Development

Category: Miscellaneous

  • What is an Accredited Investor?

    What is an Accredited Investor?

    The Securities and Exchange Commission (SEC) was created after the 1929 financial crisis brought chaos to US investors. The commission’s primary goal is to protect unsophisticated investors from participating in investment opportunities that they might not understand or from taking on too much risk without adequate information. Accordingly, it created a category of investor referred to as accredited, which means the individual (or entity) is eligible to invest in a broader range of investment options than others. In order to be considered accredited, an investor must meet at least one of the following qualifications:

    Have an annual income of over $200,000 ($300,000 with a partner) for at least two previous years and an expectation of the same for the current year.
    Have a personal or joint net worth of over $1 million, excluding the value of the primary residence. For entities, the minimum net worth is $5 million.
    Be an investment professional holding an appropriate license such as Series 7, Series 65, or Series 62.

    Investors who qualify by these criteria can be accredited for most restricted offerings. However, it’s important to note that the company or entity offering the investment decides which investors qualify. While these are among the common means of being accredited, the

  • What is an Accredited Investor?

    What is an Accredited Investor?

    The Securities and Exchange Commission (SEC) was created after the 1929 financial crisis brought chaos to US investors. The commission’s primary goal is to protect unsophisticated investors from participating in investment opportunities that they might not understand or from taking on too much risk without adequate information. Accordingly, it created a category of investor referred to as accredited, which means the individual (or entity) is eligible to invest in a broader range of investment options than others. In order to be considered accredited, an investor must meet at least one of the following qualifications:

    Have an annual income of over $200,000 ($300,000 with a partner) for at least two previous years and an expectation of the same for the current year.
    Have a personal or joint net worth of over $1 million, excluding the value of the primary residence. For entities, the minimum net worth is $5 million.
    Be an investment professional holding an appropriate license such as Series 7, Series 65, or Series 62.

    Investors who qualify by these criteria can be accredited for most restricted offerings. However, it’s important to note that the company or entity offering the investment decides which investors qualify. While these are among the common means of being accredited, the

  • What is an Accredited Investor?

    What is an Accredited Investor?

    The Securities and Exchange Commission (SEC) was created after the 1929 financial crisis brought chaos to US investors. The commission’s primary goal is to protect unsophisticated investors from participating in investment opportunities that they might not understand or from taking on too much risk without adequate information. Accordingly, it created a category of investor referred to as accredited, which means the individual (or entity) is eligible to invest in a broader range of investment options than others. In order to be considered accredited, an investor must meet at least one of the following qualifications:

    Have an annual income of over $200,000 ($300,000 with a partner) for at least two previous years and an expectation of the same for the current year.
    Have a personal or joint net worth of over $1 million, excluding the value of the primary residence. For entities, the minimum net worth is $5 million.
    Be an investment professional holding an appropriate license such as Series 7, Series 65, or Series 62.

    Investors who qualify by these criteria can be accredited for most restricted offerings. However, it’s important to note that the company or entity offering the investment decides which investors qualify. While these are among the common means of being accredited, the

  • What is a Passive Investment?

    What is a Passive Investment?

    The idea of passive income is prevalent—which is logical since the term refers to earning money without actually doing anything. That sounds too good to be true, and it is, but some income-producing activities require more involvement than others. For example, working at a job is one way to earn active income. On the other hand, investing can be either DSTs are legal entities structured under Delaware laws that allow investors to participate in the ownership of commercial property as a beneficiary of the trust with a proportional share of the potential earnings. A Sponsor creates the trust, identifies and acquires the assets, and distributes profits. However, due to the lack of liquidity and other risks, DST participation is open only to accredited investors.
    Any investor can invest in a Real Estate Investment Trust (REIT). Realized to learn more about their due diligence and portfolio construction methodologies.
     
     
    This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor.
    Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation.
    All real estate investments have the potential to lose value during the life of the investment. All financed real estate investments have the potential for foreclosure.
    All investments have an inherent level of risk. The value of your investment will fluctuate with the value of the underlying investments. You could receive back less than you initially invested and there is no guarantee that you will receive any income.
    Programs that depend on tenants for their revenue may suffer adverse consequences because of any financial difficulties, bankruptcy or insolvency of their tenants.
    No public market for DSTs currently exists, and one may never exist. DST programs are speculative and suitable only for Accredited Investors who do not anticipate a need for liquidity or can afford to lose their entire investment.
    There is no guarantee that the investment objectives of any program will be achieved.
    The actual amount and timing of distributions paid by REIT programs is not guaranteed and may vary. There is no guarantee that investors will receive distributions or a return of their capital. These programs can give no assurance that it will be able to pay or maintain distributions, or that distributions will increase over time.
    Hypothetical examples shown are for illustrative purposes only.
    A REIT is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.
    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.
    There is no guarantee you will receive any income.
    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.

