Monthly Archives: September 2017

Fractional real estate investments: Meaning and its benefits

If you are a seasoned real estate, you might be aware of the term ‘fractional real estate investments.’ You can simply consider it as a co-ownership in one or multiple properties by various real estate investors. This type of investment is popular among 1031 exchange investors, who can defer capital gains taxes. For fractional 1031 investments, the IRS has approved two structures: the DST (Delaware Statutory Trust) and TIC (Tenants-In-Common).

Here are some perks of fractional real estate investments that make it a preferred choice.

Get a hold of high-value properties

An investor can get fractional ownership of properties like a medical office complex, multi-unit apartment building, or shopping complex. These types of properties are usually beyond the reach for an individual.

No burden

Handling a property as a landlord is one of the toughest exercises. There are even several books written on how to manage your property as a property. The good news is that you don’t have to manage or maintain your DST investments.

Enjoy stable income

You, as an investor, can examine potential returns and the risks linked to DST properties. This is because the DST properties are usually stabilized assets with active operating histories.

Diversification of real estate portfolio

The structure like DST allows an investor to have a hold of multiple properties. This helps in diversification on the basis of location and property type.

If you are looking Delaware Statutory Trust for 1031 exchange purpose, contact the experts from FAI Exchange. Apart from helping you locate the best DST investments, the experts will guide you through the whole exchange process.

The benefits of real estate investments

Whether real estate investment is a good move or not is something that confuses some real estate investors. Through this blog post, we discuss benefits the real estate investors can enjoy through property investments in Massachusetts.

Real estate is a hard asset

Being a tangible asset, real asset is referred to as “real” or “hard” asset. The hard assets can be utilized to produce other services or goods. This offers an assurance that, even during economic downtimes, they will be of some value.

Cash flow

This is the reason why a lot of investors prefer investing in this type of asset. A real estate investment lets an individual enjoy ongoing monthly income. As the income is mostly passive, you are able to invest your time in core business activities or leisurely purposes.

Tax benefits

When compared to other sources of income, you enjoy more tax benefits with real estate investment. The government offers benefits like low tax-rates for long-term profits and depreciation. You can also defer taxes on capital gains when you plan to sell your property. This can be done through 1031 exchange, in which you have to purchase like-kind property of same or greater value.

Diversification of portfolio

By diversifying your portfolio, you can reduce risks compared to portfolios with only bonds and stocks. You can receive consistent returns by making an investment in assets having low or negative correlation.

If you find investment in real estate somewhat cumbersome, you can choose an easier method. We are talking about DST investments. This is not only a hassle-free process but also allows real estate investments with less money.