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  • Questions to Ask When Evaluating DST Offerings

    The raised $1.7 billion through February 2022, putting it on pace to be one of the largest years on record for DST offerings. There is no surprise that the DST market is heating up. As more and more deals become available, investors are looking for ways to defer their capital gains and benefit from the passive nature of DSTs. Although DSTs have been well received by investors as a replacement property option for 1031 exchanges, this type of investment should be more than a “plug-and-play” scenario. With the high velocity of deals and sometimes limited supply available in the market, performing the proper due diligence can help an investor ensure they aren’t exposing themselves to an unnecessary amount of risk.
    In order to help you as an investor determine the good deals from the bad, Realized has provided a list of some of the questions you should consider before investing in a DST.
    What Should You Know Before Investing?
    Although DST offerings pass through several hands before making their way to investors, it is important to have a grasp on exactly what you’re entering into. Knowing and evaluating the details around a potential DST investment may keep you out of an unnecessarily risky offering. Here are some of the questions to ask when evaluating a DST offering:

    Who is the Sponsor and what is their track record? Has the Sponsor had experience with this type of investment? How has the Sponsor managed investments in different points of the real estate cycle? Although the internet is helpful in researching a Sponsor’s background, every offering memorandum includes the Sponsor’s prior performance. However, past performance does not guarantee future results.
     
    Are the projected financials reasonable? Returns are projected and based off a Sponsor’s own models and assumptions as to how a particular property will perform. These projections try to predict rent growth and occupancy levels, and there is typically no context to their underwriting. Referring to market reports and appraisals is a good first step in determining whether a deal’s financial projections are reasonable.
     
    What do the fees look like? Almost every Sponsor will take certain fees such as an acquisition fee, a disposition fee, and an asset management fee. Assess the competitiveness of these fees to determine if they will detract from your return.
     
    What is the intended exit strategy? As DSTs have gained popularity in the 1031 space, Sponsors have developed new ways to exit an investment. Sponsors utilize both third-party sales and 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.

  • Invest in Your Business Infrastructure Today, Don’t Wait for Tomorrow

    Invest in Your Business Infrastructure Today, Don’t Wait for Tomorrow

    In today’s market with inflation at a multi-decade high and escalating interest rates many businesses want to “wait and see”, rather than “adapt and act”. We believe if you aren’t moving forward, you are moving backwards, and now is the perfect time to reinvest into your business and improve your 1031 exchange infrastructure – if you don’t, know that others will. 
    Exchange Manager ProSM, the only patented 1031 exchange web-enabled workflow, is proving its worth time and time again as Qualified Intermediaries (QI) across the country continue to license and implement the software in their own organizations.
    Features of Exchange Manager ProSM include:

    Standardized workflow with embedded controls to ensure exchange compliance
    Single data entry to reduce data redundancies and potential for errors
    Automated document creation and execution
    Calendar-view of all exchanges, with automated reminders to ensure timeliness
    Central repository for all exchange documents with robust reporting options

    Exchange Manager ProSM QI clients are experiencing the following since implementing the revolutionary 1031 workflow technology:

    30-50% reduction in time spent on mundane, tedious administrative tasks
    Increased efficiencies with up to 35% reduction in processing times
    Reduced operating expense by replacing costly and typically antiquated software programs including client databases, electronic signature applications, and file storage systems

    Exchange Manager ProSM delivers on the expectations of today’s exchanger, including real-time access to exchange data, timely completion of requests, and the ability to handle last minute closings without skipping a beat. As a QI, don’t just meet, but strive to exceed these elevated expectations, Exchange Manager ProSM makes that possible.
    With 2023 just around the corner and the first quarter being the most active for 1031 exchanges historically, now is the time to act on improving and scaling your QI processes.

