Education

Our aim is to provide individual investors access to real estate investments through an institutional approach.

How Our Interest Rate Hedging Strategy is Paying Off for Our Funds

Early in 2022, Origin’s investment committee became increasingly concerned about rising inflation, believing that interest rates would follow suit. As …

THU

1

March 2 @ 1:00 pm - 2:00 pm • Webinar

Webinar: Growth Fund IV March Update

Zoom

The final close for Growth Fund IV is quickly approaching on March 31. Join Origin Co-CEO David …

Read More ...

Md. Hamid

Md. Kasim

THU

2

March 2 @ 1:00 pm - 2:00 pm • Webinar

Webinar: Growth Fund IV March Update

Zoom

The final close for Growth Fund IV is quickly approaching on March 31. Join Origin Co-CEO David …

Read More ...

Md. Hamid

Md. Kasim

Savy Investors

A 1031 exchange is a swap of one real estate investment property for another that allows capital gains taxes to be deferred.

What is a 1031 Exchange?

A 1031 exchange is a powerful tax deferral strategy that was originally started in 1921, 3 years after the first income tax code was enacted by Congress. Since then, it has gone through several iterations. The current 1031 tax code allows like-kind real estate asset exchange to defer capital gain taxes. This can only be performed with real estate capital gains.

Why is it important to know how to use a 1031 properly?

If you can continue to 1031 exchange until you die, your “basis” in the property will reset to the current value of the investment when you die as the investment is handed down to your heirs. This is called a “cost basis step up”. This is also why the 1031 exchange is often called a “legacy wealth play” as this allows you to never pay capital gains (or depreciation recapture) and to leave more to your family when you pass away.

How is the 1031 exchange executed?

When SITG, or you as an individual investor, has decided to sell a property, we will poll the limited partners in the entity that holds the asset to see if they want to participate in the 1031 exchange. We do this early in the sales process since the next property (called a replacement property) must be identified within 45 days of closing. Then we must close on the new property within 180 days from closing to qualify. To remain compliant with the tax code, we must use a qualified intermediary to handle all funds between the sale of the initial asset and the purchase of the replacement asset. Unlike many of our competitors we will take care of the fees charged by the qualified intermediary and work with you directly to make sure the process is smooth.

Explore our open private real estate investments.