No More Tenants, Trash and Toilets: Ashley Romiti on DSTs and the 721 UPREIT

From Real Estate Underground · 41:22

Show by Ed Mathews

Ashley Romiti is the president and founder of GCA 1031, where she works primarily with retiring real estate investors who want to reposition their portfolios. Most of them have held their properties for a long time, and the hard part isn't the tax code. In her words: "The big thing they're giving up is control." Ashley defines the 1031 exchange, the Delaware Statutory Trust and the 721 UPREIT, then walks through how she decides which one fits where an investor is. If you're still in growth mode, she'll tell you so: "I will be the first to tell a client, 'This is not for you.'" What Ed and Ashley get into: How a 1031 exchange, a DST and a 721 UPREIT differ, and how they work together What an investor gives up in a DST: control and liquidity Why like kind is broader than most investors think Why a net lease property's value can drop as the lease term runs down The traditional DST's five to seven year hold, and the 721 DST's move into a REIT OP units, and the point where liquidity becomes a taxable event How DST debt can replace the loan you paid off in an exchange What 100 cold calls a day taught Ashley about rejection Also in this episode, at 25:35, Questions from the Underground: The Personal Guarantee. An investor named Ronnie called Ed about a four-unit in Connecticut with six partners, none holding more than 20%, and his position was that nobody has to sign. Ed explains why that doesn't work, why the guarantee is really about how you responsibly use leverage, and why being worried about signing one is a warning sign. This episode is general education on how these structures work. It is not tax, legal or investment advice. DSTs are illiquid and returns are not guaranteed. Talk to your own CPA and advisor about your situation. Learn more about Ashley and GCA 1031 at gca1031.com. Chapters: 00:00 Cold open: don't let one person have that much control over you 00:59 Welcome, Ashley Romiti of GCA 1031 01:56 Who Ashley works with: retiring investors repositioning a portfolio 03:12 Definitions: 1031 exchange, DST and 721 UPREIT 06:40 Like kind is broader than you think 06:59 What you give up in a DST: control 11:34 Growth or preservation: matching the vehicle to where you are 15:16 How the 721 UPREIT works 20:23 Debt replacement in a DST 23:35 1031 for growth, DST to land the plane, 721 for the estate 25:35 Questions from the Underground: The Personal Guarantee 30:07 Lightning round and where to find Ashley Flipper Camp is a live online program for house flippers, taught by Ed Mathews, who has been flipping houses since 2011. Learn how to find deals that pencil, estimate a rehab without guessing, fund and sell on budget, and use AI and technology to run more than one flip at a time. The next session is capped at 25 seats. Join the waitlist for first access: https://flippercamp.com Elevista - Speed as a Service™Elevista Connect is the first AI-powered lead conversion system built for real estate investors. 🎧 Subscribe to Real Estate Underground for weekly insights on building wealth through real estate, without sacrificing your sanity.Additional Resources:Clark St Capital -> Passive real estate investments for busy business owners and executivesElevista -> AI SaaS for real estate investorsClark St Academy on YouTube -> Learn how to invest in real estateSocial Media:LinkedIn -> Ed Mathews (President at Clark St and Elevista)Heads up: If you find this week's book intriguing and you buy using our link, we receive a small commission that helps support the show. Thank you!

More episodes of Real Estate Underground

More episodes

PodSearch is a free, independent podcast search engine. Read about PodSearch, the privacy policy or contact us.