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“Pooling resources in a REIT grants access to potentially higher-value properties, diversifying exposure across multiple assets and markets in order to help mitigate risk,” says Chay Lapin, President of Kay Properties & Investments. “However, it’s important to remember that diversification does not guarantee profits or protect against loss.”

“Investors may find the UPREIT (Umbrella Partnership Real Estate Investment Trust) structure appealing because it allows them to contribute property to a REIT in exchange for operating partnership (OP) units, deferring immediate capital gains taxes. This structure provides access to the diversification and liquidity of a REIT, enabling investors to participate in a professionally managed, potentially income-producing real estate portfolio without the responsibilities of direct property ownership. Additionally, OP units can often be converted into REIT shares or cash, offering flexibility and potential long-term growth opportunities,” said Chay Lapin, President of Kay Properties & Investments.

Notes Chay Lapin, “This tax-deferral strategy can potentially save investors a significant amount of money. Instead of watching a chunk of their profits disappear into tax payments, they can reinvest every dollar into a new property with the 1031 exchange tax deferral strategy.”

Chay Lapin, President of Kay Properties & Investments and expert in 1031 exchanges and Delaware Statutory Trust investments, explores the advantages of debt-free DSTs. By removing the threat of lender foreclosure, these investments provide a safer alternative during turbulent times than their leveraged DST counterparts. With no monthly debt service and increased flexibility for sponsors, debt-free DSTs empower investors to protect themselves from lender risk causing them to sleep better each night.

From the same starting point, you need to complete the purchase of your chosen property within 180 days.

This material is not tax or legal advice. Please consult your CPA/attorney for guidance. Past performance does not guarantee or indicate the likelihood of future results.

Debt-free DSTs also protects investors from cash flow sweeps tied to tenant credit-rating fluctuations.

One of the key benefits of debt-free DSTs is that they eliminate the worry of lender foreclosure.