Reef Point LLC Advises Deferred Sales Trusts for Threatened 1031 Real Estate Exchanges

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Reef Point LLC is reaching out to the community to discuss how a Deferred Sales Trust (DST) can help mitigate the impact of the COVID-19 health emergency on the real estate market.

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A Deferred Sales Trust is a proprietary strategy that has been used for over 20 years. It has withstood IRS and FINRA scrutiny...

The New York Real Estate News has reported that the marketplace where lenders sell mortgages on commercial real estate has ground to a halt as traders try to assess risk amid the COVID-19 pandemic. Real estate lenders are curbing new loan generation and even canceling loans currently in process. As a result, 1031 Exchanges are not looking like a viable financial strategy at the moment, leaving many individuals at a loss.

If a 1031 Exchange fails, the property seller will owe substantial capital gains taxes, and investors must seek alternatives to protect their capital. According to Reef Point LLC, however, investors in the middle of a 1031 Exchange can utilize a Deferred Sales Trust to mitigate the impact on their estate.

Reef Point LLC published a comprehensive article where they outline how a Deferred Sales Trust can be used to rescue a failed 1031 Exchange. It discusses the most common concerns that investors have when approaching a DST, thoroughly explaining the steps that can be taken over the course of a transition. "While these are trying times for everyone, with some cunning and bold strategies, we can make the most out of this situation," says Greg Reese, founder of Reef Point LLC. "We have made use of this strategy to protect our clients from similar situations, proving that you can indeed use the Deferred Sales Trust to rescue a failed 1031 Exchange."

Greg Reese states that a Deferred Sales Trust is a proprietary strategy that has been used for over 20 years. It has withstood IRS and FINRA scrutiny and has successfully helped close over 3,000 transactions without a single adverse finding or consequence.

A DST offers two main advantages over a 1031 Exchange; the foremost being that it allows beneficiaries to invest their capital without being limited to purchasing real estate. Additionally, there is no need to identify the DST within the 45-day identification period, allowing the investor to make a more calculated decision without being rushed.

"All-around, a DST is a better deal than a 1031 Exchange, although it is important to remember that the success of this lies in the experience and knowledge of whomever you choose to make this transition," explains Reese. "At Reef Point LLC, we are an authorized national Trustee for Deferred Sales Trusts, as well as nationally-recognized experts on capital gains mitigation in real estate. We guarantee that we can rescue your failed 1031 Exchange and successfully transition into a more permissive DST, allowing you to safely relocate your investment."

The company's website offers more details on Reef Point LLC’s services. Interested parties can reach out to Greg Reese with any questions via email (greg@reefpointusa.com) or telephone (866-867-8633). Calls with Greg may be scheduled online at https://calendly.com/reefpoint.

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