Investment Insights

By: Matt McFarland, Senior Vice President, Kay Properties and Investments   Any investor who is considering selling a piece of investment real estate will undoubtedly consider a 1031 Exchange.   A 1031 Exchange refers to the IRS code that allows significant tax advantages for investors.  How? When you sell an investment property and you have a profit, you normally are required to pay capital gains tax. A 1031 Exchange allows you to sell your investment real estate … Read More

By Betty Friant, CCIM, Senior Vice President, Kay Properties & Investments It’s a great feeling when you sell some stock, a piece of real estate or the business you’ve poured your life into for a nice profit that puts a small fortune into your bank account. But then comes the tax bill to take a little bit of the bloom off that rose. It’s downright painful to hand your hard-earned money over to the government … Read More

It’s a good time to assess real estate investment opportunities. By Dwight Kay, CEO & Founder, Kay Properties & Investments, LLC  As we emerge, fortunately, from the pandemic, including the recent Delta variant surge, it’s a good time to assess real estate investment opportunities if you’re looking to reinvest proceeds in a 1031 exchange transaction or seeking to invest cash as part of a diversified* financial portfolio strategy. Here’s how you could build a post-pandemic … Read More

Key Takeaways: What are the four stages of 1031 grief?  Why a DST 1031 expert can help investors avoid major stress with the sale of real estate. What are the most important things to look for when choosing a DST 1031 Advisory Firm?  Participating in a 1031 exchange can be challenging for many investors, which is why finding an experienced and knowledgeable professional is critical for anyone thinking about participating in a 1031 exchange. For … Read More

Some sectors of real estate are emerging from the pandemic in much better shape than others. Investors thinking about real estate need to know where to look. By: Dwight Kay, Founder & CEO of Kay Properties & Investments The COVID-19 pandemic has been kinder to some real estate asset classes than others. Proactive investors can take advantage of opportunities with the potential to build wealth and generate income from investment real estate, particularly tax-advantaged investments. … Read More

At Kay Properties we are very focused on reducing risk wherever possible. We all know that all real estate investments contain the risk of a loss of investment capital and that cash flow and appreciation are not guaranteed. One of the ways that we can help to reduce risk for our clients is by rejecting the higher risk asset classes in the DST marketplace; asset classes like student housing, oil and gas, hotels and senior … Read More

By:  The Kay Properties Team High-net-worth investors sometimes seek alternatives to investing in traditional asset classes like stocks and bonds. Real estate, in general, has historically been a good way for investors to diversify* their holdings with hard assets. Delaware Statutory Trusts (DSTs), Qualified Opportunity Zone Funds, and Real Estate Funds can provide investors with access to real estate investments that can potentially provide monthly distributions, zero management responsibility, diversification and tax benefits not always … Read More

Many investors that come to Kay Properties are looking for a full tax deferment utilizing a like kind exchange. A full tax deferment under IRC Section 1031 consists of buying a replacement property for equal or greater value than that of your relinquished value of the property. For example, if an investor sells their property for a net sales price of $1,000,000 in order to have full tax deferment under Section 1031, the investor has … Read More

By: Kay Properties & Investments When checking off the boxes for your 1031 exchange “to do” checklist, choosing a qualified intermediary should be on top of that list. The IRS requires exchangers to employ a qualified intermediary (aka “QI, “accommodator,” or “facilitator”) to receive the funds upon sale of the exchanger’s property. Section 1031 of the Department of the Treasury Regulations authorizes the QI to receive and hold the funds, advise on compliance matters, and … Read More

By: Matt McFarland, Associate at Kay Properties & Investments, LLC Many times, when researching the Delaware Statutory Trust structure as a potential 1031 exchange option, investors will come across another DST—the Deferred Sales Trust. It can all be very confusing. The Delaware Statutory Trust is an accepted part of the Internal Revenue Code under Revenue Ruling 2004-86 and has provided investors the ability to defer their taxes upon sale of an appreciated piece of investment … Read More

