WHAT TO DO ?
If you own or inherit 2nd home or resort or investment properties..???
Don’t want to continue with ownership or the headaches of managing?
Need to avoid those heavy taxable gains?
This is how it’s done..!!
In this instance:
The heirs (2 sons) of their parent’s properties after their death, inherited properties in various areas of the Sunshine State of Florida. You see the parents had 2nd homes, or resort homes, as vacation rental properties for additional investment income.
The sons had different lifestyles in different parts of the country. Neither one particularly wanted to live or continue the ownership, management or leasing of these properties.
What to do? They decided to sell the properties but found out they would be hit with both inheritance tax and capital gains as well. How to avoid this ‘double taxation’?
Due to the fact that these were investment income producing properties, the heirs found
these properties qualified for a 1031 tax deferred exchange. However, they didn’t want
to trade for real estate they would have to manage and lease themselves.
Working with an advisor, they were informed of the private placement securities market that would offer them alternative investment solutions in various real estate portfolio
products qualifying for real estate tax deferred exchange transactions.
They chose to purchase various DST (Delaware Statutory Trust) products that were investments in an apartment portfolio, a retail shopping center and an office building.
This diversified their portfolio while offering them the alternative real estate products
to tax defer the gains from the sale of the investment homes.
You see, these new DST portfolio products offered them securitized real estate investment properties that were due diligence complete, had non-recourse financing and management in place, while offering the investor both appreciation and depreciation and shared proceeds of sale at time of disposition. Regular monthly income checks provided them each additional passive income without the ‘headaches’.
So now the brothers who inherited their parent’s properties are the proud owners of an apartment complex, retail center, and office building, with regular income checks
on their investment. They have no management responsibilities or worries about the
tenants’ calling them with problems. They are now ‘no hassle’ property owners,
receiving regular monthly checks, and smiling all the way to the bank deposit window.
So, if this is your investment dilemma, — this is how it is done!
All information provided is for educational purposes only. The material contained herein does not
constitute an offer to sell and is not an offer to buy real estate or securities. Some investments are not
suitable for some investors and some investments are only available to accredited investors. Such offers are
made only by a sponsor’s memorandum.
There are material risks associated with the ownership of real estate, including but not limited to, tenant
vacancies, loss of entire principal amount invested, and that potential cash flows, returns, and appreciation
are not guaranteed. Past pricing structures may not be indicative of future pricing and may not result in
Securities offered through Great Point Capital (GPC) LLC.
200 W. Jackson, Ste. 1000, Chicago, Il 60606. Member FINRA/SIPC.
Norma Nisbet is a registered representative with GPC LLC.
Vista Properties and Investments LLC is independent of GPC LLC.