1031 UPREIT program playbook

The property owners’ dilemma

Many property owners reach a point where they no longer want or need to own their property. Newly- and nearly retired investors may want to eliminate the burden of day-to-day management of a rental home. Those selling a business may no longer need a warehouse or office space.

Selling appreciated property generally results in a large tax bill that they may want to avoid and ends the investment benefits afforded by real estate, such as regular income, tax advantages and growth potential.

1031 UPREITs may offer an attractive solution for accredited investors

1031 UPREITs provide a way for accredited investors to exchange an investment property for income-producing interests in a passive real investment vehicle on a tax-deferred basis.

Advisors can leverage 1031 UPREIT programs to help investors address a specific pain point in their lives and achieve multiple financial goals, including tax-efficiently passing real estate assets to heirs.