The devastating wildfires sweeping through California have left countless property and business owners grappling with unimaginable loss. For those who have seen their investment properties or business real estate destroyed, we at Fortitude Investment Group extend our deepest sympathies. We understand the challenges you now face, and we are here to help guide you toward a path of recovery and peace of mind.
For aging property owners nearing retirement, the sudden loss of your assets to condemnation through these wildfires can feel like an insurmountable setback. However, there is hope in possibly leveraging a 1033 exchange in an attempt to turn this tragedy into an opportunity for renewal. By replacing your lost property with a Delaware Statutory Trust (DST), you can streamline the recovery process while positioning yourself for a more secure and stress-free future.
DSTs can offer a powerful solution for those looking to replace condemned investment properties. Accredited investors could benefit from the unique advantages of DSTs.
The Internal Revenue Code (IRC) Section 1033 allows property owners to defer capital gains taxes when replacing properties lost to involuntary conversions, such as destruction caused by wildfires. By reinvesting insurance proceeds into DST investments, affected property owners can avoid immediate tax liabilities, preserving more of their funds for reinvestment.
DSTs can eliminate the complexities of finding, purchasing, and managing a replacement property, offering a hands-off investment option. For those already overwhelmed by loss, this streamlined process can could provide a quicker and more manageable recovery path.
If the lost property involved debt, DST investments provide access to non-recourse financing, meeting debt replacement requirements without the stress of personal liability. This is particularly valuable for property owners who wish to reduce financial risk in uncertain times.
For property owners nearing retirement, DSTs provide a way to transition from active property management to passive income generation. A potentially consistent income stream can help stabilize finances and bring peace of mind after the disruption caused by wildfires.
A 1033 exchange using DSTs is not just a short-term recovery tool; it can align with long-term objectives like retirement planning or diversifying investments. This is an opportunity to rebuild not only what was lost but also to position for a more secure financial future.
For accredited investors who lost investment properties or business real estate to the fires, our team is committed to helping you navigate this difficult time. We can provide guidance on how to complete a 1033 exchange and connect you with DST replacement properties tailored to your needs. Whether your goal is to recover from your losses or transition to retirement, we are here to offer solutions that bring you closer to financial stability and peace of mind.
You are not alone on this journey. Reach out to us today to learn more about how we can help you move forward with confidence. Together, we can turn loss into a new beginning.
To learn more about 1033 Exchanges, download our eBook: 1033 Exchanges: A Tax-Advantaged Strategy for Investors Who Have Lost Property.
Important Disclosures:
*This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum.This material is not to be interpreted as tax or legal advice. IRC Section 1033 is a complex tax concept. Please speak with your own tax and legal advisors for advice/guidance regarding your individual situation. Because investor situations and objectives vary this information is not intended to indicate that an investment is appropriate for or is being recommended to any individual investor. *There are material risks associated with investing in private placements, Delaware Statutory Trusts ("DSTs") and real estate securities including the potential loss of the entire investment principal, illiquidity, tenant vacancies impacting income and revenue, general and real estate market conditions, lack of operating history, interest rate risks, competition, including the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and investors should read the PPM carefully before investing paying special attention to the risk section. *DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million exclusive of primary residence, and/or possessing an annual income of over $200,000, or $300,000 with a spouse and expects the same or greater for the current year) and accredited entities (generally described as an entity owned entirely by accredited investors and/or owning investments in excess of $5 million). Please check with a qualified CPA or attorney to determine if you are accredited. *Diversification does not guarantee returns and does not protect against loss. 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.