PROPERTY INVESTING EXPLAINED

Property Investing Explained: a comprehensive video resource.

Here, you'll find a curated collection of informative videos that will help you with property investing explained. Understand the ins and outs of this powerful investment strategy through our content. Whether you're a seasoned investor or just getting started, our video library offers valuable insights to help you make informed decisions in the world of property investing.

If you can't find the answer you're looking for, contact one of our financial advisors today.

FEATURED VIDEOS

Finding a 1031 Exchange Replacement Property in 2023 | Perch Wealth

Ongoing economic uncertainty resulting from rising interest rates has led to a massive reduction in the number of available properties for those who have invested in a 1031 exchange. As a result, investors are turning to alternative solutions – including Delaware Statutory Trust (DST) investments – to satisfy 1031 exchange requirements.

The current projected commercial market trends have created a challenging environment for 1031 exchange investors who are unable to identify suitable properties that meet both the 1031 exchange criteria and target their investment objectives.

Why Doing a 1031 Exchange may be Smart Financial Planning | Perch Wealth

Invest in Delaware Statutory Trusts, institution quality properties, and interests from $25,000 and up.

Whether you are actively in a 1031 exchange or simply looking to invest in the U.S. market, Perch Wealth can assist. We have partnered with the best investment sponsors across the nation to provide Perch clients immediate access to the highest quality opportunities.

If you are executing a 1031 exchange, we know how difficult it can be to identify within the 45-day identification period. That’s why, for active 1031 exchangers, we always have net leased investment properties and Delaware Statutory Trust (DST) investments available to meet your investment needs.

How Alternative Investments Differ From Traditional Investments | Perch Wealth

Alternative investments run the gamut and can include tangible assets such as precious metals, collectibles like art or antiques, crops and other commodities. They can also be investments in financial assets such as private equity, venture capital, distressed securities, carbon credits, cryptocurrencies, and hedge funds. Real estate, including private equity real estate, is one of the most popular forms of alternative investments today.

Alternative investments have a few key properties that help to distinguish them from traditional investments.

What Investors Need to Know About Investing in Opportunity Zones | Perch Wealth

Opportunity zones offer investors multiple tax benefits, as long as their investments align with the guidelines of the Tax Cuts and Jobs Act of 2017. QOZs offer a unique opportunity for investors to sell a range of investments, including, but not limited to, stocks, bonds, real estate, closely held business assets, cryptocurrency, jewelry, and art.

When the gains realized from the sale of these assets are reinvested into QOFs, investors can potentially benefit from “triple-layer” tax incentives.

How Can You Potentially Use Real Estate as a Hedge Against Inflation? | Perch Wealth

Because investors seek to generate returns that are greater than the rate of inflation, inflation can be detrimental to their money.

When compared to inflation, an investor who keeps her money in a money market account that pays a fixed rate of interest of 2% annually while inflation is running at a rate of 3% per year actually loses 1% of her purchasing power annually. Because the cost of products and services has increased faster than her investment returns over the long term, the investor's capital has less purchasing power overall.

To avoid a situation like this, investors should consider seeking out inflation hedges or asset classes that are uniquely positioned with the potential to perform well in periods of high inflation.

Why Has Real Estate Historically Been a Good Hedge Against Inflation? | Perch Wealth

Real estate has historically been a popular choice as a hedge against inflation due to the fact that rising prices tend to increase resale values over time and because real estate has the potential to generate rental income.

Just as the value of the property increases with inflation, so too does the rent that tenants pay. These increases allow the owner to generate income from an investment property and enable them to keep up with the general rise in prices across the economy.

How Can DSTs Provide Portfolio Diversification? | Perch Wealth

Perch Wealth advises investors. Acquisitions, finance, due diligence, underwriting, and product structuring provide the Perch Wealth team a deep understanding of real estate and alternative investments, structures, and strategies. We offer the greatest alternative investment strategies. Delaware Statutory Trusts (DSTs), private REITs, private equity and debt funds, interval funds, and other private placement syndications are among these investment alternatives.

