Do a 1031 Exchange and buy REITs ???

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
teelainen
Posts: 198
Joined: Fri Feb 01, 2019 1:17 am

Do a 1031 Exchange and buy REITs ???

Post by teelainen » Tue Mar 05, 2019 10:43 am

If someone owns a portfolio of real estate investment properties, is there any legal way to do a 1031 Exchange and buy REITs?

This person is tired of dealing with tenants and property maintenance.

Thanks.

glennherwig
Posts: 20
Joined: Wed Oct 24, 2018 7:52 pm

Re: Do a 1031 Exchange and buy REITs ???

Post by glennherwig » Tue Mar 05, 2019 11:03 am

I believe it has to be an exchange for real estate. What about farmland? Illinois has some good land. You could hire a farm manager and not have to deal with tenants.

knightrider
Posts: 617
Joined: Fri Jun 06, 2014 11:20 am

Re: Do a 1031 Exchange and buy REITs ???

Post by knightrider » Tue Mar 05, 2019 3:55 pm

glennherwig wrote:
Tue Mar 05, 2019 11:03 am
I believe it has to be an exchange for real estate. What about farmland? Illinois has some good land. You could hire a farm manager and not have to deal with tenants.
I thought it also has to be for the same type of real estate, i.e rental property for rental property. Not sure if farmland is same?

KyleAAA
Posts: 7738
Joined: Wed Jul 01, 2009 5:35 pm
Contact:

Re: Do a 1031 Exchange and buy REITs ???

Post by KyleAAA » Tue Mar 05, 2019 4:02 pm

There is apparently a convoluted way to do it. I'd speak with a tax attorney.

https://www.realized1031.com/blog/rolli ... ty-to-reit

User avatar
unclescrooge
Posts: 4167
Joined: Thu Jun 07, 2012 7:00 pm

Re: Do a 1031 Exchange and buy REITs ???

Post by unclescrooge » Tue Mar 05, 2019 4:03 pm

They can 1031 into a private REIT.

Look up DST REITs for more info.

Stormbringer
Posts: 889
Joined: Sun Jun 14, 2015 7:07 am

Re: Do a 1031 Exchange and buy REITs ???

Post by Stormbringer » Wed Mar 06, 2019 10:17 am

My understanding is that you can do a 1031 exchange into an Umbrella Partnership REIT (UPREIT) although I've never seriously looked into it.
"Compound interest is the most powerful force in the universe." - Albert Einstein

Topic Author
teelainen
Posts: 198
Joined: Fri Feb 01, 2019 1:17 am

Re: Do a 1031 Exchange and buy REITs ???

Post by teelainen » Thu Mar 07, 2019 12:34 am

unclescrooge wrote:
Tue Mar 05, 2019 4:03 pm
They can 1031 into a private REIT.

Look up DST REITs for more info.
unclescrooge, have you purchased a DST REIT before?

User avatar
unclescrooge
Posts: 4167
Joined: Thu Jun 07, 2012 7:00 pm

Re: Do a 1031 Exchange and buy REITs ???

Post by unclescrooge » Thu Mar 07, 2019 12:52 am

teelainen wrote:
Thu Mar 07, 2019 12:34 am
unclescrooge wrote:
Tue Mar 05, 2019 4:03 pm
They can 1031 into a private REIT.

Look up DST REITs for more info.
unclescrooge, have you purchased a DST REIT before?
I have not. But I am looking into it.

Post Reply