Unlock Tax Deferral with a 721 Exchange
Trade property management hassles for passive income with a tax-deferred 721 exchange into an UPREIT.
*Property shown from current CHREIT portfolio
Why consider a 721 Exchange?*
Tax Advantages
A 721 exchange defers taxes on capital gains and depreciation recapture, allowing you to convert real property into REIT shares without an immediate tax hit.
Diversification
Diversify your portfolio by converting a single property into UPREIT units, unlocking access to a diversified real estate portfolio.
Passive Income
REIT portfolios are professionally managed and must distribute 90% of its taxable income to investors, potentially offering consistent, passive income through regular dividends.
Non-Correlated
Non-traded REITs usually perform independently from equity markets, making them a potential hedge against market volatility.
*It’s important to note that performing a 721 exchange comes with risk—most notably, once completed, you can no longer use a 1031 exchange to continue deferring taxes. For a more detailed look at potential risks and considerations, read our Guide to 721 Exchange Guide.
Is Your Property Eligible for a 721 Exchange?
Covenant Housing REIT is actively seeking real estate assets for potential 721 exchanges. Eligible properties may include:
- Multifamily Properties
- Senior Housing Facilities
- Student Housing
Additional factors may impact eligibility. Click below to learn more and submit your property for consideration.
How The UPREIT Process Works
Apply
Complete the submission form, and your property will undergo underwriting to determine eligibility.
Contribute
Transition your eligible property into the REIT through a 721 exchange.
Own
Receive OP units in the REIT, allowing you to participate in its growth and diversification.
About the Sponsor
1031 Crowdfunding is a leading private equity real estate investment and asset management firm with a track record of successful investments across all major real estate sectors.