Tired of Managing Tenants? Get Passive Income From Institutional-Grade Real Estate | Perch Wealth

Those who use a traditional 1031 exchange to trade up to a more valuable asset still have to take care of the property. Instead, those who put the money from their sale into a DST will hand over management to the DST's sponsor, who will look after the investors' real estate holdings. This lets an investor sell a property he or she actively owns and manages and turn the money into 100% passive real estate.

Perch Wealth offers a diversified portfolio of investment opportunities. Our experience and expertise in DSTs allow us to match clients with investment solutions that target their long-term goals. We personalize every strategy based on our client’s investment preferences regarding location and property type.

We have access to several different types of like-kind investment properties across the United States. As a licensed representative, we have the resources to help diversify your portfolio and assist you in becoming a fractional owner in the DST of your choice.

Why Choose DSTs Over a Direct Purchase? | Perch Wealth - 60 Second Real Estate Solutions

Perch Wealth offers a diversified portfolio of investment opportunities. Our experience and expertise in DSTs allow us to match clients with investment solutions that target their long-term goals.

We personalize every strategy based on our client’s investment preferences regarding location and property type. We have access to several different types of like-kind investment properties across the United States.

As a licensed representative, we have the resources to help diversify your portfolio and assist you in becoming a fractional owner in the DST of your choice.

How Can DSTs Help With Your 1031 Exchange? | Perch Wealth | 60 Second Real Estate Solutions

DSTs enable investors to benefit from a 1031 exchange according to Section 1031 of the Internal Revenue Code.

A 1031 exchange is a trade-off in real estate ownership that allows investors to defer capital gains taxes. Section 1031 requires investors to follow a strict timeline when leveraging this opportunity.

Unfortunately, successfully locating and identifying suitable replacement property (or properties) within the 45-day identification window is one of the most challenging issues with a 1031 like-kind exchange.

With our professional guidance, library of resources, and access to properties available nationwide, Perch Wealth might be the solution for your successful 1031 exchange.

Cash Investments Into DSTs | Perch Wealth | 60 Second Real Estate Investing Solutions

Delaware Statutory Trusts are an investment vehicle worth considering 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 consider investing cash in a DST?

DSTs offer many potential 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 as avoiding some of the associated risks of finding a replacement property within a tight timeline.

But potential DST benefits don't end there; there are other potential benefits that may serve investors well as an alternative to both owning real estate outright or investing in the stock market.

How Do Investors Use DSTs? | Perch Wealth | 60 Second Real Estate Solutions

What is a Delaware Statutory Trust, or DST? | Perch Wealth | 60 Second Real Estate Solutions

A Delaware Statutory Trust, or DST, is a legally recognized real estate investment trust in which investors can purchase ownership interest. Investors who own fractional ownership are known as beneficiaries of the trust – they are considered passive investors.

DSTs, unlike many other co-ownership real estate investment structures, are 1031-eligible. Properties held in DSTs that are considered “like-kind” include retail assets, multifamily properties, self-storage facilities, medical offices, and other types of commercial real estate.

Investing in Asset Classes: Senior Housing | Perch Wealth | Investment & Financial Services

Though the United States' birth rate has reached its lowest point in more than a full century, there are plenty of senior citizens in need of quality housing that caters to their specific needs and wants.

The baby boomer generation is the second-largest, coming in just behind the millennials. As a whole, we are an aging society that will require additional senior housing in the decades ahead.

The number of people reaching 75 years of age will climb by an astonishing 48.1% across the 2020s decade, more than triple the growth rate over the past decade (Source: U.S. Census Bureau projections).

For this reason, now might be the best time to invest in senior housing as an asset class.

Assessing the Pros and Cons of Self-Storage Investments | Perch Wealth

For many investors venturing into real estate for the first time, investing in residential property is the most straight-forward and easy to understand. After all, most people have leased or owned a residential property at some point in their life. They can grasp how residential buildings operate.

