1031 Exchange Properties

Realtynet Advisors – 1031 Exchange Replacement Property Specialists

Our focus on 1031 exchanges started in 1997. At that time, we first began matching exchangors with conservative replacement property that provided secure monthly income. At that time it was primarily net-leased properties but soon expanded to the emerging TIC market in 1999. As Delaware Statutory Trusts gained popularity we rounded out our client offerings to clients with DSTs. In working with 1031 exchangors, we’ve found that  a significant portion of exchangors need assistance in navigating the process and finding suitable replacement property. Many have no experience and feel overwhelmed finding properties that will meet their objectives – especially within associated time restraints. With most exchangors being baby boomers searching for properties that provide passive cash flow, we’ve made that our sole focus. If you’re looking for replacement property that provides secure monthly income without the management headaches – you’re in the right place.

One Place – More Solutions

Those seeking passive real estate investments for their 1031 exchange will quickly find that there are three main types of investments that provide cash flow without management requirements – net-lease real estate, tenants-in-common properties, and Delaware Statutory Trusts. However, you’ll also find that these industries are relatively segregated and it’s no surprise as to why.

  • Commercial real estate agents that specialize in net-lease properties have no involvement with DSTs and rarely have any significant knowledge of TICs
  • DSTs are securities and sold through broker dealer community by registered reps.
  • TIC investments are less common these days since the industry got a black eye from the numerous deals that combined high leverage and interest-only financing. TICs are a specialized niche and those still involved in them have no involvement in DSTs or commercial real estate.

Realtynet Advisors sees the value in each type of investment and with experience in all three formats, we help our clients weight options and find the most suitable option for their specific needs.

A Comprehensive Approach

From the day you close on your relinquished property, you have only 45 days to identify replacement property candidates. 45 days is a short period of time to do preliminary due diligence and many exchangers find themselves scrambling for suitable options as their 45th day comes. Realtynet Advisors will help you:

  1. flesh out and clearly identify your investment objectives
  2. review how each investment format may or may not help achieve those objectives
  3. provide you with comprehensive and tailored options to meet your needs.

We’ve spent over 20 years in the 1031 industry and we provide our clients the widest variety of solutions available. For those looking at TIC properties, we can even augment the efforts of your real estate agent or financial advisor. This can be a stressful time: the stakes are high. You could end up paying tax or investing in a property that you’re not all that excited about. Our advisement team can relieve that stress so give us a call for a free consultation.

I’d like help with my replacement property >>>

Investment Grade Property Provides Passive Income

Most exchangors are baby-boomers and many are seeking passive income. They’re looking for properties without the hassles or headaches associated with management-intensive real estate. Their main goals the preservation of principal and secure monthly income direct deposited into their checking account, without any ongoing active involvement. If this sounds like you, we get it. Below are the three most popular choices for passive 1031 dollars. If you’ve done an exchange before, there’s a good chance you’re already familiar with these options – but at Realtynet Advisors you can find all of them from one firm!

NNN - Triple Net Lease Properties

For those looking for commercial real estate, we focus on single tenant, net-lease properties. Net-lease means the tenant pays the taxes, insurance, maintenance, repairs, and utilities. Additionally, we focus primarily on properties with leases guaranteed by a regional or national tenant, such as Walgreens, AutoZone, Tractor Supply, Dollar General, Goodyear, DaVita Kidney Care, Verizon Wireless, or O’Reilly Auto. Most net-leases are 10-15-year terms, with multiple renewal options. This provides peace of mind and monthly rent payments direct deposited right to your bank account.

Learn more about NNN Properties >>>

TIC - Tenants In Common Properties

Tenants in Common Properties or “TIC’s” are a very popular choice for 1031 exchangers looking for secure monthly income. In a TIC property, owners take undivided, fractional interest of an entire property. Through TIC ownership, owners of fractional interest enjoy the same benefits as a sole owner. TIC’s came into popularity because they allowed most investors access to own (a portion of) an institutional-grade property with a minimum investment. With minimums as low as $50,000, investors may choose to own fractional interests in multiple TIC Properties for maximum diversification. Many question the validity of TICs after hearing of the many failed deals caused by the 2008 recession. These concerns are very valid, and in fact, we share them. These failed TIC investments were do to high leverage and often interest-only financing. This combination became problematic during the recession and resulted in many investors (and sponsors) taking major hits. Realtynet was one of the nation’s first TIC sponsors but was focused exclusively on debt-free properties. Because of this, 100% of our clients made it through the recession unscathed.

 See our current TIC properties >>>

DST - Deleware Statutory Trust Properties

Much like a TIC property, a Delaware Statutory Trust allows a 1031 investor to purchase a fractional interest in high-quality property, but with a couple significant differences. A DST allows you to own a prorated share of a portfolio of income producing properties instead of owning an undivided interest in one property. The ability to diversify your 1031 dollars can be a real advantage toward protecting your retirement income. For example, you might place $100,000 in a DST consisting of four medical properties, $100,000 in one that has a 300-unit apartment complex, and $100,000 into another, which has a dozen single tenant net-lease properties leased to national tenants. With $300,000 of exchange proceeds you were able to diversify into 16 properties in differing locations and industries.

Another difference, is when the property or properties within a DST is leveraged. With a property you acquire on your own, you are the one paying for an appraisal, and must supply the bank with your financials and tax returns, pay closing costs and origination fees, and put up with the time and hassle of dealing with a lender. A DST holds title to the property or portfolio of properties, while you and the other investors own beneficial interest in the DST. The trust already owns the property and already has financing in place when you invest in the DST. No shopping or qualifying for financing. Also, these loans are typically non-recourse, very seldom found at your local bank. Because of this, even with leverage, a DST is essentially a real estate product ready to purchase ‘off the shelf’.

A DST is professionally managed and can are available with portfolios of debt-free properties, or leveraged, if you need debt replacement in your 1031 exchange.

Learn more about DST’s >>>