You have a capital gain and you want to protect that gain from capital gain taxes by undertaking a 1031 exchange for a beneficiary interest in a Delaware Statutory Trust investment opportunity. The challenge is not whether these investments are available – they are in droves. The challenge is that the typical DST property or portfolio of properties is based upon the hope that capitalization rates 10 years from now will be low enough for the 1031 investors to recover 100% of their principle investment and maintain their favorable tax treatment. Loss severity risk for DSTs is a very real and very big problem.
That’s a pretty tall order given the fact that a 10-year holding period all but guarantees that a significant market disruption is going to happen over that period of time and that would leave the 1031 investor exposed to loss of principle and recapture by the IRS. This is the reality INVIZEN sees in every DST transaction we underwrite. The difference is what can be done about this risk to minimize and/or potentially eliminate it from happening.
INVIZEN offers the only end-to-end underwriting and asset monitoring solution designed specifically to deal with term default risk – the risk that includes exposure to market disruptions, as well as many other common subjective financial investment risks. The INVIZEN Real-Time Status Asset Care Protection Program (or “RTS”) and INVIZEN Real-Time Underwriting Program (or “RTU”) work hand-in-hand to create the conditions necessary for proactive monitoring and underwriting that happen in a real-time environment. Best of all, the RTS and RTU are very affordable because of our proprietary advancements in technology and analytics.
Why doesn’t your sponsor offer this protection? Why would you consider investing in a transaction that doesn’t offer this additional level of performance assurance protection? Find out more by contacting INVIZEN today at 832.663.9634.