Paulo Aguilar, CFA, CAIA

Net lease properties (NNN) are often presented as simple: Stable income, long leases and minimal management. And for many investors, that simplicity is the appeal.

In passive real estate investing, most of the risk does not come from the property itself. It comes from the people responsible for running it.

Oil and gas investments are often described as “tax strategies.” That description is incomplete.

A 721 UPREIT, also commonly known as a 721 exchange, is often described as a sophisticated extension of a 1031 exchange. For some investors, it can be.

For many investors, a 721 UPREIT transaction is positioned as an elegant next step after completing a 1031 exchange into a Delaware Statutory Trust.

For most Delaware Statutory Trust (DST) investors, the focus is on completing the 1031 exchange. The exit strategy is often assumed to take care of itself later.

This is one of the most common questions investors ask after selling appreciated real estate: can a 1031 exchange be used to reinvest directly into a REIT?

Mineral rights often surface late in a real estate transaction. Sometimes they are bundled with land. Other times they were severed decades ago and quietly retained by a prior owner. In a 1031 exchange, that distinction matters more than most investors realize.

Interest rate risk is often discussed broadly in real estate, but it takes on a more specific meaning in Delaware Statutory Trust (DST) investments.