All Forum Posts by: Brandon Bruckman

180k or more can be purchased to complete the exchange (less any permissible selling expenses).  You would need to acquire the same amount of debt or add cash.  

In reading your post, you might have a bigger problem.  You can't 1031 exchange flips.  The property has to be held for investing purposes, not for sale.  

DST, TIC, GP/LP - its all syndication. Same rules apply to underwriting and sponsor track record.

There are good deals, bad deals, good sponsors and bad sponsors.  

You have to do your homework.  Just like you would for direct ownership.  

The structure isn't the issue.  Its the real estate inside of it and who is running it.  

After you have invested, there is zero time spent managing the DST. You could spend time reading quarterly updates, but that's about it.

Investors should spend as much time as it takes to get comfortable with the investment upfront.  This can be time consuming.  Reviewing the PPM and associated due diligence from your financial advisor is the minimum.  

Your financial advisor should be doing the heaving lifting for you to make this process as easy as possible.  

What Dave said. 

I'd also be curious how much you have left in the exchange account.  What's the tax implication if you do not complete a full exchange?  

 This is possible, you will need to select the fund however.  @Dave Foster has the process and options described correctly.  

With an opportunity zone fund, the tax bill will come due at the end of 2026.  You can not defer your current tax bill forever.  If you hold the fund for 10 years, the gain on the investment is tax free.

The question you need to answer is can I make more money in 10 years investing my gain in the fund (plus another investment with your gains) vs performing the 1031 exchange investing in a replacement property?

Hope this helps. 

You could do a Qualified Opportunity Zone Fund (QOZ).  Invest the gain and keep the basis.  Use that basis to invest back into your properties (or do whatever you want with it).  

You do not need to perform a 1031 exchange to utilize QOZs.  Only invest the gain by 180 days after the sale of your property.

You would owe tax on the gain by the end of 2026.  Hopefully, the QOZ is making returns to cover that tax bill.  

Check out Eric Trost at SVA.  He has helped a lot of our real estate clients.  

The syndication would need to be structured as a tenant in common agreement or Delaware statutory trust to qualify as replacement property for a 1031 exchange. 

Most syndications are structured as a partnership (GP/LP).  These agreements can not be used in a 1031 exchange.  

Assuming the syndication is structured properly, there is no stated amount of time or restrictions on how many deals you can invest in.  

Delaware Statutory Trusts or Opportunity Zone Funds all involve investing in real estate, just in a different way.  You could look at Deferred Sales Trusts.  We just started looking into the structure, so I'm not comfortable with it yet.  However, it appears you can invest in whatever asset class you like.  

Is the bank aware they would be extending a loan against the new properties / DSTs? I've never seen a HELOC or personal loan against a DST.