  • Invest in Your Business Infrastructure Today, Don’t Wait for Tomorrow

    Invest in Your Business Infrastructure Today, Don’t Wait for Tomorrow

    In today’s market with inflation at a multi-decade high and escalating interest rates many businesses want to “wait and see”, rather than “adapt and act”. We believe if you aren’t moving forward, you are moving backwards, and now is the perfect time to reinvest into your business and improve your 1031 exchange infrastructure – if you don’t, know that others will. 
    Exchange Manager ProSM, the only patented 1031 exchange web-enabled workflow, is proving its worth time and time again as Qualified Intermediaries (QI) across the country continue to license and implement the software in their own organizations.
    Features of Exchange Manager ProSM include:

    Standardized workflow with embedded controls to ensure exchange compliance
    Single data entry to reduce data redundancies and potential for errors
    Automated document creation and execution
    Calendar-view of all exchanges, with automated reminders to ensure timeliness
    Central repository for all exchange documents with robust reporting options

    Exchange Manager ProSM QI clients are experiencing the following since implementing the revolutionary 1031 workflow technology:

    30-50% reduction in time spent on mundane, tedious administrative tasks
    Increased efficiencies with up to 35% reduction in processing times
    Reduced operating expense by replacing costly and typically antiquated software programs including client databases, electronic signature applications, and file storage systems

    Exchange Manager ProSM delivers on the expectations of today’s exchanger, including real-time access to exchange data, timely completion of requests, and the ability to handle last minute closings without skipping a beat. As a QI, don’t just meet, but strive to exceed these elevated expectations, Exchange Manager ProSM makes that possible.
    With 2023 just around the corner and the first quarter being the most active for 1031 exchanges historically, now is the time to act on improving and scaling your QI processes.

  • Invest in Your Business Infrastructure Today, Don’t Wait for Tomorrow

    Invest in Your Business Infrastructure Today, Don’t Wait for Tomorrow

    In today’s market with inflation at a multi-decade high and escalating interest rates many businesses want to “wait and see”, rather than “adapt and act”. We believe if you aren’t moving forward, you are moving backwards, and now is the perfect time to reinvest into your business and improve your 1031 exchange infrastructure – if you don’t, know that others will. 
    Exchange Manager ProSM, the only patented 1031 exchange web-enabled workflow, is proving its worth time and time again as Qualified Intermediaries (QI) across the country continue to license and implement the software in their own organizations.
    Features of Exchange Manager ProSM include:

    Standardized workflow with embedded controls to ensure exchange compliance
    Single data entry to reduce data redundancies and potential for errors
    Automated document creation and execution
    Calendar-view of all exchanges, with automated reminders to ensure timeliness
    Central repository for all exchange documents with robust reporting options

    Exchange Manager ProSM QI clients are experiencing the following since implementing the revolutionary 1031 workflow technology:

    30-50% reduction in time spent on mundane, tedious administrative tasks
    Increased efficiencies with up to 35% reduction in processing times
    Reduced operating expense by replacing costly and typically antiquated software programs including client databases, electronic signature applications, and file storage systems

    Exchange Manager ProSM delivers on the expectations of today’s exchanger, including real-time access to exchange data, timely completion of requests, and the ability to handle last minute closings without skipping a beat. As a QI, don’t just meet, but strive to exceed these elevated expectations, Exchange Manager ProSM makes that possible.
    With 2023 just around the corner and the first quarter being the most active for 1031 exchanges historically, now is the time to act on improving and scaling your QI processes.

  • UPDATE: IRS announces tax relief for victims of Hurricane Ian

    UPDATE: IRS announces tax relief for victims of Hurricane Ian

    Due to Hurricane Ian, the IRS has issued extensions of the 45-day and 180-day deadlines for the entire states of Florida, South Carolina, and North Carolina.
     
    The Disaster Date is September 23, 2022. The General postponement date is February 15, 2023.
     
