Finishing Life Well with Passive Property Income

Author

Petra Capital Properties, LLC

For more information about the author, click to view their website: Petra Capital Properties

Posted on

Dec 19, 2023

Book/Edition

Colorado - Colorado Springs

A Time and Season for Change

With nearly 80 million baby boomers approaching the estate planning phase of their wealth cycle, the focus has shifted from wealth accumulation to wealth distribution. If you are an investor that owns rental property or other types of investment real estate, you are likely in a season of life where it's time to transform highly appreciated and actively managed property into a more secure and reliable form of passive income.  Income that can be used to fund home care, health care, charitable giving, and other lifestyle expenses. 

 According to the US Census Bureau, nearly 60 percent of all residential rental property is held by senior investors. Most properties are older, requiring hands-on management and ongoing capital expenditures. Further, the children don’t want the burden of property management or responsibility for selling properties after the parents have passed. Now, facing a crossroad, older property owners desperately need an exit strategy.

 Section 1031 of the Internal Revenue Code states that any taxpayer who sells property held for investment purposes or used in an active trade or business can defer taxes provided that sales proceeds are reinvested into one or more qualified replacement properties. While tax deferral is a critical component, it does not solve the bigger issue of eliminating property management. Fortunately, there is a solution that combines 1031 tax deferral with diversified property income and simplified wealth transfer.    

 In 2004 the IRS approved a co-ownership structure known as the Delaware Statutory Trust or “DST.” DSTs are pre-structured, cash flowing property interests that allow smaller investors to acquire a fractional interest in larger Class “A” multifamily residential and commercial properties. With low minimum investment requirements, multiple DSTs can be combined to create diversified portfolios with professional third-party management. Sample properties include Class “A” apartments, senior housing, medical and healthcare facilities, industrial properties, self-storage, and U.S. government leased properties. DSTs also offer flexible estate planning strategies for target date liquidity needs and transfer of beneficial ownership to the heirs.       

 As the baby boom generation prepares for the greatest wealth transfer in history, it is critical to preserve assets through strategic tax planning and income protection.  A carefully planned portfolio of DST property investments can compound wealth through 1031 tax deferral and generate passive income for living, giving, and legacy estate planning. Senior real estate investors have worked a lifetime for Return-On-Investment and now it is time to experience Return-On-Life!  Contact Petra Capital Properties to learn how you can unlock financial freedom and finish life well through 1031 tax deferred DST passive property investments. 



Editor’s Note: This article was submitted by Brad Watt, Founder & CEO of Petra Capital Properties. He may be reached at 719-649-7770 or by email at bradwatt@petracapitalproperties.com For more information visit: www.PetraCapitalProperties.com


*Distributions are not guaranteed. Securities offered through Saxony Securities, Inc., Member FINRA/SIPC

  • To view the original version of this article visit petracapitalproperties.com/
  • Seniors Blue Book was not involved in the creation of this content.

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Local Services By This Author

Petra Capital Properties

Real Estate 115 Wilcox Street, Castle Rock, Colorado, 80104

Petra Capital Properties

Financial Services 115 Wilcox Street, Castle Rock, Colorado, 80104

Petra Capital Properties is a mission-focused investment management company, dedicated to serving the needs of its real estate investment clients.  Our investor-centric approach endeavors to put the needs of our clients first by aligning critical investment objectives with personalized real estate solutions.  The result is optimized portfolio construction that delivers on a two-fold mandate of Preserving Capital and Protecting Income.  Petra has a spectrum of customized 1031 solutions that can meet any capital requirements. Multiple portfolio combinations are evaluated to align investment objectives and risk tolerance. Our investors have worked a lifetime to accumulate wealth, and our goal is to preserve and enhance it. Our Mission is Your Success