes with the goal of attractive returns and lower risk.
How They Compare
This module compares the most common commercial real estate investment strategies - DSTs, QOZs, LLCs and REITs. The similarities and differences of these strategies can help you determine which is most appropriate for a given client who is interested in CRE investing.
1031 Exchanges, DSTs & Zeros
This module provides an overview of the tax-advantaged 1031 exchange, along with the popular DST and Zero Cash Flow DST investment structures often used by investment property owners tired of the responsibilities of active property management. These options provide investors with diversification and access to institutional-quality properties.
This module discusses the Qualified Opportunity Zone (QOZ) strategy may be appropriate for investors with capital gains from the sale of an appreciated asset who are interested in the tax benefits the QOZ program. QOZ Fund investors who hold specific timeline requirements may take advantage of potential tax-elimination benefits offered by the program.
Ground-Up & Redevelopment LLCs
This module addresses the Limited Liability Company (LLC) investment structure, specifically as it relates to ground-up and redevelopment strategies. The LLC structure is a popular form of real estate ownership because of the investor’s insulation from personal liability, the relative ease of administration and potential tax benefits.
This module provides education on real estate investment trusts (REITs). Potential benefits of a REIT may include no requirement to pay Federal (and often State) income tax, distribution of at least 90% of the REIT’s income to shareholders annually and income is only taxed at the individual level and on any capital gains.
721 Exchanges & UPREITs
This module highlights how this lesser-known relative of the 1031 exchange offers investment property owners the ability to defer capital gains tax on the sale of investment property by contributing their asset into an umbrella partnership real estate investment trust (UPREIT) via a 721 exchange. Advantages include portfolio diversification and liquidity.