Five Steps to Construct a Diverse Real Estate Investment Portfolio

Dwight Kay Founder of Kay Properties recently published in National Real Estate Investor Magazine. Here are some guidelines on maximizing returns and minimizing risks when building your commercial real estate portfolio. Please view the article on NREI here.  Millions of Americans invest in alternative assets, including real estate. It’s an important step to diversify* a portfolio with investments that don’t necessarily correlate with the stock or bond markets. Here are five tips to help construct a … Read More

Can I Cash-Out a Portion of my 1031 Exchange Proceeds? The Ins-and-Outs of A Partial 1031 Exchange


By: Orrin Barrow, Vice President, Kay Properties and Investments, LLC Many investors that come to Kay Properties are looking for a full tax deferment utilizing a like kind exchange. A full tax deferment under IRC Section 1031 consists of buying a replacement property for equal or greater value than that of your relinquished value of the property. For example, if an investor sells their property for a net sales price of $1,000,000 in order to … Read More

Good to Have a 1031 Exchange Backup When You Need One: Kay Properties Helps DST Investors Avoid a Potentially Significant Tax Consequence

By: Alex Madden, Vice President, Kay Properties and Investments, LLC Kay Properties and Investments is pleased to announce a completed exchange for an investor who did not originally intend to invest into Delaware Statutory Trust (DST) properties. Vice President Alex Madden explained: “After discussing the client’s background in real estate investing, he expressed his first choice was to continue with active management for a few more years before he began moving his substantial real estate … Read More

Questions to Ask Your 1031 Exchange Qualified Intermediary

A 1031 exchange intermediary pitching to investors

By: Steve Haskell, Vice President, Kay Properties and Investments, LLC When checking off the boxes for your 1031 exchange “to do” checklist, choosing a qualified intermediary should be on top of that list. The IRS requires exchangers to employ a qualified intermediary (aka “QI, “accommodator,” or “facilitator”) to receive the funds upon sale of the exchanger’s property. Section 1031 of the Department of the Treasury Regulations authorizes the QI to receive and hold the funds, … Read More

Three 1031 Exchange Alternatives

A man writing down various 1031 exchange options

By: Jason Salmon, Senior Vice President; Managing Director of Real Estate Analytics, Kay Properties and Investments, LLC Are you considering a 1031 exchange? There’s no doubt that in cases of like-kind exchanges, the Section 1031 offers tax gains that may amount to a substantial figure. It helps explain the popularity of the exchange option in the U. S. However, in many cases, in order to take advantage of the reduced and deferred taxes, the 1031 … Read More

DST 1031 Exchange Investment Strategies: Why 1031 Exchange Diversification Matters

By: Orrin Barrow, Vice President, Kay Properties and Investments, LLC The Delaware statutory trust was invented so investors would have the ability to utilize their 1031 exchange proceeds to diversify* across different 1031 DST sponsor companies, asset classes, submarkets and investment strategies. We here at Kay Properties and Investments have access to a diversified DST 1031 marketplace platform (kpi1031.com) to be able to build well diversified DST portfolios for our clients who are currently in … Read More

The Other DST – Deferred Sales Trust: What You Should Know

By: Matt McFarland, Associate at Kay Properties & Investments, LLC Many times, when researching the Delaware Statutory Trust structure as a potential 1031 exchange option, investors will come across another DST—the Deferred Sales Trust. It can all be very confusing. The Delaware Statutory Trust is an accepted part of the Internal Revenue Code under Revenue Ruling 2004-86 and has provided investors the ability to defer their taxes upon sale of an appreciated piece of investment … Read More

5 Tips to Build a COVID-Proof Real Estate Investment Portfolio

A large corporate building where you might learn how to build a real estate portfolio

By: Steve Haskell, Vice President of Kay Properties and Investments, LLC  So, you’ve decided to invest in income-producing real estate as a way to diversify* your investment portfolio so all your assets are not correlated to the stock market’s performance. Now how do you plan a real estate portfolio to build wealth and withstand a crisis? We’ve learned a great deal from analyzing the market through crises including 9/11, 2008-2009, and the current COVID-19 pandemic. … Read More

So Your 1031 Exchange Deadline Has Been Extended? Why Waiting Until the July Deadline Could Be a Bad Idea

Please view our story on National Real Estate Investor here. With so many exchanges facing the same deadline, there is very real potential for unintended consequences. As a result of the COVID-19 pandemic the IRS issued Notice 2020-23, which provided a multitude of tax extensions, including 1031 like-kind exchange deadlines for some investors. While the extensions were provided for good reason, there may be unintended consequences if eligible investors all wait to pull the trigger on … Read More