Portland Is Rotting From Within

Portland, Oregon Is Rotting From Within

According to a front-page editorial in the nationally syndicated Washington Examiner, entitled “Antifa anarchy, Portland’s apathy,” Portland’s streets, “once a haven for creativity and expression, are roamed and controlled by masked thugs who violently and furiously attack people who disagree with them.”1

Furthermore, “what we have in Portland is a deliberate and cowardly failure of government, with dire consequences for Portland and the rest of the nation.”

“For their part, rioters mock law enforcement and flaunt their lawbreaking, and the police respond by announcing over loudspeakers that everyone has the right to “exercise First Amendment rights safely,” as if assault and vandalism were constitutionally protected activities.

As landlords, what do you think this kind of national publicity is doing to your property values.  In the second quarter of 2019, Oregon saw a 38% decline in multifamily transactions and out of state investment dropped to nearly zero.2 Fortunately, when suitable, a Delaware Statutory Trust (or DST) may be an innovative alternative option for a 1031 exchange.

DSTs allow investment property owners to exchange income producing commercial properties of all types.  Furthermore, these can be located anywhere in the country.  These properties are professionally managed by third parties, so the potential income stream is truly passive.

By exchanging into one or more DST properties investors no longer have to deal with the breakdown in public safety which now plagues Portland.  Nor must they deal with a city administration that sees landlords as an enemy to be ignored and plundered.  There are other places, notably the Sunbelt, in my opinion, where property rights are still respected, and landlords need not go in fear of their lives and property. 

For more information contact Robert S. Smith, Peregrine Private Capital, 503-241-4949, RS@PeregrinePrivateCapital.com

1July 19, 2019

2 Rental Housing Journal 7/10/2019, How Does Rent Control Affect the Value of Multifamily Properties

This is for informational purposed only and does not constitute an offer to buy or sell any securitized real estate investments. DST 1031 properties are only available to accredited investors (typically have a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last three years) and accredited entities only. There are risks associated with investing in Delaware Statutory Trust (DST) and real estate investment properties including, but not limited to, loss of entire principal, declining market value, tenant vacancies and illiquidity. Diversification does not guarantee profits or guarantee protection against losses. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This information is not meant to be interpreted as tax or legal advice.
Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Peregrine Private Capital Corporation is independent of CIS.

Disclaimer

This material and views are prepared solely by the author and does not necessarily represent the views of the its affiliates. Statements concerning financial market trends are based on current market trend, which will fluctuate. Projections are inherently limited and should not be relied upon as an indicator of future results. Historical figures and performance are not indicative of future results. This is for informational purposes only and does not constitute an offer to buy or sell any investment.

DST 1031 properties are only available to accredited investors (typically have a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last three years) and accredited entities only. There are risks associated with investing in Delaware Statutory Trust (DST) and real estate investment properties including, but not limited to, loss of entire principal, declining market value, tenant vacancies and illiquidity. Diversification does not guarantee profits or guarantee protection against losses. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated.

Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This information is not meant to be interpreted as tax or legal advice.

 

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