Fortitude's Insights

Daniel Raupp

Daniel Raupp

Under Daniel’s guidance since 2000, Fortitude Investment Group has guided clients into over $1 billion worth of securitized real estate investment offerings directly and indirectly, in both the DSTs for 1031 Exchanges and REITs. Daniel directs a range of strategic initiatives in the firm to successfully leverage core competencies in tax efficient investing, alternative investments, and operational excellence to create customer value.

Have a commercial real estate investment question?

Give us a call to discuss your investment options at 844-4DST1031 (844 437-8103)

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Recent Posts

Why Opportunity Zone Investments Will Not Replace Section 1031 Exchanges

Posted by Daniel Raupp on Jan 10, 2019 1:15:00 PM

About a month ago, one of our highly respected colleagues and a good friend of the Fortitude Investments Team Matthew Rappaport, Esq, LLM (an attorney in tax planning, structuring & compliance) shared a very informative article that we felt would be of value to our loyal blog subscribers. Mathew has helped us in numerous 1031 Exchanges and is a thought leader in the complexities of the American tax system.

In the following blog post, we shared a small excerpt from Matthew's original article on LinkedIn. In his article, Matthew explains the reasons why Opportunity Zone Investments Will Not Replace Section 1031 Exchanges. Here is a small portion of Mathew's original article on the Opportunity Program.

On November 18th, 2018, Matthew wrote:

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Topics: 1031 Exchange, Opportunity Zones

Fortitude Investment Group, LLC Announces Another Successful 1031 Real Estate Exchange Utilizing the DST

Posted by Daniel Raupp on Sep 26, 2018 12:56:00 PM
Fortitude Investment Group, LLC Is Proud to Announce Another Successful Full Cycle 1031 Real Estate Exchange Utilizing the Delaware Statutory Trust, DST, for Their High Net Worth Accredited Investors 
Press Release - Sep 21, 2016 08:21 EDT

New York, NY, September 21, 2016 ( - Co-Founders Daniel P. Raupp, Jeffrey A Kiesnoski and Jon Paul Cirelli of Fortitude Investment Group successfully facilitated a Full Cycle 1031 Real Estate Exchange utilizing the Delaware Statutory Trust, DST, for a high net worth, accredited investor with the recent announcement from Inland Private Capital Corporation disposition of a FedEx ground facility in Zionsville, Indiana.

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Topics: Delaware Statutory Trust, 1031 Exchange

Disaster Relief IRS Issued Tax Relief & 1031 Extensions

Posted by Daniel Raupp on Sep 1, 2018 12:47:00 PM

Deadlines for completing a 1031 Exchange are straightforward. Once you close on the sale of your old property, you have 45 days to locate the new property that you want to purchase and 180 days to complete the purchases of the new property.

However, when a catastrophic event that affects large numbers of people, such as hurricanes, tornados, wildfires, floods and terrorist actions occur, the government may issue tax relief extensions, which also may extend your 1031 deadlines.

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Topics: 1031 Exchange, Tax Relief

Understanding Depreciation Recapture for your 1031 Exchange

Posted by Daniel Raupp on Jul 6, 2018 1:16:00 PM

Depreciation recapture is a significant factor in participating in a like-kind exchange. While capital-gains tax rates are currently at historical lows, tax rules require you to recapture the portion of the gain on the sale that relates to allowable depreciation over the period the asset was held.  Additionally, you must recapture it at a higher tax rate (typically 25%).

For the purpose of discussion, the depreciation recapture rules assumes that:

(a) your regular marginal income tax bracket is greater than 15%, and

(b) the real estate sold is the only business asset sold by you in the tax year of the sale

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Topics: 1031 Exchange, Depreciation Recapture

Dos and Don'ts of 1031 Exchanges

Posted by Daniel Raupp on Jun 28, 2018 10:39:00 AM
1031 exchange is a practice named after a section of the IRS tax code. It allows taxpayers to potentially defer capital gains taxes from the sale of a property if they meet certain conditions. Those conditions can be complicated, tricky and confusing.To make sure you’re on the right path, pay close attention to these do’s and don’ts as you set up a 1031 exchange.
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Topics: 1031 Exchange

Fortitude Investment Group, LLC. Executes Record Investment for a Family’s 1031 Exchange into a DST Real Estate Portfolio

Posted by Daniel Raupp on Dec 11, 2017 5:48:11 PM

One might think that passive real estate investments are for the less sophisticated and smaller real estate owners and investors.  They would be wrong. 

