Where do we go from here? “A Roadmap to Recovery”




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Summary: By now everyone is well aware of the economic turmoil that is currently facing our country. From our prospective investor confidence is “way down” and many investors are either sitting on the sidelines waiting for a recovery or are “staying the course” and waiting for their stock portfolios to hopefully rebound. In our minds capital must continue to move to create an opportunity for growth and get the economic engines cranking again. Needless to say many of our investor-clients are constantly seeking guidance from us as to where to turn. The two most common questions we hear are: What can you do? And where do we go from here? As an effort to better inform and educate our investor-clients and prospective clients alike on which non-correlated stock market investment strategies might be available during these trying times, 1031 Alternatives Group is offering investors a “Roadmap to Recovery Series.” Though our crystal ball as to when the recovery may begin may be no better than anyone else’s, over the next few months we will share with you a variety of investment opportunities that have proven to be time-tested and successful to investors. Please note past performance is not indicative of future returns. The strategies that 1031 Alternatives Group represents are hard-assets, again do not correlate with the stock market and have generally been “known to few but beneficial to many.” Our first investment is the KBS REIT II. The KBS REIT II is a public-non traded real estate investment trust (REIT). Real Estate Investment Trusts – REITs pull the capital of many investors to acquire or provide financing or equity for real estate properties. They permit investors to invest in a diversified real estate portfolio managed by a professional management team, and the structure pays out at least 90% of its taxable income to those investors. REITs avoid federal “double taxation” treatment of income that results from investments in other corporations because REITs are generally not subject to federal corporate income taxes on its net income if it complies with certain federal income tax requirements. Generally, REITs intend to provide investors with an opportunity to own a select portfolio of income-producing properties. Objectives may include income, diversification, and potential for capital appreciation through investing in commercial office, warehouse, retail, medical office, hotel, marina, assisted living, self-storage, or multi-family real estate. The KBS REIT II employs a unique hybrid investment strategy – focused on both equity and debt investments – with approximately 70% of invested capital in core real estate assets while the remaining 30% targeted at potentially higher yielding structured debt investments and value added properties. This strategy is intended to provide increased risk management as well as broad portfolio diversification by property type, geographical region, investment size and investment risk. Below is a highlight sheet of one of the recent investment in the KBS REIT II as well as a link to the SEC 8k filing that further discusses the investment. This offering is only made by prospectus. Individuals should read the entire prospectus to understand fully all of the implications and risks of this offering. Below is a link to the prospectus, if you are unable to open this link, please call our offices directly 866-405-1031 and we will send one to you. Read the KBS REIT II Prospectus Click Here to Review KBS REIT II Highlight Sheet on the Northern Trust Debt Investment Click Here to Review the KBS REIT II SEC 8k Filing To obtain a prospectus on this investment program or any other investments that we may offer, please feel free to contact our offices directly 866.405.1031. Risks: As with any investment in real estate, there are risks associated with REIT ownership. It is not possible to address al relevant risk factors in this forum. Risk factors are outlined in the Prospectus for each offering. Investors should thorou