Here Are Just Some Of Our Most Recent Investment Projects:
Peregrine Private Capitol
Is happy to be a part of many completed property investment projects such as the ones pictured above.
Historically low interest rates and an aging population continue to drive demand for cash flowing real estate. However, after nearly a decade of holding interest rates near zero, the world is awash in cash. There is far more cash on hand in the global economy than there are safe places to put it.
In keeping interest rates too low, too long, the Fed created sharp increases in asset prices across the board, from stocks to real estate. When long term interest rates rise, these asset prices historically come down. As such, it is a risk for retail investors (you and me) to navigate the coming economic turbulence alone. Hence, the advantage of institutional quality DST (Delaware Statutory Trust) properties.
DST properties as illustrated in some of our recent investment projects are the primary mechanism whereby individual investors with little or no institutional property ownership experience can access the highest quality commercial properties available. This is true of all property classes: multi-family, self-storage, assisted living, medical office buildings, retail, industrial, etc.
Through the mechanism of DST not only do you have access to the same properties that populate portfolios of the nation’s largest banks, insurance companies, university endowments and pension funds but they are managed remotely for you. You go from the “terrible Ts” Tenants, Trash and Toilets to the “mailbox money business.” Cash distributions from property operations inside the trust are made monthly by management to investors.
Furthermore, as rental income, much of this is tax sheltered due to depreciation and interest expense. Therefore, your tax-equivalent yield (TEY) on this income stream is considerably higher.
The dynamic represented by the DST property ownership construct is very much a win-win for retail investors. First, it allows them to trade up to an institutional quality asset (as seen here) which they likely would not be able to access alone and then it relieves them of the incumbent management responsibility.
Finally, out of recognition of our current fully priced asset environment, DSTs also offer retail investors the opportunity to diversify geographically and functionally. To risk stating the obvious, all real estate markets do not appreciate in the same manner and for the same reasons. Exogenous factors, outside the control of most owners, are always at work shaping different environments. Individually it is very difficult to take advantage of such trends. A single asset purchase concentrates, or isolates your investment. The fractional nature of DST ownership does exactly the opposite, it diversifies your equity both geographically and functionally.
In a fully priced market environment, your principal defense against over-paying for a single replacement asset is to diversify over many.
A financial services firm specializing in alternative investments.
Peregrine Private Capital and Emerson Equity LLC do not provide legal or tax advice. Please speak to your tax and / or financial professional prior to investing. All investing involves risk. Past performance is not indicative of future results. Securities offered through Emerson Equity LLC, Member FINRA/SIPC and MSRB registered. Emerson Equity LLC is unaffiliated with any entity herein.
1031 Risk Disclosure:
There is no guarantee that any strategy will be successful or achieve investment objectives;
Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
Potential for foreclosure – All financed real estate investments have potential for foreclosure; ·Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments;
Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits
No offer to buy or sell securities is being made. Such offers may only be made to qualified accredited investors via private placement memorandum. Risks detailed in a private placement memorandum should be carefully reviewed, understood and considered before making such an investment. Prospective strategies and products used in any tax advantaged investment planning should be reviewed independently with your tax and legal advisors. Changes to the tax code and other regulatory revisions could have a negative impact upon strategies developed and recommendations made. Past performance and/or forward looking statements are never an assurance of future results. Many of the investments offered will be only available to those investors meeting the definition of an Accredited Investor under SEC Rule 501(A) and offered as Regulation D private placement securities via a Private Placement Memorandum (“PPM”). Prospective investors must receive, read and understand all of the risks associated with buying private placement securities. Investments are not guaranteed or FDIC insured and risks may include but are not limited to illiquidity, no guarantee of income or guarantee that all tax advantages or objectives will be met and complete loss of principal investment could occur.
NO OFFER OR SOLICITATION: The contents of this website: (i) do not constitute an offer of securities or a solicitation of an offer to buy of securities, and (ii) may not be relied upon in making an investment decision related to any investment offering by Peregrine Private Capital, Emerson Equity LLC, or any affiliate, or partner thereof. Peregrine Private Capital does not warrant the accuracy or completeness of the information contained herein.