Yet a narrow focus on residential may cause an investor to lose sight of other, more lucrative opportunities. One of those opportunities is in self-storage, a booming asset class worth an estimated $48 billion and growing.

In this video, we provide a primer on the self-storage industry and discuss some of the pros and cons for investors to consider when weighing a self-storage opportunity.

The Growing Popularity of Manufactured Housing | Perch Wealth Investment Solutions

The nation's lack of affordable housing options has buyers searching for practical, economic alternative to stick-built housing. One increasingly attractive alternative is manufactured housing. Manufactured housing has come a long way since the mobile home parks of the past. The cookie-cutter, one-story "trailers" that once had a negative reputation are giving way to higher-end, manufactured homes that are nearly indistinguishable from their foundation-built peers.

In this video, we look at the growth of the manufactured housing industry, its current demand drivers, and why the sector is drawing the attention of individual owner-occupants and institutional investors alike.

REITs, Funds, TICs, DSTs and Crowdfunding: What's the Difference? | Perch Wealth

With real estate investing becoming more mainstream, some people are left wondering about the differences between the many options before them. Should they invest in a real estate investment trust (REIT), a real estate fund, as a tenant-in-common (TIC), through a Delaware Statutory Trust (DST), or through a real estate crowdfunding platform like Fundrise? All offer co-investment opportunities, but each has its own nuances that may influence how any investor decides to proceed.

In this video, we look at the differences between each of these passive real estate investment vehicles. The potential pros and cons associated with each will be reviewed and we will pay particular attention to some of the potential tax benefits that may or may not be available to investors with each one, including 1031 exchanges.

How Real Estate Investing Can Potentially Protect You From Inflation | Perch Wealth

There is still some debate over the specific cause of rising prices, but it can no longer be denied that basic goods and services are getting more expensive. Inflation is now impacting the life and livelihood of the average American, and, while it remains true that we have experienced a fortunate and extended period of low inflation, it appears as though all good things do, in fact, come to an end -- and now is simply the end of inflation’s record lows.

The implication of high, or rising, inflation costs for investors is that high inflation can impact the value of a future stream of cash flow. For this reason, investors need to achieve returns that are higher than the rate of inflation. This means that now, more than ever, investors should be preparing to adjust their investment strategies moving forward and tactfully plan to hedge against inflation.

Consider Investing in America’s Energy Real Estate in 2022 | Perch Wealth

For the better half of the past two years, most of the attention related to the oil and gas industry has focused on its performance during Covid. Oil prices bottomed out in April 2020, and for a short period, were trading at negative numbers. Yet demand for oil and gas never truly wavered. People were driving less, but in turn, were spending more time at home—creating an uptick in demand for home heating oil and gas. By 2021, any pandemic-induced loss of demand had substantially recovered.

Today, general sentiment among industry experts is that the oil and gas industry will remain a bull market well into 2022 and beyond, the reasons for which we will discuss below. For those looking to diversify their investment portfolios, this could make 2022 an ideal time to consider investing in oil and gas. This is largely driven by a supply-demand imbalance that continues to persist.

How Inflation Affects Investors & What We Can Do About It | Perch Wealth

Inflation, or the gradual rise in the price of goods and services over time, been making its rounds in the headlines of every major business news company. It seems that the U.S.'s historically low inflation rate was finally, and rather dramatically, drawing to a close. Used car prices are reaching record highs, lumber prices are soaring, gas prices have rapidly edged upward, and food costs much more than it did before.

There is still some debate over the specific cause of rising prices, but it can no longer be denied that basic goods and services are getting more expensive.

Inflation is now impacting the life and livelihood of the average American, and while it remains true that we have experienced a fortunate and extended period of low inflation, it appears as though all good things do, in fact, come to an end -- and now is simply the end of inflation’s record lows.

The implication of high, or rising inflation costs for investors is that high inflation can impact the value of a future stream of cash flow.

For this reason, investors need to achieve returns that are higher than the rate of inflation. This means that now, more than ever, investors should be preparing to adjust their investment strategies moving forward and tactfully plan to hedge against inflation.

