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Passive Investing thru Commercial Property Trusts ONLINE July 2021 Frank Piscitelli
Wednesday, July 14, 2021, 7:00 PM PDT
Category: Events

Where: ONLINE

Meeting Starts: 7:00pm

REAPS Members Free 
Guests: $25

Registration required for all events CLICK HERE

Guest speaker Frank Piscitelli of Archer Investors

With all the new restrictive Landlord Laws many are ready to be done?  Here is an alternative:

You could 1031 your current rentals into professionally managed institutional quality commercial real estate, through a DST.

What is a DST -Delaware Statutory Trust?

DST Investments are a potential replacement property alternative for accredited investors seeking to defer their capital gains taxes through the use of a 1031 tax deferred exchange or through a straight cash investment. The DST property ownership structure allows the smaller investor to own shares of interest in large, institutional quality, professionally managed commercial property along with other investors, not as limited partners, but as individual owners within a Trust. Each owner will receive their percentage share of cash flow income, tax benefits, and appreciation, if any, of the entire property.

Each DST property asset is professionally managed. It used to be that only large institutional investors such as life insurance companies, pension funds, real estate investment trusts (REITS), college endowments and foundations were able to invest in large, well located, higher credit quality tenant commercial property. Now as a viable 1031 exchange replacement option through a DST, individual investors have the ability to invest in a diversified selection of institutional quality investment property types that they otherwise could not purchase individually. Property types include multifamily apartment communities, office buildings, industrial properties, self storage, assisted living, student housing, multi-tenant retail and single tenant retail properties located throughout the nation.

DST investments currently offer the potential for net cash flow without management responsibilities. DSTs provide you the potential for annual appreciation and depreciation (tax shelter), and have minimum investments as low as $100,000, allowing some investors the benefit of diversification into several properties.

DST ownership can potentially provide investors with a steady stream of income, an added factor of diversification, and eliminate active property management duties. No more fixing toilets, trash, or dealing with difficult tenants.

Any Income comes to you in monthly direct deposits with quarterly and annual reports. From a tax perspective, the income and expense are treated just as any other rental property. In the past, most of our clients have experienced that approximately 50-70% or more of this monthly income has been protected from income tax through depreciation allowance, however, every investor’s tax situation differs, and you should consult your tax authority regarding depreciation tax protection.

Who should consider a DST Investment?

  • Investors who are seeking to defer their capital gains tax but don’t want to be a landlord anymore
  • Investors who are seeking potentially greater cash flow and possible appreciation return potential than they are currently receiving from their real estate investments. Note all investments, including real estate, carry the risk of loss in addition to possibility of gain.
  • Investors who are retiring or seeking a life style change and would like to take a more passive role in their real estate
  • Investors who wish to consolidate their holdings of multiple smaller properties into fewer large properties for ease of management
  • Investors who are seeking to diversify their real estate portfolio into higher quality investment grade real estate, but lack the experience, resources or capital required to manage or acquire larger institutional quality real estate.
  • Investors who are in their 45 day identification period and are seeking a viable replacement property option to satisfy their 1031 exchange or need a backup option in case their primary property falls through
  • Investors who have excess proceeds in their 1031 exchange and rather than pay the capital gains tax, would like to replace it with more property to receive 100% tax deferral.

Frank Piscitelli is a registered representative. He was raised in NYC and obtained a bachelor’s degree from New York University and a law degree from Fordham University School of Law. He was an attorney in the law departments of Metropolitan Life Insurance Company and Mutual Life of New York and addressed insurance, tax, securities and ERISA matters related to insurance contracts issued to fund employer retirement plans. He established and operated a retail financial services business in the San Francisco Bay Area for nearly three decades. He also owned and managed real estate investment properties for seventeen years. He has personally completed 1031 exchanges into Delaware Statutory Trust properties and is eager to share his real world experience with other investment property owners regarding the many benefits of DSTs.

Our Commercial Learning Group:

If you have decided to take the plunge into commercial real estate, this may just be the group you have been looking for. If you are new to commercial investing and want to surround yourself with other members making the same plunge then join us.  The discussions will be focused on multifamily, office, retail, mobile home parks, self storage, etc. Is the grass really greener with commercial? Our commercial group leader, Jeff Hamel, will answer with a definite YES!

 About Our Moderator....

 Jeff Hamel is a full time professional firefighter. Plus a Licensed Contractor since 1991, General Contractor since 2009. Bought his first single-family rental property in 1994. Has been a member of REAPS since 2008. Currently holds rental properties, working on smaller short plat projects, doing flips, and owns a multifamily property and is seeking more multifamily properties.  Jeff enjoys sharing knowledge and contacts. If you have a question, please ask! 

REAPS Members Free 
Guests: $25

Registration required for all events CLICK HERE

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