  • What is a Passive Investment?

    What is a Passive Investment?

    The idea of passive income is prevalent—which is logical since the term refers to earning money without actually doing anything. That sounds too good to be true, and it is, but some income-producing activities require more involvement than others. For example, working at a job is one way to earn active income. On the other hand, investing can be either DSTs are legal entities structured under Delaware laws that allow investors to participate in the ownership of commercial property as a beneficiary of the trust with a proportional share of the potential earnings. A Sponsor creates the trust, identifies and acquires the assets, and distributes profits. However, due to the lack of liquidity and other risks, DST participation is open only to accredited investors.
    Any investor can invest in a Real Estate Investment Trust (REIT). Realized to learn more about their due diligence and portfolio construction methodologies.
     
     
    This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor.
    Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation.
    All real estate investments have the potential to lose value during the life of the investment. All financed real estate investments have the potential for foreclosure.
    All investments have an inherent level of risk. The value of your investment will fluctuate with the value of the underlying investments. You could receive back less than you initially invested and there is no guarantee that you will receive any income.
    Programs that depend on tenants for their revenue may suffer adverse consequences because of any financial difficulties, bankruptcy or insolvency of their tenants.
    No public market for DSTs currently exists, and one may never exist. DST programs are speculative and suitable only for Accredited Investors who do not anticipate a need for liquidity or can afford to lose their entire investment.
    There is no guarantee that the investment objectives of any program will be achieved.
    The actual amount and timing of distributions paid by REIT programs is not guaranteed and may vary. There is no guarantee that investors will receive distributions or a return of their capital. These programs can give no assurance that it will be able to pay or maintain distributions, or that distributions will increase over time.
    Hypothetical examples shown are for illustrative purposes only.
    A REIT is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.
    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.
    There is no guarantee you will receive any income.
    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.

  • What is a Passive Investment?

    What is a Passive Investment?

    The idea of passive income is prevalent—which is logical since the term refers to earning money without actually doing anything. That sounds too good to be true, and it is, but some income-producing activities require more involvement than others. For example, working at a job is one way to earn active income. On the other hand, investing can be either DSTs are legal entities structured under Delaware laws that allow investors to participate in the ownership of commercial property as a beneficiary of the trust with a proportional share of the potential earnings. A Sponsor creates the trust, identifies and acquires the assets, and distributes profits. However, due to the lack of liquidity and other risks, DST participation is open only to accredited investors.
    Any investor can invest in a Real Estate Investment Trust (REIT). Realized to learn more about their due diligence and portfolio construction methodologies.
     
     
    This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor.
    Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation.
    All real estate investments have the potential to lose value during the life of the investment. All financed real estate investments have the potential for foreclosure.
    All investments have an inherent level of risk. The value of your investment will fluctuate with the value of the underlying investments. You could receive back less than you initially invested and there is no guarantee that you will receive any income.
    Programs that depend on tenants for their revenue may suffer adverse consequences because of any financial difficulties, bankruptcy or insolvency of their tenants.
    No public market for DSTs currently exists, and one may never exist. DST programs are speculative and suitable only for Accredited Investors who do not anticipate a need for liquidity or can afford to lose their entire investment.
    There is no guarantee that the investment objectives of any program will be achieved.
    The actual amount and timing of distributions paid by REIT programs is not guaranteed and may vary. There is no guarantee that investors will receive distributions or a return of their capital. These programs can give no assurance that it will be able to pay or maintain distributions, or that distributions will increase over time.
    Hypothetical examples shown are for illustrative purposes only.
    A REIT is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.
    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.
    There is no guarantee you will receive any income.
    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.

