A new article by Bradford Updike, LLM, JD and David Sengstock, JD of Mick Law P.C. that discusses the contrasting segments of the real estate DST and energy-based §1031 product sectors.
Conventional asset-based products continue to present DST 1031 opportunities for stable cash flows, long-term capital preservation, and in some cases, growth, the energy §1031 product area presents a niche avenue for investors with a steeper risk tolerance, as well as an opportunity to achieve an out sized return driven through oil and gas mineral rights ownership and commodity market exposure.
This article is intended for Accredited Investors, broker dealers, investment advisors, and family offices to better understand the contrasting features of §1031 product offerings in conventional real estate and in oil and gas assets. Despite structuring these offerings as §1031 eligible products, understanding the economics as well as the tax consequences of these products is a critical key to investment success.