Benefits and Risks Most non-traded REITs with “pre-REIT” exchange options are large, institutional portfolios offering diversity across various sectors, lease durations and geographies. Net asset values (NAVs) are calculated daily but are based on the actual underlying real estate values, rather than a constantly fluctuating stock price. After a one- year hold, healthy non-traded REITs typically offer redemptions capped quarterly (usually 5% of NAV). No secondary market exists for DSTs, there is no
guarantee of principal or income, and the REIT redemption program may be suspended. There is no guarantee that a REIT will exercise its option to purchase its pre-REIT DST. All macroeconomic and financial market risks apply to real estate investments, regardless of the investment vehicle and structure. To learn more about these and other tax-driven real estate investments, contact Richard Gann at 1031 Capital Solutions.
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.
Disclaimer : The contents of this article are for informational purposes only and do not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers are only made through the sponsors Private Placement Memorandum (PPM) which is solely available to accredited investors and accredited entities. There are material risks associated with investing in real estate securities and 1031 replacement properties such as Delaware Statutory Trusts (“DSTs”) and Real Estate Investment Trusts (“REITs”), 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. There are material risks associated with investing in Qualified Opportunity Zone Funds (“QOFs”), including changes in national and local economic conditions, changes in the investment climate for real estate investments, changes in the demand for or supply of competing properties, changes in local market conditions and neighborhood characteristics, the availability and cost of mortgage funds, the obligation to meet fixed and maturing obligations (if any), changes in real estate tax rates and other operating expenses, changes in governmental rules and fiscal policies, and changes in zoning and other land use regulations, environmental controls, among other factors. There are material risks associated with investing in mineral rights interests, including the risk that wells will not provide enough revenue to return the amount of your investment. The revenues are directly related to the productivity of the underlying wells, which is volatile and cannot be predicted. Further, if oil and/or gas prices decrease, then your investment return may decrease even if production increases. There is a very limited secondary market for fractional mineral rights interests. 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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