721 Exchange:
An Alternative For Real Estate Investors

Benefits of a 721 Exchange

The 721 Exchange is technically a “purchase and sale agreement.” However, rather than receiving dollars as payment you receive the equivalent amount of Equity in the acquiring firm. Thereby exchanging the equity shares of the relinquishing ownership company, for the equity shares of the acquiring company.

Taxes:

Typically the seller would pay taxes on the capital gains and on the depreciation utilized during the term of ownership. A 721 exchange allows investors to avoid these taxes and keep their wealth working for them.

1031 Exchange Alternative:

While most property owners are familiar with the 1031 exchange and its benefits, few are familiar with the 721 exchange. The 721 exchange is actually a much easier, simplified transaction. The hard part was finding a publicly traded REIT that was interested and able to acquire your property in this manner.

Diversification:

The 721 Exchange enables the investor to achieve diversification across the multiple properties, tenants, demographics, and asset classes of the acquiring REICG Fund.

Active vs Passive:

The 721 Exchange allows the investor to trade an actively managed real estate asset for a fractional ownership of a real estate portfolio of assets that are actively    managed by the acquiring REICG Fund.