By: Kay Properties and Investments, LLC  So, you’ve decided to invest in income-producing real estate as a way to diversify* your investment portfolio so all your assets are not correlated to the stock market’s performance. Now how do you plan a real estate portfolio to build wealth and withstand a crisis? We’ve learned a great deal from analyzing the market through crises including 9/11, 2008-2009, and the current COVID-19 pandemic. There are no guarantees and … Read More

Please view our story on National Real Estate Investor here. With so many exchanges facing the same deadline, there is very real potential for unintended consequences. As a result of the COVID-19 pandemic the IRS issued Notice 2020-23, which provided a multitude of tax extensions, including 1031 like-kind exchange deadlines for some investors. While the extensions were provided for good reason, there may be unintended consequences if eligible investors all wait to pull the trigger on … Read More

By Chay Lapin, Senior Vice President – Kay Properties and Investments The entire country is experiencing a national lockdown and businesses have been stopped in their tracks.  This has caused many commercial and residential tenants to struggle with the ability to pay rent resulting in a very unknown and difficult time for landlords.  According to the U.S. Department of Labor, over 20,500,000 people are unemployed as of May 8,2020. Also, many publications have noted that … Read More

By: The Kay Properties Team Delaware Statutory Trusts are potentially a great investment vehicle for those accredited investors doing a 1031 exchange, but what some investors don’t realize, is that you can also invest in DSTs on a cash basis. Why invest cash in a DST? DSTs offer many benefits to those doing a 1031 exchange, for example, the ability to defer their capital gains from the sale of their investment real estate as well … Read More

By Alex Madden, Vice President at Kay Properties and Investments For many years Kay Properties has taken the position that we will not offer three asset classes to Investors because they carry too high of risk to investors equity: Hospitality, Senior Care, and Oil & Gas. While other groups have gleefully entered into some of these sectors searching for higher potential returns, Kay Properties has maintained the position that they are much too volatile, and … Read More

By Betty Friant, Senior Vice President at Kay Properties & Investments and The Kay Properties Team Becoming a serious investor involves a significant learning curve. There are many acronyms used in the investment world that you will need to know and understand to find success as an investor. Here are some common acronyms to file away in your long-term memory. DST Delaware Statutory Trust or DST is an entity used to hold title to investment … Read More

By Matthew McFarland, Associate at Kay Properties & Investments and The Kay Properties Team Real Estate has been and remains one of the most powerful estate planning tools.  There are numerous reasons real estate is positioned to be one of the most tax-efficient investment tools that exist— here are just a few: 1) Step-up in Basis: To many investors and tax professionals, this is where the majority of the tax efficiency comes.  A “step-up in … Read More

By: The Kay Properties Team Advisors at Kay Properties & Investments have worked closely with Estate Attorney’s to assist with their client’s legacy planning.  The Delaware Statutory Trust can offer many potential benefits to investors. Below are four reasons estate attorneys incorporate DSTs in their client’s estate planning. Everyone’s situation is unique. All investors should speak with their tax/legal advisor when conducting their own estate planning. 1. Potential tax benefits. According to the Internal Revenue Code … Read More

In the last five years, there are two markets that have had unprecedented growth in comparison to the rest of the country. Both have surpassed several cities on the rankings of “Largest U.S. City Population” held by the US Census Bureau and they now rank at the fourth and fifth largest city, respectively. Houston in on track to surpass Chicago as the third largest city in the country, and Phoenix is following right behind it. … Read More

If you’re an investor considering a 1031 exchange in order to defer the Capital Gains Tax and its friends, chances are you’re looking at a Delaware Statutory Trust or a Tenant in Common to take a step back while your passive investment does the work for you. The real question is, which one is best for you? A DST or a TIC? Please keep in mind that any investment comes with risks. We urge you … Read More

The Economy/Capital Markets: Now that market watchers can exhale with the uptick in the federal funds rate, we can evaluate the state of the market. According to one of the largest medical office investment advisory firms: An important distinction for commercial real estate investors is that the Federal Funds rate is a short-term lending benchmark with limited application in commercial real estate. Commercial real estate lending and valuations, however, are principally based on longer-term rates, … Read More