Investment Strategies That Can Pull You Out Of This Economic Crisis

Investment Strategies That Can Pull You Out Of This Economic Crisis

COVID-19 has brought the economy to a halt not only in the United States but across the world. People are losing jobs, many startups are nearing shut down, small enterprises are lurching to get a foothold – the picture only worsens as we go further. The pandemic has also severely hit the real estate market in the country. Investors are avoiding new investments and are counting on bonds and previous investments. However, there are also many investors who are looking for alternate investment options that can pull them out of this economic crisis.

A pre-packaged investment strategy is the best option in the present situation.

In normal days, you have the luxury to step out and visit different properties in which you may want to invest. However, in this lockdown situation, it’s impossible to go through several properties and then choose. Therefore, the best available option is something that does not require you to step out of your house like a DST.

A Delaware Statutory Trust or DST is a private governing trust that owns, manages, and sells investment properties. DSTs have a collection of premium investment properties that can be co-owned along with other investors. DSTs are pre-packaged investment options and can also be closed digitally. So, you can invest in a DST without stepping out of your home.

You can compare different DSTs while enjoying your coffee at home.

There are not one but several companies that help you invest in a DST. These real estate firms have different DST properties listed on their websites. You can visit the site and go through available DSTs. Once you find your ideal property, you can dial the number present on the website or drop an email. The best way to invest in a DST is through a 1031 exchange. DSTs qualify for 1031 exchanges, and if you have a non-performing asset, you can trade it for a DST property.

Another option is REITs or Real Estate Investment Trusts

Just like mutual funds, REITs are long-term investment options. You can invest in a REIT and wait for your investment to mature. Invest in a REIT could be a good decision at the moment, as it will take time for everything to restore to normal. If you invest now in a REIT, you can expect some growth in your investment after a year, which will keep growing if you continue the investment. You might want to mix REITs in 1031 exchange. However, REITs don’t qualify for 1031 exchanges. Irrespective of what investment option you choose, it’s recommended that you speak to an advisor or an expert.

 

“Our tax-deferred 1031 exchange programs can save millions in taxes, increase investor equity, and compound annual cash flow distributions and returns”