    Affected Taxpayers are defined as those individuals who live, and businesses whose principal place of business is located in the covered disaster area (anywhere in the state of Florida, South Carolina, or North Carolina). Affected taxpayers are entitled to relief regardless of where the relinquished property or replacement property is located. Affected Taxpayers may choose either the General Postponement relief under Section 6 or the Alternative relief under Section 17 of Rev. Proc. 2018-58.
    Option 1: (Section 6: Affected Taxpayers only.) Any 45-day deadline or 180-day deadlines (for either a forward or reverse exchange) that falls on or after the disaster date is postponed to the general postponement date. The general postponement applies regardless of the date the Relinquished Property was transferred (or the parked property acquired by the EAT) and is available to Affected Taxpayers regardless of whether their exchange began before or after the Disaster Date.
    Option 2: (Section 17 Alternative: Available to Affected Taxpayers and other taxpayers who have difficulty meeting the exchange deadlines because of the disaster.) Option 2 is only available if the relinquished property was transferred (or the parked property was acquired by the EAT) on or before the Disaster Date. Any 45-day or 180-day deadline that falls on or after the Disaster Date is extended to the longer of (1) 120 days from such deadline; or (2) the General postponement date.
     

  • UPDATE: IRS announces tax relief for victims of Hurricane Ian

    UPDATE: IRS announces tax relief for victims of Hurricane Ian

    Due to Hurricane Ian, the IRS has issued extensions of the 45-day and 180-day deadlines for the entire states of Florida, South Carolina, and North Carolina.
     
    The Disaster Date is September 23, 2022. The General postponement date is February 15, 2023.
     
    Affected Taxpayers are defined as those individuals who live, and businesses whose principal place of business is located in the covered disaster area (anywhere in the state of Florida, South Carolina, or North Carolina). Affected taxpayers are entitled to relief regardless of where the relinquished property or replacement property is located. Affected Taxpayers may choose either the General Postponement relief under Section 6 or the Alternative relief under Section 17 of Rev. Proc. 2018-58.
    Option 1: (Section 6: Affected Taxpayers only.) Any 45-day deadline or 180-day deadlines (for either a forward or reverse exchange) that falls on or after the disaster date is postponed to the general postponement date. The general postponement applies regardless of the date the Relinquished Property was transferred (or the parked property acquired by the EAT) and is available to Affected Taxpayers regardless of whether their exchange began before or after the Disaster Date.
    Option 2: (Section 17 Alternative: Available to Affected Taxpayers and other taxpayers who have difficulty meeting the exchange deadlines because of the disaster.) Option 2 is only available if the relinquished property was transferred (or the parked property was acquired by the EAT) on or before the Disaster Date. Any 45-day or 180-day deadline that falls on or after the Disaster Date is extended to the longer of (1) 120 days from such deadline; or (2) the General postponement date.
     

  • UPDATE: IRS announces tax relief for victims of Hurricane Ian

    UPDATE: IRS announces tax relief for victims of Hurricane Ian

    Due to Hurricane Ian, the IRS has issued extensions of the 45-day and 180-day deadlines for the entire states of Florida, South Carolina, and North Carolina.
     
    The Disaster Date is September 23, 2022. The General postponement date is February 15, 2023.
     
    Affected Taxpayers are defined as those individuals who live, and businesses whose principal place of business is located in the covered disaster area (anywhere in the state of Florida, South Carolina, or North Carolina). Affected taxpayers are entitled to relief regardless of where the relinquished property or replacement property is located. Affected Taxpayers may choose either the General Postponement relief under Section 6 or the Alternative relief under Section 17 of Rev. Proc. 2018-58.
    Option 1: (Section 6: Affected Taxpayers only.) Any 45-day deadline or 180-day deadlines (for either a forward or reverse exchange) that falls on or after the disaster date is postponed to the general postponement date. The general postponement applies regardless of the date the Relinquished Property was transferred (or the parked property acquired by the EAT) and is available to Affected Taxpayers regardless of whether their exchange began before or after the Disaster Date.
    Option 2: (Section 17 Alternative: Available to Affected Taxpayers and other taxpayers who have difficulty meeting the exchange deadlines because of the disaster.) Option 2 is only available if the relinquished property was transferred (or the parked property was acquired by the EAT) on or before the Disaster Date. Any 45-day or 180-day deadline that falls on or after the Disaster Date is extended to the longer of (1) 120 days from such deadline; or (2) the General postponement date.
     

