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Investing in Senior Housing Properties - Part 2

As with any investment, it’s important to do the proper due diligence to know where your hard-earned money is going. When it comes to senior living investments, some think it’s similar to the traditional multifamily, office or industrial properties they have invested in before. Although in some instances this may be true, senior housing and care have some specific differences from other property types that are important to know before you invest.

Investing in Senior Housing - What is Senior Housing & Care?

investing in senior housing

Investing in Senior Housing

The U.S. population is getting older. In 2000, 35 million people were over 65. In 2020, 54 million people were 65 or older. By 2040, data indicates 80 million people will be more than 65 years old. As the population ages, people need somewhere to live that can accommodate their needs as older adults. While some can age in place in their homes, others move into housing designed for older adults who need a higher level of daily care. The increased demand for senior housing creates an opportunity for investors who want to diversify a portfolio or start investing in real estate for the first time.

Cost Segregation Benefits

Last week we introduced you to Cost Segregation and how it works. Today we'll discuss the benefits of Cost Segregation Studies and how some investors pair them with a tax-deferred 1031 exchange. Let's begin with the eligibility requirements of property for Cost Segregation Studies.

Intro to Cost Segregation

What is Cost Segregation

Cost Segregation is the practice of identifying personal property assets and their costs and classifying those assets for federal tax reporting purposes.

Understanding DST 1031 Exchanges, Part 3

DSTs Reduce TIC Drawbacks

During the 1990s and early 2000s, most 1031 exchange investors who exchanged properties for partial ownership in large, high-valued replacement properties participated in the Tenant-In-Common (TIC) structure.