721 Exchange Investor Readines

s Checklist

By Peter Mancini | Pen Realty | REBNY

& BNYMLS

Ownership &

Appreciati

on

[ ] I currently own investment property in Brooklyn (or anoth er high-g rowth market) [ ] My property has significantly apprecia te d in value [ ] I want to avoid or defer capital gains taxes on a future sale

Investment Goals

[ ] I'm ready to move from active management to passive i ncome [ ] I'm planning for retirement or a we alth transition [ ] I prefer monthly income over long-term appreci ation righ t no w [ ] I want exposure to diversified, institutional-grade real e sta te

1031 Exchange Familiarity

[ ] I've completed a 1031 Excha nge or und erstand how it works [ ] I am open to using a 1031 Exch ange as the first step toward a 721 [ ] I understand the holding period required before convertin g to a R EIT

Financial

Planning

[ ] I have spoken with a CP A or tax advisor about capital gains [ ] I understand the benefits and limitations of receiving OP Units [ ] I know that OP Units can later be converted to REIT shares [ ] I am aware that 721 assets cannot be exch anged ag ain und er 1031 rule s

Professional Sup

port

[ ] I have a qualified intermediary or rea l estate atto rney advisi ng me [ ] I'm working with a broker who understands 1031 and 72 1 stra te gies [ ] I've identified a REIT that accepts 721 contributions

Next Steps

721 Exchange Investor Readines

s Checklist

By Peter Mancini | Pen Realty | REBNY

& BNYMLS