1031 Properties
Investment Grade Properties
Finding the ideal 1031 property
Our Approach
Engineered1031 can provide a seamless replacement property solution for your 1031 exchange. The 45-day identification period moves very quickly and often creates needless stress. Our experienced team of securities and real estate professionals monitor daily the available investment grade properties in the marketplace. This means that through Engineered1031 you can have access to a fully-vetted, investment grade real estate alternative.
Fractional Interests
One of the greatest benefits of selecting a Delaware Statutory Trust as a 1031 replacement property with as little as $25,000, is being able to select the exact undivided interest which meets the financial requirements of your exchange. You determine how much you want to invest as well as how much debt you want the DST sponsor to assign to you.
Obviously this means that you will be owning the property with other similarly situated investors and you will be receiving your portion of the property rents every month as well as the tax benefits.
Types of Investment Grade Property Alternatives
Delaware Statutory Trusts
A Delaware Statutory Trust investment represents the opportunity to acquire an undivided interest in a trust which owns a portfolio of investment grade properties. The DST can include property types which span virtually every real estate investment genre from multi family to industrial. Rents and tax benefits are distributed ratably to the beneficial owners based upon their interest.
UPREITS and 721 Exchanges
An UPREIT or Section 721 exchange allows an investor to buy into a Delaware Statutory Trust or other similar investment structure, which eventually converts to the equivalent of a stock type of ownership. This provides the investor with the ability to individually manage how their capital gains will be taxed over time as they sell and report the gain based upon their own time table of disbursement.
Net Leased
A Net Leased investment represents the ownership, either individually or together with others in a Tenant in Common structure where the property is leased to a credit tenant. The tenant then, based upon the type of lease is responsible for arranging maintenance, paying municipal taxes, and insurance. The appeal to investors is that don't have to worry about day-to-day administration.
What about replacing your 1031 exchange debt?
One of the important requirements for a 1031 exchange is to replace your debt. A DST removes the headache out of arranging and qualifying for new financing since the DST sponsor has already arranged and qualified for the non-recourse financing for you.
DST provides favorable non-recourse financing.
DST sponsors are established investment real estate firms with strong lender relationships. This allows them to obtain very favorable terms.
DST assigns you a pro-rata share of debt.
The DST qualifies for the loan and always possesses the loan obligation. However, for 1031 purposes they can assign debt to you.
You can now relax because the debt is handled.
Many investors panic when they realize they must qualify for a new loan and be responsible for debt service. That worry is now gone forever!
Speak with an Investment Expert