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Apartment Building

SOLE OWNERSHIP

VS

DST OWNERSHIP

Total ownership of just one property

Fractional ownership of a portfolio of properties

All the burdens of management

None of the burdens of management

Investment amount must cover entire purchase price

Investment amount may be customized

Finding and inspecting property within 45 days may present challenges.

Investors close escrow independently in as little as 1-3 days. Totally complete due diligence package available, including appraisals, environmental, all risk factors disclosed.

Additional liability and lender recourse

Limited liability and non-recourse financing at institutional rates

Options often limited by location or asset class

Diversified across the nation and by asset class

Limited to one individual's investment capital

Combines investment capital of multiple investors

*Ownership comparisons may not be all-encompassing. Individuals should review all information, including risks, before investing.

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This is for informational purposes only, does not constitute individual investment advice, and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance. Because investor situations and objectives vary this information is not intended to indicate suitability for any individual investor.

 

There are material risks associated with investing in DST properties and real estate securities including liquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal.

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​Risks associated with 1031 exchange- A 1031 exchange has an identification period of 45 days from the sale of the relinquished property to identify a potential replacement property or properties depending on the value of the previous property. To defer all capital gains tax, you must reinvest the entire net proceeds from the sale of the relinquished property into the replacement property and acquire debt on the new property that is equal to or greater than the debt on the property that was just sold and relinquished.

 

Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

 

Institutional-grade properties generally refer to a property of sufficient size and stature to merit attention from large national or international investors, and typically have the characteristic of high-quality assets in major markets and at price points beyond the reach of individual investors and smaller partnerships.

 

This site is published for residents of the United States only. Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of the services referenced on this site are available in every state and through every advisor listed. For additional information, please contact Bart Harrison at 205-533-2052 or email bart@1031legacy.com.

 

Securities offered through Concorde Investment Services, LLC (CIS), member FINRA SIPC. Legacy 1031 is independent of CIS.

To access Concorde’s Form Customer Relationship Summary (CRS), please click here.

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