ANTHONY J. GULLO

Management-free investment strategies are not one-size-fits-all. Depending on an investor’s objectives, desired level of involvement, liquidity needs, tax considerations, and accreditation status, different structures may be more appropriate than others.

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Common Reasons Investors Consider Management-Free Real Estate Investments
Examples may include:

• Retirement or succession planning

• Reducing management responsibilities

• Simplifying a real estate portfolio

• Relocating away from investment properties

• Seeking passive income opportunities

• Completing a 1031 Exchange

• Diversifying by asset type or geography

• Transitioning from active ownership to passive ownership

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DST, DST-to-UPREIT, and QOZ/QOF

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What is a Delaware Statutory Trust (DST)?

A Delaware Statutory Trust (DST) is a real estate ownership structure that allows accredited investors to own a fractional interest in institutional-quality real estate, such as multifamily, industrial, medical, self-storage, or retail properties. DSTs are professionally managed, allowing investors to maintain real estate exposure without the day-to-day responsibilities associated with direct property ownership.

 

DST interests generally qualify as replacement property for 1031 Exchange purposes, making them a popular option for investors seeking to defer taxes while transitioning from actively managed real estate. DSTs may also provide access to larger, diversified properties that might otherwise be difficult for an individual investor to acquire directly.

 

Whether seeking portfolio diversification, passive income potential, or a simplified approach to real estate ownership, accredited investors often utilize DSTs as part of a long-term investment strategy.

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What is a DST-to-UPREIT strategy?

Certain DST sponsors offer DST-to-UPREIT programs that may become available at the conclusion of a DST’s holding period. In these programs, a DST property may be acquired by an affiliated Real Estate Investment Trust (REIT), allowing investors the opportunity to exchange their DST interest for REIT operating partnership units through a transaction commonly referred to as a 721 Exchange.

 

This tax-deferred exit strategy may provide investors with increased diversification, potential liquidity opportunities over time, and continued passive ownership. However, after completing a 721 Exchange into REIT operating partnership units, investors generally forfeit the ability to complete future 1031 Exchanges with that investment. For investors seeking long-term tax deferral, simplified real estate ownership, and an eventual transition away from the 1031 Exchange cycle, a DST-to-UPREIT strategy may serve as a valuable wealth preservation tool. Investors should carefully review the risks, limitations, and tax implications associated with any DST-to-UPREIT program.

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What is a Qualified Opportunity Zone (QOZ) / Qualified Opportunity Fund (QOF)?

A Qualified Opportunity Fund (QOF) is an investment vehicle that allows accredited investors to reinvest eligible capital gains into real estate or business projects located within government-designated Qualified Opportunity Zones (QOZs). These investments were created to encourage long-term economic development and investment in designated communities while offering certain tax benefits under current law.

 

QOFs may provide benefits such as the deferral of eligible capital gains and the potential exclusion of appreciation generated within the investment if applicable holding period requirements and other program requirements are satisfied.

 

For investors seeking tax-efficient growth opportunities and passive ownership, QOFs may provide an attractive alternative investment strategy.

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How he helps

​Anthony J. Gullo, acting in his capacity as a Direct Participation Programs Representative holding FINRA Series 22 and 63 licenses, assists accredited investors in evaluating passive real estate investment opportunities, including Delaware Statutory Trusts (DSTs), DST-to-UPREIT strategies, and Qualified Opportunity Funds (QOFs). These investment structures may provide benefits such as professional management, portfolio diversification, tax-deferral opportunities, and reduced day-to-day ownership responsibilities. Whether your objective is to defer taxes, simplify property ownership, diversify your holdings, or pursue long-term wealth preservation, he provides education, guidance, and access to investment solutions designed to align with your financial goals and risk tolerance.

 

Direct Participation Programs offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC, headquartered at 3909 Research Park Drive, Suite 200, Ann Arbor, MI 48108. ​

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FINRA's BrokerCheck

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Disclaimer: Anthony J. Gullo, acting in his capacity as a Direct Participation Programs Representative, does not provide brokerage or consulting services to clients in exchange transactions where R. J. GULLO 1031 SERVICES, LLC serves as the client's qualified intermediary.

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