Insights Chicagoland 1031 Exchange

An Eye on Alternatives - Chicagoland 1031 Exchange

Written by Nathan Kuhn | Jun 14, 2019 2:34:19 PM

It has always been a part of my investment philosophy that by appropriately utilizing “alternative” investments in conjunction with more traditional asset management strategies, we can better help our clients reach their financial goals. To me, an alternative investment is really any investment that does not fall in the typical stock, bond, or cash box.

When suitable, alternative investments can be an important part of an investment plan.

Alternative investments have the potential for returns that are not correlated to other investments; they may also have the potential to provide higher sustainable income and potentially out-sized investment returns.

I perform thorough due diligence on alternative investments. This includes reviewing offering documents, discussing various investments with their management team, and attending due diligence meetings and conferences. I believe that the quality of the alternative investments we can offer our clients has never been better, and we can provide access to opportunities in many alternative asset classes.

Real estate is the largest alternative asset class that we utilize with our clients.

Investment opportunities include:

  • Multifamily Residential
  • Senior Housing Development
  • Land Redevelopment and Zoning
  • Distribution Warehouse Properties

Many of our clients who have invested in real estate have owned property used for business purposes and have sought our expertise in helping them reinvest using a 1031 Exchange in order to enjoy the tax deferral benefits. But a 1031 Exchange is not just limited to prior real estate owners. A Delaware Statutory Trust (DST) is a type of 1031 Exchange available to other individuals who are simply interested in making a cash investment in this attractive alternative asset class. In addition to real estate, we also utilize private equity and oil and gas investments.

These investments vary greatly in their objectives and risks. The minimum investment required in these opportunities ranges from $5K to $100K, typically the minimum is $25k.

If you’re interested in investing in alternatives or have any questions, please feel free to contact us.

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