1031 Options Similar to Hughes Capital & Why

1031 Options Similar to Hughes Capital & Why

Keith ThompsonPro Member
Investor · Centreville, VA · Member since 2016 · 109 posts · 65 votes

I've read many previous posts on the topic but have seen a few options, SBD and DSTs.

I'm looking for options that approach, match or exceed the advantages I see the Hughes Capital option. Not SOLD on them yet, but I like what I see.

 > Easy to invest

     - High Confidence for closing on the 1031 exchange

     - I failed to complete a 1031 exchange earlier in the year, so I'm skittish

     - I'm expecting another opportunity this year and I ABSOLUTELY want to defer for this one

  > Easy out

     - 90 days notice without penalties or fees (per Investor's Brochure & initial consult)

             I need details here in case I want to exit and take advantage of another opportunity

     - I'll ask about taking the property vs cashing out when I speak to a Senior Advisor (SA) next week

 > Reasonable anticipated rates of return

     - Property titled to me

     - I select from those available

     - I can change to another property if I like

     - Hughes will recommend changing to another property if I'm into a poor performer relative to the Fund.

            I will confirm this with the SA

     - Reinvestment of income or monthly checks (regardless of property status, i.e vacant, squatted, damaged...)

          Unsure how the reinvestment option work with what is anticipated to be about $7%-8%+/- (will ask the SA)

So I see Hughes (or Hughes-like) as a 2nd choice but prior experience forces me to look for a near-certain 2nd option which defers the taxes and positions me in a potential long-term investment with flexibility to exchange out if another better opportunity comes along.

Thoughts?

Options? 


Some BP posts that relate to this topic:

1031 fund like Hughes Capital

by @jim workman (BP didn't resolve the reference)

SBD Housing/Hughes Capital

by @s david gilbert (BP didn't resolve the reference)

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  • Los Angeles · Member since 2020 · 63 posts · 22 votes
    4y

    Not familiar with this structure where you can just switch from one property to the next. I've only seen folks invest with DST's, 1031's into their own property, or via TIC

  • Investor · Vacaville, CA · Member since 2016 · 433 posts · 249 votes
    3y

    This article about Hughes doesn't sound so great. Hopefully you didn't invest with them. :(

    https://renonr.com/2023/05/26/...

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