  • Interview with Energy 1031 Specialist, Wolf Hanschen

    Wolf Hanschen is a consultant and 1031 specialist for Peregrine Energy Partners, also located in Dallas.
    Hanschen began his career more than a decade ago in the energy industry and has since served in a variety of roles. During his career, he has raised over $400 million in the broker-dealer and RIA community, specializing in 1031 exchange investments out of real estate and into producing oil and gas properties.
    With oil prices currently low and real estate prices high, would now be a good time to sell out of real estate and invest in oil and gas?
    This is one of the first times I can remember when investors have the opportunity to sell an asset at a peak and buy into another asset at a trough. Real estate prices have been heading up for the last few years while oil and gas prices have done the exact opposite over the same time period. While some investors might shy away from the “negative headlines” surrounding energy, many feel that this is the best time to invest in a commodity which, at roughly $40/barrel, is experiencing its lowest pricing environment in the past 15 years.
    Are oil prices finally in a position to rise in 2016, or is another year of low prices ahead of us?
    Prices for everything eventually boils down to the simple economics of supply and demand. When new technology allowed the U.S. to double our oil and natural gas production in just a few short years, the market was flooded with excess supply and prices subsequently fell as a result. In the latter half of this year, operators in the “fringe areas” of exploration across the country have ceased their drilling activities which, over time, helps correct the supply/demand imbalance at which point we should see prices start to move higher.
    With a high concentration of investors focusing efforts on reducing their tax exposure, have you seen many real estate investors 1031 exchange into your product?
    We tend to see about two-thirds of our clients invest though 1031 exchanges and one-third through traditional cash accounts. Almost everyone completing a 1031 into our energy offerings are investors who have seen significant increases in their real estate assets and are looking to take advantage of this seller’s market but don’t necessarily want all of the proceeds to go right back into traditional real estate.
    The fact that real estate is like-kind to royalty interests represents a huge opportunity for investors to diversify their funds between hard assets and passive investments such as royalty interests.  Can you elaborate?
    Energy royalties have been considered “like-kind” to other forms of real property (real estate) for over 40 years but most investors aren’t aware that it’s even an option. Royalty rights are a deeded form of property (just like traditional brick and mortar real estate), only in this case our clients own the land UNDER the surface.
    Keep in mind that royalty owners have nothing whatsoever to do with the drilling side of the energy business, but instead represent the “lucky landowners” who own property on which oil and natural gas are discovered. Royalty owners, therefore, don’t have any of the risk and/or liabilities found on the drilling side but instead get to enjoy a percentage of the gross income that’s derived from production on their property, paid by professional oil and gas operators each month.
    By including royalties as part of a 1031 exchange, investors are typically able to increase their weighted annualized return and spread their portfolio risk across multiple asset classes. Royalties also provide clients with a natural hedge against inflation as well as additional tax benefits that might not be available through traditional real estate options.
    In your experience why is it important for a client to hire a QI to handle the exchange versus a local attorney or CPA?
    There are more rules and regulations involved in a 1031 exchange than almost any other type of investment I have seen. Having a qualified intermediary who focuses on nothing but 1031 exchanges can make all of the difference in the world to ensure a successful tax deferral. Which types of properties qualify for a like-kind exchange, what method should be used for identification purposes, and what key deadlines need to be kept in mind are all aspects of a 1031 that a trained QI will know.
    I have seen several unfortunate examples in which clients chose not to engage a qualified exchange expert and ended up having their 1031 disqualified by the IRS because they failed to follow the exact guidelines of an exchange.

  • Interview with Energy 1031 Specialist, Wolf Hanschen

    Wolf Hanschen is a consultant and 1031 specialist for Peregrine Energy Partners, also located in Dallas.
    Hanschen began his career more than a decade ago in the energy industry and has since served in a variety of roles. During his career, he has raised over $400 million in the broker-dealer and RIA community, specializing in 1031 exchange investments out of real estate and into producing oil and gas properties.
    With oil prices currently low and real estate prices high, would now be a good time to sell out of real estate and invest in oil and gas?
    This is one of the first times I can remember when investors have the opportunity to sell an asset at a peak and buy into another asset at a trough. Real estate prices have been heading up for the last few years while oil and gas prices have done the exact opposite over the same time period. While some investors might shy away from the “negative headlines” surrounding energy, many feel that this is the best time to invest in a commodity which, at roughly $40/barrel, is experiencing its lowest pricing environment in the past 15 years.
    Are oil prices finally in a position to rise in 2016, or is another year of low prices ahead of us?
    Prices for everything eventually boils down to the simple economics of supply and demand. When new technology allowed the U.S. to double our oil and natural gas production in just a few short years, the market was flooded with excess supply and prices subsequently fell as a result. In the latter half of this year, operators in the “fringe areas” of exploration across the country have ceased their drilling activities which, over time, helps correct the supply/demand imbalance at which point we should see prices start to move higher.
    With a high concentration of investors focusing efforts on reducing their tax exposure, have you seen many real estate investors 1031 exchange into your product?
    We tend to see about two-thirds of our clients invest though 1031 exchanges and one-third through traditional cash accounts. Almost everyone completing a 1031 into our energy offerings are investors who have seen significant increases in their real estate assets and are looking to take advantage of this seller’s market but don’t necessarily want all of the proceeds to go right back into traditional real estate.
    The fact that real estate is like-kind to royalty interests represents a huge opportunity for investors to diversify their funds between hard assets and passive investments such as royalty interests.  Can you elaborate?
    Energy royalties have been considered “like-kind” to other forms of real property (real estate) for over 40 years but most investors aren’t aware that it’s even an option. Royalty rights are a deeded form of property (just like traditional brick and mortar real estate), only in this case our clients own the land UNDER the surface.
    Keep in mind that royalty owners have nothing whatsoever to do with the drilling side of the energy business, but instead represent the “lucky landowners” who own property on which oil and natural gas are discovered. Royalty owners, therefore, don’t have any of the risk and/or liabilities found on the drilling side but instead get to enjoy a percentage of the gross income that’s derived from production on their property, paid by professional oil and gas operators each month.
    By including royalties as part of a 1031 exchange, investors are typically able to increase their weighted annualized return and spread their portfolio risk across multiple asset classes. Royalties also provide clients with a natural hedge against inflation as well as additional tax benefits that might not be available through traditional real estate options.
    In your experience why is it important for a client to hire a QI to handle the exchange versus a local attorney or CPA?
    There are more rules and regulations involved in a 1031 exchange than almost any other type of investment I have seen. Having a qualified intermediary who focuses on nothing but 1031 exchanges can make all of the difference in the world to ensure a successful tax deferral. Which types of properties qualify for a like-kind exchange, what method should be used for identification purposes, and what key deadlines need to be kept in mind are all aspects of a 1031 that a trained QI will know.
    I have seen several unfortunate examples in which clients chose not to engage a qualified exchange expert and ended up having their 1031 disqualified by the IRS because they failed to follow the exact guidelines of an exchange.