What is a DST or Delaware Statutory Trust? | Perch Wealth

Delaware Statutory Trusts or DSTs can be the ideal 1031 replacement property alternative.

One of the most difficult issues with a 1031 Like-Kind Exchange is successfully locating and identifying suitable replacement properties within your 45 day identification window. With our professional guidance and access to properties available nationwide, Perch Wealth might be the solution for your successful 1031 exchange.

While many Exchangers are content to use their local real estate professional to find a property in their own area, others desire a more diversified selection of property types and geographic locations. Also, if you desire to transition from an active ownership and management role into a more passive one, fractional ownership of professionally managed investment grade properties might be the opportunity you are seeking.

These interests are only available from licensed representatives, at a firm like Perch Wealth, and you can build a diversified portfolio of several different types of like-kind investment properties (multi-family, healthcare, retail, industrial, etc.).

Some of these properties are offered on a net leased basis, where your tenant is responsible for the expenses, taxes, and maintenance of the property over the term of their lease.

The Benefits of DST Investing VS Direct Ownership

Active real estate investing sounds wonderful, but it may not be right for some people.
On the other hand, an investor can use a 1031 exchange to invest in a Delaware Statutory Trust (DST). This is a great option for those who want to own real estate and avoid the headaches of direct ownership. There are many benefits to doing so compared to doing a 1031 exchange into direct ownership. These benefits include:

- First, an Investor has the ability to move quickly. This is due to the simplicity of being able to roll the proceeds of a sale into DSTs.

- Next, is the simplicity of a transaction. Once an Investor pins down their preferred DST(s), the sponsors can seamlessly close on the exchange as soon as 72 hours.

- Portfolio diversification, investing in multiple DST properties, is a great way to help investors mitigate the risks often associated with directly owning a single property.

- In addition, DSTs allow those conducting a 1031 exchange access to institutional-quality real estate. This is often exclusively reserved for university endowments, pension funds, hedge funds, and billionaires.

- AND lastly, DST sponsors have management responsibility. Investors gain the potential to have passive ownership and collect passive income. On the other hand, those who invest in an independently owned "like-kind" property, gain the responsibility of active ownership and management.

There is an important distinction to be made between active and passive investing. Before making an investment, investors should weigh their options and explore whether the DST approach is right for them.

The Seven Deadly Sins of DST Management | Perch Wealth

Investors are often drawn to DSTs, or Delaware Statutory Trusts, as a vehicle for deferring and possibly avoiding paying capital gains tax on the sale of other investment real estate property. Rather than doing a traditional 1031 exchange from one wholly-owned property to another, a DST allows investors to utilize a 1031 exchange into a DST that is actively managed by an experienced and professional third party. This allows the investor to take a passive, backseat role rather than own real estate that requires their active management.

Investing in a DST can potentially provide a great, hassle-free way for investors to earn passive income on a monthly basis in a diversified portfolio of institutional-grade real estate.

Yet, just as traditional 1031 exchanges have strict rules, so do DST investments. To clarify the rules and regulations pertaining to DSTs, the IRS (ruling 2004-86) introduced the "seven deadly sins" of DSTs. These rules limit the powers of DST trustees and serve as the compulsory guidelines for how DSTs operate.

What Are 1031 Exchanges? | Perch Wealth

What is a 1031 exchange?

Section 1031 of the Internal Revenue Code (from which the term gets its name) allows an investor to reinvest the proceeds from the sale of business or investment property into a like-kind investment, and in doing so, the investor is able to defer paying capital gains tax on the net profits from their sale.

This approach increases an investor's purchasing power because they can use 100% of the equity from the sale to invest in replacement property.

The Perch Path to 1031 Exchanges

What makes Perch Wealth different? Honest, personalized investment solutions that have your best interest and goals in mind.

Preserving Wealth with 1031 Exchanges

Perch Wealth discusses the benefits of 1031 exchanges and how they may help mitigate tax liability and preserve wealth.