721 Exchange Readiness Checklist

For Brooklyn Real Estate Investors

T

ransitioning to REIT

Shares

Step 1: Pre-Exchange Plannin

g

[ ] I own appreciated i nvestment property in Broo klyn [ ] I'm looking to defer capital ga ins taxes [ ] I want to reduce or eliminate property manage ment responsi bilities [ ] I've considered or used a 1031 Exchan ge before [ ] I'm open to exchanging property ownership for REIT shares

Step 2: Understand 1031 Exchange Require

ments

[ ] My property qualifies as a "like-kind" investment [ ] I've identified a replacement property wi th in 45 days [ ] I've hired a Qualified Intermediary (QI) [ ] My replacement property is structured as a DST or TIC [ ] The DST/TIC is approved by the target REIT

Step 3: Compliance Hol

ding Period

[ ] I understand the required 12-24 month h oldin g period [ ] I've consulted a tax advisor about IRS safe ha rbor rules [ ] I'm prepared to hold the replacement property until REIT conversion is permitted

Step 4: Contribute

to REIT

[ ] I've confirmed the REIT's Operating Partnership a ccepts contribution s [ ] I understand I will receive OP (Operating Partnership) Units [ ] I've reviewed REIT share conversion timelines and liquidity [ ] I've reviewed expected i ncome distrib utions from the REIT

Step 5: T

eam of Professionals

[ ] I've hired a broker experienced in 1 031 and 72 1 Exchange s

[ ] I'm working with a CP A familiar with REIT conversions [ ] I've consulted a real estate attorney to review DST/TIC contracts [ ] I understand the long-term tax an d estate implicatio ns

Bonus: Legacy & Lifestyle Goal

s

[ ] I want to create passive income for retireme nt [ ] I'm planning to simplify my estate for future heirs [ ] I want to invest in diversified, institutio nal-grad e assets [ ] I'm ready for a tax-ef ficient exit strategy