  • Doubling Down on 1031 at the 2022 FEA Annual Conference

    Doubling Down on 1031 at the 2022 FEA Annual Conference

    Industry Education

    Accruit was honored to help educate our peers in the 1031 industry by presenting in both boot camps at this year’s conference. “Our team is absolutely recognized as leaders in the 1031 industry – we are the go-to QI for learning, solutions, and setting standards,” said Brent Abrahm, President & CEO of Accruit.
    David Gorenberg co-presented the 1031 Boot Camp to roughly 60 attendees. In addition to instructing the boot camp, David presented two General Session topics including Identification Pickles and Real-World Ethics for the QI. “Over the past fifteen years, I have presented approximately 30 sessions at FEA Annual Conferences. With each presentation I grow as a Qualified Intermediary, either because I am teaching new material or because attendees ask questions I haven’t yet faced. I was honored to deliver three presentations this year, with many first-time attendees, and each presentation furthered my understanding of Section 1031, and my ability to translate that information to people of differing backgrounds,” said David.

     

    Martin Edwards and Matthew Douglas presented the Reverse Exchanges Boot Camp to approximately 50 attendees. The duo covered the different variations of parking transactions in relative detail over the course of the three-hour presentation, and fielded questions from a highly engaged audience mostly made up of other QIs who were interested in either deepening their knowledge of parking exchanges or preparing to start handling those transactions themselves. One boot camp attendee indicated that while she has attended various conferences that discussed reverse exchanges, for the first time she understood the subject after attending this particular boot camp. As a first time FEA attendee, Matthew was proud to represent Accruit and instruct on parking deals, which he spends most of his professional time handling. “It was a pleasure to take what I’ve learned working at Accruit, and with Marty specifically, and present it in a way that our audience seemed to understand and appreciate,” stated Matthew.

     
    Award Recognition

    We are proud to announce that members of Accruit were recognized for their 1031 industry involvement and awarded the two coveted FEA awards for 2022.
    Martin Edwards was awarded the Margo McDonnell Certified Exchange Specialist® Perpetual Award at the FEA Annual Convention. Nominated by peers, the award recognizes someone who has gone “above and beyond” and made significant contributions that benefit the 1031 exchange industry. Martin has over 35 years’ experience in the 1031 industry, he is a current member and past board member of the FEA. His contributions include lecturing at the Illinois State Bar Association, multiple FEA Annual Conventions amongst many others.
    Max Hansen received the 2022 President’s Award. The award recognizes an individual who has demonstrated outstanding leadership in their efforts on FEA’s behalf to save and grow the 1031 exchange industry. With over four decades in the 1031 industry, Max’s contributions are numerous, some of the more notable include a former FEA president and former co-chair of the Government Affairs Committee (GAC) of the FEA. He still serves on the GAC and actively promotes the benefits of 1031 exchanges for taxpayers and the economy as a whole.

     
    Revolutionizing 1031 – The Industry’s Only Patented 1031 Workflow Software (SaaS)
     

    Accruit Technologies was proud to showcase Exchange Manager ProSM, the patented 1031 exchange workflow software, at the FEA Conference Exhibit Hall. Members of the 1031 industry are asking for technology solutions, and our team was able to deliver by conducting various demonstrations of Exchange Manager ProSM, the one-stop-solution for Qualified Intermediaries.

     
    All Business, But Also Fun

    Accruit Technologies wrapped up the FEA Annual Conference by hosting an intimate After Party, with our friends at Capital One, for our existing QI SaaS Clients, prospective clients, and existing partners.
    “It was a great opportunity to meet several of our SaaS clients and hear what they like about Exchange Manager ProSM,,” stated Mark Mayfield, Vice President, Service Development & Delivery.
    We’d like to thank the FEA for such a great event that will continue to push the 1031 industry forward. Marita Kazos, of the Accruit Technologies Client Success Team reflected on the experience, “To me the FEA Annual Conference is like the 1031 Exchange Oscars, and I am so thankful I was there.”
     
    Until Next Year! 