  • Interview with Energy 1031 Specialist, Wolf Hanschen

    Wolf Hanschen is a consultant and 1031 specialist for Peregrine Energy Partners, also located in Dallas.
    Hanschen began his career more than a decade ago in the energy industry and has since served in a variety of roles. During his career, he has raised over $400 million in the broker-dealer and RIA community, specializing in 1031 exchange investments out of real estate and into producing oil and gas properties.
    With oil prices currently low and real estate prices high, would now be a good time to sell out of real estate and invest in oil and gas?
    This is one of the first times I can remember when investors have the opportunity to sell an asset at a peak and buy into another asset at a trough. Real estate prices have been heading up for the last few years while oil and gas prices have done the exact opposite over the same time period. While some investors might shy away from the “negative headlines” surrounding energy, many feel that this is the best time to invest in a commodity which, at roughly $40/barrel, is experiencing its lowest pricing environment in the past 15 years.
    Are oil prices finally in a position to rise in 2016, or is another year of low prices ahead of us?
    Prices for everything eventually boils down to the simple economics of supply and demand. When new technology allowed the U.S. to double our oil and natural gas production in just a few short years, the market was flooded with excess supply and prices subsequently fell as a result. In the latter half of this year, operators in the “fringe areas” of exploration across the country have ceased their drilling activities which, over time, helps correct the supply/demand imbalance at which point we should see prices start to move higher.
    With a high concentration of investors focusing efforts on reducing their tax exposure, have you seen many real estate investors 1031 exchange into your product?
    We tend to see about two-thirds of our clients invest though 1031 exchanges and one-third through traditional cash accounts. Almost everyone completing a 1031 into our energy offerings are investors who have seen significant increases in their real estate assets and are looking to take advantage of this seller’s market but don’t necessarily want all of the proceeds to go right back into traditional real estate.
    The fact that real estate is like-kind to royalty interests represents a huge opportunity for investors to diversify their funds between hard assets and passive investments such as royalty interests.  Can you elaborate?
    Energy royalties have been considered “like-kind” to other forms of real property (real estate) for over 40 years but most investors aren’t aware that it’s even an option. Royalty rights are a deeded form of property (just like traditional brick and mortar real estate), only in this case our clients own the land UNDER the surface.
    Keep in mind that royalty owners have nothing whatsoever to do with the drilling side of the energy business, but instead represent the “lucky landowners” who own property on which oil and natural gas are discovered. Royalty owners, therefore, don’t have any of the risk and/or liabilities found on the drilling side but instead get to enjoy a percentage of the gross income that’s derived from production on their property, paid by professional oil and gas operators each month.
    By including royalties as part of a 1031 exchange, investors are typically able to increase their weighted annualized return and spread their portfolio risk across multiple asset classes. Royalties also provide clients with a natural hedge against inflation as well as additional tax benefits that might not be available through traditional real estate options.
    In your experience why is it important for a client to hire a QI to handle the exchange versus a local attorney or CPA?
    There are more rules and regulations involved in a 1031 exchange than almost any other type of investment I have seen. Having a qualified intermediary who focuses on nothing but 1031 exchanges can make all of the difference in the world to ensure a successful tax deferral. Which types of properties qualify for a like-kind exchange, what method should be used for identification purposes, and what key deadlines need to be kept in mind are all aspects of a 1031 that a trained QI will know.
    I have seen several unfortunate examples in which clients chose not to engage a qualified exchange expert and ended up having their 1031 disqualified by the IRS because they failed to follow the exact guidelines of an exchange.

  • America’s looming macro-succession crisis: Boomers, Xers, Millennials and the future of your workplace

    I was recently re-reading a Seattle Times story from a couple years back on how