1031 exchange investors are in a special situation when it comes to loss severity risk and loss prevention for Delaware Statutory Trust investments is a critical issue. INVIZEN offers an investment loss severity risk prevention program for DST investments that is designed to help answer the age-old question of what happens after the investment is made and the 1031 investor is stuck in the deal for the full 10-year holding period with no options, only sleepless nights worrying whether or not recapture is going to happen this year.
Whether you are looking at multifamily, retail, commercial, senior housing, light industrial or other CRE income-producing property portfolio exchange investments isn’t relevant – what is relevant is whether or not you will have the opportunity to receive the stated yield and be protected to the greatest degree possible from loss severity risk.
Loss severity risk can only be managed by making term risk avoidance the focus, so how does one avoid term risk? Term risk is the risk the market opportunity will deteriorate over the investment holding period to a point wherein the recovery of investment principle is at significant risk. The ideal solution would be to have the investment completely re-underwritten each and every month of the holding period, but underwriting can take months and is way too expensive. This leaves term risk an open question and many 1031 investors have found out the hard way what term risk really is all about when they have received the dreaded notice from the IRS that their gain is now subject to full capital gains tax this year.
INVIZEN offers the ideal solution – an end-to-end underwriting and asset monitoring program that supports the 1031 investment for the entire term. It’s proactive and operates in a real-time environment. Most importantly of all, it’s affordable. This means the ideal solution is now attainable, so if you are looking at a new 1031 exchange investment opportunity you have to ask yourself why you don’t have it.
Find out more by calling INVIZEN today at 832.663.9634.