     
     

     

  • Doubling Down on 1031 at the 2022 FEA Annual Conference

    Doubling Down on 1031 at the 2022 FEA Annual Conference

    Industry Education

    Accruit was honored to help educate our peers in the 1031 industry by presenting in both boot camps at this year’s conference. “Our team is absolutely recognized as leaders in the 1031 industry – we are the go-to QI for learning, solutions, and setting standards,” said Brent Abrahm, President & CEO of Accruit.
    David Gorenberg co-presented the 1031 Boot Camp to roughly 60 attendees. In addition to instructing the boot camp, David presented two General Session topics including Identification Pickles and Real-World Ethics for the QI. “Over the past fifteen years, I have presented approximately 30 sessions at FEA Annual Conferences. With each presentation I grow as a Qualified Intermediary, either because I am teaching new material or because attendees ask questions I haven’t yet faced. I was honored to deliver three presentations this year, with many first-time attendees, and each presentation furthered my understanding of Section 1031, and my ability to translate that information to people of differing backgrounds,” said David.

     

    Martin Edwards and Matthew Douglas presented the Reverse Exchanges Boot Camp to approximately 50 attendees. The duo covered the different variations of parking transactions in relative detail over the course of the three-hour presentation, and fielded questions from a highly engaged audience mostly made up of other QIs who were interested in either deepening their knowledge of parking exchanges or preparing to start handling those transactions themselves. One boot camp attendee indicated that while she has attended various conferences that discussed reverse exchanges, for the first time she understood the subject after attending this particular boot camp. As a first time FEA attendee, Matthew was proud to represent Accruit and instruct on parking deals, which he spends most of his professional time handling. “It was a pleasure to take what I’ve learned working at Accruit, and with Marty specifically, and present it in a way that our audience seemed to understand and appreciate,” stated Matthew.

     
    Award Recognition

    We are proud to announce that members of Accruit were recognized for their 1031 industry involvement and awarded the two coveted FEA awards for 2022.
    Martin Edwards was awarded the Margo McDonnell Certified Exchange Specialist® Perpetual Award at the FEA Annual Convention. Nominated by peers, the award recognizes someone who has gone “above and beyond” and made significant contributions that benefit the 1031 exchange industry. Martin has over 35 years’ experience in the 1031 industry, he is a current member and past board member of the FEA. His contributions include lecturing at the Illinois State Bar Association, multiple FEA Annual Conventions amongst many others.
    Max Hansen received the 2022 President’s Award. The award recognizes an individual who has demonstrated outstanding leadership in their efforts on FEA’s behalf to save and grow the 1031 exchange industry. With over four decades in the 1031 industry, Max’s contributions are numerous, some of the more notable include a former FEA president and former co-chair of the Government Affairs Committee (GAC) of the FEA. He still serves on the GAC and actively promotes the benefits of 1031 exchanges for taxpayers and the economy as a whole.

     
    Revolutionizing 1031 – The Industry’s Only Patented 1031 Workflow Software (SaaS)
     

    Accruit Technologies was proud to showcase Exchange Manager ProSM, the patented 1031 exchange workflow software, at the FEA Conference Exhibit Hall. Members of the 1031 industry are asking for technology solutions, and our team was able to deliver by conducting various demonstrations of Exchange Manager ProSM, the one-stop-solution for Qualified Intermediaries.

     
    All Business, But Also Fun

    Accruit Technologies wrapped up the FEA Annual Conference by hosting an intimate After Party, with our friends at Capital One, for our existing QI SaaS Clients, prospective clients, and existing partners.
    “It was a great opportunity to meet several of our SaaS clients and hear what they like about Exchange Manager ProSM,,” stated Mark Mayfield, Vice President, Service Development & Delivery.
    We’d like to thank the FEA for such a great event that will continue to push the 1031 industry forward. Marita Kazos, of the Accruit Technologies Client Success Team reflected on the experience, “To me the FEA Annual Conference is like the 1031 Exchange Oscars, and I am so thankful I was there.”
     
    Until Next Year! 