Daniel P. Raupp and his team at Fortitude Investment Group, LLC have just set an industry record by facilitating an investment of $176,000,000.00 worth of real estate proceeds from the sale of a portfolio held by a very successful and real estate savvy family who needed to complete a complex 1031 Exchange. 

This individual transaction had multiple moving parts and involved more than twenty entities and six branches within the family.

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Topics: 1031 Exchange, Delaware Statutory Trust

Condemned Property and a 1031 Exchange

Posted by Daniel Raupp on Jun 24, 2017 12:15:00 PM

If a property will be condemned in the future and the landlord will receive a condemnation award, should they do a 1031 exchange with the proceeds and buy a new property?

Keep in mind, the 1031 option may be restrictive. With the 1031 exchange, the landowner cannot take possession of the money; instead the money must go directly to a Qualified Intermediary (QI) to qualify for a 1031 exchange. If the condemnation award check is made out to the landowner, a 1031 exchange is no longer an option.

Additionally, once he gets the condemnation award, he has 45 days to identify a property. The landowner is locked into the subject property and then has 135 days to close. In other words, he has only 180 days to identify and close on a property.

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Topics: 1031 Exchange, 1033 Exchange, Delaware Statutory Trust

Why High Net Worth Real Estate Investors Are Choosing DST Investments for Their Real Estate Exchange

Posted by Daniel Raupp on Nov 7, 2016 4:36:00 PM

New York, NY, November 17, 2016 ( - Fortitude Investment Group, LLC. was founded by Daniel P Raupp, Jeffrey A. Kiesnoski and Jon Paul Cirelli.  Our firm is a fully independent alternative investment firm focused on educating our clientele in tax-advantaged and tax-efficient, asset-backed investment vehicles.

Our philosophy for accredited investors looking for 100% passive, institutional-quality replacement properties is based on preservation of capital and predictable tax-efficient income investment vehicles. 

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Topics: 1031 Exchange, Delaware Statutory Trust

What You Need to Know About 1031 Exchanges

Posted by Daniel Raupp on Nov 2, 2016 11:24:01 AM
While Section 1031 of the tax code is little known, it is starting to make its way into the lexicon of investors across the country.  Usually, they will say, "let’s 1031 that building." However, Section 1031 is not just for real estate – even though it is where it is most commonly used.  So, what is a 1031 and why do you need to know about 1031 exchanges?  This article will take a deeper look and try to give you some more insight on this fast-growing tax-free investment program.

In its simplest terms, a 1031 or a 1031 exchange is a swap of one asset for another. 

Unlike a sale, which is a swap for cash, a 1031 is a ‘"like-kind exchange" which is also known as a Starker. The beauty of these exchanges is that they limit the amount of tax due.  This means that under the eyes of the IRS, you will not recognize any capital gains from the transaction.  As you can see, this can be a powerful tool to defer taxes as you can roll the gains from one investment into another.  This can continue until you sell the final asset.

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Topics: 1031 Exchange, Depreciation Recapture, Delaware Statutory Trust

Cash Investments MORE – Multiple Owner Real Estate

Posted by Daniel Raupp on Feb 26, 2016 11:39:00 AM

High net worth, accredited investors looking for an investment alternative to traditional stocks, bonds, and mutual funds may want to consider investing in commercial real estate through a DST (Delaware Statutory Trust) or LLC with multiple investors.  The investments are known as MOREs – Multiple Owner Real Estate, and they are typically diversified portfolios of properties, such as retail, office and residential. They enable investors to select the private placement program that best suits their needs.

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Topics: Delaware Statutory Trust, Multiple Owner Real Estate

DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million dollars exclusive of primary residence or $200,000 income individually/$300,000 jointly of the last three years) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity please verify with your CPA and Attorney. There are risks associated with investing in real estate and Delaware Statutory Trust (DST) properties including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies and illiquidity. Diversification does not guarantee profits or guarantee protection against losses. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA). Fortitude Investment Group is independent of CIS, CAM and CIA.

About This Blog

With over 100+ years of combined experience facilitating 1031 exchanges, including the largest 1031 exchange utilizing DST’s in our industry, we are your trusted partners in helping you achieve success.  We believe that education and service matter, and we are committed to providing our clients with the resources required to facilitate the entire exchange process.

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