721 Exchange Investors

Invest with Your Property in Exchange for Equity Shares

 

not a taxable event

Alternative to a 1031

Diversify your holdings

With Tokenization Liquidity

Great for Estate Planning

Equity Growth in a Stagnant Market

–  We are Accepting “721” Investors NOW!  –

“721 Exchange Investors” refers to a transaction structure that is widely used in the REIT industry and has been since 1992. This transaction is commonly called a “721” or an “UPREIT.”  The 721 Exchange allows property owners to convert their real estate holdings into an interest in a publicly traded REIT or it’s 100% controlled Operating Partnership (OP) without triggering a taxable event.

This structure offers an attractive tax-deferred exit to owners facing a significant taxable gain on sale due to a low tax basis. This offers similar tax-deferral benefits to a 1031 exchange, but with the added bonus of liquidity. Owners receive units convertible into shares and then can sell the shares individually over time.

REICG’s corporate structure mimics that of the most sophisticated REITs and designed with a 721 Exchange Program in mind.

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.

Alternative to a 1031:  While most property owners are familiar with the 1031 exchange and it’s 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.

 

 

REICG is disrupting the way “Private Equity” real estate funds in the U.S. operate and raise capital.  REICG’s innovative business models offer 721 Investors opportunities that never existed before.

Public REIT vs Private Fund: REICG is a private fund that is structured like a public company, because it will be selling a large number of  shares internationally with low minimums as a Securitized Token Offering (STO).  STOs or digitized electronic shares backed by real assets are already trading on STO exchanges around the world, including two SEC approved  STO exchanges here in the US, with more on the way.  REICG is the first Private Fund to also offer 721 Investors Liquidity.

Liquidity vs Volatility:   Everyone wants liquidity for their investments. Everyone has also learned recently that the liquidity offered by the public markets is a double edged sword.  Volatility can cut your wealth in half over the course of a week.  Private Real Estate Funds are not liquid so they are not volatile, and they generally have a 3 to 5+/- year exit strategy.

REICG’s business model is designed to offer the best of both worlds.  Limited yet ever increasing liquidity along with stable and predictable valuation growth with low to no volatility.  Read more about our Business Models

Income vs Appreciation:  There are an unlimited number of both Public and Private real estate investment opportunities that offer dividend Income.  U.S. investors have come to see that the Income from a single property investment, may not be as consistent and reliable as once believed.

In addition; Commercial Real Estate professionals across the U.S. are predicting that commercial real estate values will remain flat or lower for the foreseeable future.

REICG has created a cash-flow Real Estate backed opportunity for enhanced “Equity Share” appreciation.  Think about growth stocks like Netflix or Amazon.  They do not pay dividends and no one invests in these companies for the income; they invest for the appreciation.

REICG Equity Shares will increase in value in both a flat and decreasing price environment.  Because the growth of share value does not depend on the increasing valuation of any individual property.  REICG Equity Share value is based upon the Net Asset Value (NAV) of the entire portfolio of properties; and the portfolio of properties will INCREASE as we acquire additional properties every year!

No U.S. commercial real estate firm has ever offered an International Real Estate Fund like this before.

 

REICG intends to build a diversified portfolio of high-quality, Class “A”, multi-tenant commercial properties.

Our Preferences are:

  • 1st choice – Multi-Tenant Retail ( see our Acquisition Criteria )
  • 2nd choice – We will consider other opportunities, as long as it fits into our business Model

The only Firm Requirement:

  • Assumable, Non-Recourse Debt, or
  • Free and clear of Debt

Brokers will be protected !

  • Bring all 721 Exchange Offers

No U.S. commercial real estate firm has ever offered an International Real Estate Fund like this before.

 

Contact Us Today!

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