     
     

     

  • Doubling Down on 1031 at the 2022 FEA Annual Conference

    Doubling Down on 1031 at the 2022 FEA Annual Conference

    Industry Education

    Accruit was honored to help educate our peers in the 1031 industry by presenting in both boot camps at this year’s conference. “Our team is absolutely recognized as leaders in the 1031 industry – we are the go-to QI for learning, solutions, and setting standards,” said Brent Abrahm, President & CEO of Accruit.
    David Gorenberg co-presented the 1031 Boot Camp to roughly 60 attendees. In addition to instructing the boot camp, David presented two General Session topics including Identification Pickles and Real-World Ethics for the QI. “Over the past fifteen years, I have presented approximately 30 sessions at FEA Annual Conferences. With each presentation I grow as a Qualified Intermediary, either because I am teaching new material or because attendees ask questions I haven’t yet faced. I was honored to deliver three presentations this year, with many first-time attendees, and each presentation furthered my understanding of Section 1031, and my ability to translate that information to people of differing backgrounds,” said David.

     

    Martin Edwards and Matthew Douglas presented the Reverse Exchanges Boot Camp to approximately 50 attendees. The duo covered the different variations of parking transactions in relative detail over the course of the three-hour presentation, and fielded questions from a highly engaged audience mostly made up of other QIs who were interested in either deepening their knowledge of parking exchanges or preparing to start handling those transactions themselves. One boot camp attendee indicated that while she has attended various conferences that discussed reverse exchanges, for the first time she understood the subject after attending this particular boot camp. As a first time FEA attendee, Matthew was proud to represent Accruit and instruct on parking deals, which he spends most of his professional time handling. “It was a pleasure to take what I’ve learned working at Accruit, and with Marty specifically, and present it in a way that our audience seemed to understand and appreciate,” stated Matthew.

     
    Award Recognition

    We are proud to announce that members of Accruit were recognized for their 1031 industry involvement and awarded the two coveted FEA awards for 2022.
    Martin Edwards was awarded the Margo McDonnell Certified Exchange Specialist® Perpetual Award at the FEA Annual Convention. Nominated by peers, the award recognizes someone who has gone “above and beyond” and made significant contributions that benefit the 1031 exchange industry. Martin has over 35 years’ experience in the 1031 industry, he is a current member and past board member of the FEA. His contributions include lecturing at the Illinois State Bar Association, multiple FEA Annual Conventions amongst many others.
    Max Hansen received the 2022 President’s Award. The award recognizes an individual who has demonstrated outstanding leadership in their efforts on FEA’s behalf to save and grow the 1031 exchange industry. With over four decades in the 1031 industry, Max’s contributions are numerous, some of the more notable include a former FEA president and former co-chair of the Government Affairs Committee (GAC) of the FEA. He still serves on the GAC and actively promotes the benefits of 1031 exchanges for taxpayers and the economy as a whole.

     
    Revolutionizing 1031 – The Industry’s Only Patented 1031 Workflow Software (SaaS)
     

    Accruit Technologies was proud to showcase Exchange Manager ProSM, the patented 1031 exchange workflow software, at the FEA Conference Exhibit Hall. Members of the 1031 industry are asking for technology solutions, and our team was able to deliver by conducting various demonstrations of Exchange Manager ProSM, the one-stop-solution for Qualified Intermediaries.

     
    All Business, But Also Fun

    Accruit Technologies wrapped up the FEA Annual Conference by hosting an intimate After Party, with our friends at Capital One, for our existing QI SaaS Clients, prospective clients, and existing partners.
    “It was a great opportunity to meet several of our SaaS clients and hear what they like about Exchange Manager ProSM,,” stated Mark Mayfield, Vice President, Service Development & Delivery.
    We’d like to thank the FEA for such a great event that will continue to push the 1031 industry forward. Marita Kazos, of the Accruit Technologies Client Success Team reflected on the experience, “To me the FEA Annual Conference is like the 1031 Exchange Oscars, and I am so thankful I was there.”
     
    Until Next Year!