RENT Magazine Q2 '24

In most cases, investors are committing to the REIT at the outset, while some programs may provide an option to cash out when the REIT acquires the initial 1031 property. The same institutional real estate operator (known as the “sponsor”) who arranged the 1031 program will control the disposition of the property and also is affiliated with the target REIT. BOTTOM LINE Trading your rental property for REIT interests is a two-step process, with 3-4 years before your shares become redeemable. When the dust settles, you have the opportunity to own (fractionally) a diverse portfolio designed for the potential of consistent income with continued depreciation and estate planning simplicity. Additional Resources: ✓ For more information on the 1031/721 combo strategy, click here. ✓ To watch a video on this topic, click here ✓ For general information on passive replacement strategies, please visit our website at https://1031capitalsolutions.com/category/ literature/

RICHARD D. GANN, JD Managing Partner 1031 Capital Solutions (800) 445-5908 1031CapitalSolutions.com

Richard (Rick) Gann is an attorney, licensed real-estate broker, and general securities principal specializing in 1031 exchange solutions and he is co-author of the book How to Retire from Being a Landlord.

Disclosures : UPREITs may impose one or more of the following fees on 1031 investors: conversion fee, ongoing asset management fees, liquidation fee. Consult with your legal or tax professional before investing. This is for informational purposes only, does not constitute individual investment advice, and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance. There are material risks associated with investing in DST properties and real estate securities including liquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk. A listed REIT is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. Non-listed REITs also invest in real estate directly, but their shares are not listed on an exchange; redemptions are limited and may be suspended. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate. There are risks associated with these types of investments and include but are not limited to the following: Typically no secondary market exists for the security listed above. Potential difficulty discerning between routine interest payments and principal repayment. Redemption price of a REIT may be worth more or less than the original price paid. Value of the shares in the trust will fluctuate with the portfolio of underlying real estate. Involves risks such as refinancing in the real estate industry, interest rates, availability of mortgage funds, operating expenses, cost of insurance, lease terminations, potential economic and regulatory changes. This is neither an offer to sell nor a solicitation or an offer to buy the securities described herein. The offering is made only by the Prospectus. Securities offered through Concorde Investment Services, LLC (CIS), Member FINRA/ SIPC. Advisory Services offered through Concorde Asset Management, LLC (CAM), an SEC- registered Investment Adviser. 1031 Capital Solutions is independent of CIS and CAM.

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