$1.5 Trillion¹. That’s the amount of outstanding student debt being carried today in the U.S., and most of that burden rests on the shoulders of millennials. The impact this financial obligation has on their housing choices, including their ability to move from renter to homeowner, can’t be overstated.

A 1031 Exchange can be a wonderful investment tool for real estate owners looking to defer capital gain taxes on the sale of appreciated investment property. That’s a driving reason why the 1031 Exchange remains so popular today, comprising an estimated 30% or more of the $500 billion of commercial real estate transactions conducted last year.*

Chicagoland 1031 Exchange is a member of The Alternative & Direct Investment Securities Association (ADISA), the nation’s largest alternative investments association. As members of ADISA, we regularly benefit from their three pillars: information and education; networking with peers, professionals, leaders, and regulators; and legislative and regulatory advocacy. It is one way we stay current on alternative investments.

For investors considering a 1031 Exchange or Opportunity Zone (OZ) investment, thorough and thoughtful due diligence has probably never been more important than it is today. With 1031 Exchanges (and especially DSTs) along with OZ investments growing in popularity, the industry is seeing a lot of new offerings as well as new sponsors entering the space.

In 2017, the new federal tax law created Opportunity Zones with the goal of directing investment, development, and improvement in distressed communities around the United States. An Opportunity Zone is defined by the IRS as an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. As you may expect, Opportunity Zones are now, rightfully, getting a lot of attention.

When tax reform passed Congress last year, 1031 exchanges pertaining to real estate were spared major changes in legislation. This often under-looked yet tax-advantaged solution is potentially one of the most powerful tax planning and wealth preservation strategies available to investors.

We at Chicagoland 1031 Exchange often talk about the potential benefits of using a Delaware Statutory Trust (DST) as replacement property to complete 1031 exchanges. It’s true that DSTs have become a popular vehicle for 1031 exchange investors, with good reason. But it’s prudent for us to recognize that, although DST investments have a lot of positive features and are often an appropriate investment channel, they may not be a good fit for every investor.