Finishing Life Well with Passive Property Income

Author

Petra Capital Properties, LLC

For more information about the author, click to view their website: Petra Capital Properties

Posted on

Dec 19, 2023

Book/Edition

Colorado - Colorado Springs

A Time and Season for Change

With nearly 80 million baby boomers approaching the estate planning phase of their wealth cycle, the focus has shifted from wealth accumulation to wealth distribution. If you are an investor that owns rental property or other types of investment real estate, you are likely in a season of life where it's time to transform highly appreciated and actively managed property into a more secure and reliable form of passive income.  Income that can be used to fund home care, health care, charitable giving, and other lifestyle expenses. 

 According to the US Census Bureau, nearly 60 percent of all residential rental property is held by senior investors. Most properties are older, requiring hands-on management and ongoing capital expenditures. Further, the children don’t want the burden of property management or responsibility for selling properties after the parents have passed. Now, facing a crossroad, older property owners desperately need an exit strategy.

 Section 1031 of the Internal Revenue Code states that any taxpayer who sells property held for investment purposes or used in an active trade or business can defer taxes provided that sales proceeds are reinvested into one or more qualified replacement properties. While tax deferral is a critical component, it does not solve the bigger issue of eliminating property management. Fortunately, there is a solution that combines 1031 tax deferral with diversified property income and simplified wealth transfer.    

 In 2004 the IRS approved a co-ownership structure known as the Delaware Statutory Trust or “DST.” DSTs are pre-structured, cash flowing property interests that allow smaller investors to acquire a fractional interest in larger Class “A” multifamily residential and commercial properties. With low minimum investment requirements, multiple DSTs can be combined to create diversified portfolios with professional third-party management. Sample properties include Class “A” apartments, senior housing, medical and healthcare facilities, industrial properties, self-storage, and U.S. government leased properties. DSTs also offer flexible estate planning strategies for target date liquidity needs and transfer of beneficial ownership to the heirs.       

 As the baby boom generation prepares for the greatest wealth transfer in history, it is critical to preserve assets through strategic tax planning and income protection.  A carefully planned portfolio of DST property investments can compound wealth through 1031 tax deferral and generate passive income for living, giving, and legacy estate planning. Senior real estate investors have worked a lifetime for Return-On-Investment and now it is time to experience Return-On-Life!  Contact Petra Capital Properties to learn how you can unlock financial freedom and finish life well through 1031 tax deferred DST passive property investments. 



Editor’s Note: This article was submitted by Brad Watt, Founder & CEO of Petra Capital Properties. He may be reached at 719-649-7770 or by email at bradwatt@petracapitalproperties.com For more information visit: www.PetraCapitalProperties.com


*Distributions are not guaranteed. Securities offered through Saxony Securities, Inc., Member FINRA/SIPC

  • To view the original version of this article visit petracapitalproperties.com/
  • Seniors Blue Book was not involved in the creation of this content.

Other Articles You May Like

Tips to Help Seniors Find New Hobbies

Retirement offers a unique opportunity for seniors to enrich their lives by exploring new passions, hobbies, and interests. However, in some cases, health challenges and mobility limitations can create barriers to pursuing these activities. In these situations, the experienced in-home senior care providers at Gentle Shepherd Home Care in Colorado Springs can help.Our caregivers understand the importance of fostering engagement and independence for seniors and strive to assist them in discovering and pursuing new hobbies and passions.7 Hobbies to ConsiderBelow, we will explore 7 hobbies that seniors should consider pursuing in retirement:Consider Past PassionsMany times, past passions can provide valuable clues to what may bring joy in the present. Consider activities enjoyed in the past. Is there a hobby that was once loved but never had the time to pursue fully? Revisiting these interests can reignite passions and provide a sense of familiarity in trying something new.Explore CreativityWhen it comes to creativity, there is no such thing as an ae limit. Consider pursuing artistic pursuits such as painting, photography, pottery, writing, and more. Many communities have a senior center that offers classes tailored to seniors, providing a supportive environment to nurture creative talents. In addition to providing mental stimulation, these activities also offer a therapeutic outlet for self-expression.Physical ActivitiesPhysical activity is critical for maintaining overall health and well-being, especially as we age. Consider exploring a variety of exercises that cater to personal interests and physical capabilities such as yoga, dancing, tai chi, swimming, and more. These activities can help seniors stay active and energized. In addition, group classes and/or clubs can foster a sense of camaraderie while staying fit.Volunteer ActivitiesVolunteering is a great way to give back to the community, while also staying socially engaged. Consider volunteering with organizations that align with personal interests and values. Regardless of passions, there are plenty of organizations within the community that are looking for volunteers. Volunteering offers a variety of benefits including providing a sense of purpose and fostering meaningful connections.Embrace LearningLearning should be a lifelong pursuit. Consider exploring educational opportunities such as attending lectures, joining discussion groups, enrolling in online courses, and more. In some cases, local community colleges and universities offer special programs for seniors to expand knowledge in areas ranging from history and literature to science and technology.Connect with NatureSpending time outdoors can provide a variety of physical and mental benefits. Consider connecting with nature through activities such as gardening, birdwatching, nature photography, and more. Check with the local community center to learn about nature clubs and organized outings to explore the local parks, botanical gardens, and trails with others who share the same passions.Cultivate Social ConnectionsBuilding and maintaining social connections through retirement is critical for overall well-being. Look for opportunities to connect with others who share the same passions. Join groups within the community that are tailored for seniors. In addition, consider attending community events, cultural activities, religious gatherings, and more to connect with others and forge meaningful relationships.How Gentle Shepherd Home Care Can Help Seniors Find New HobbiesThe in-home elderly care experts from Gentle Shepherd Home Care in Colorado Springs can help seniors find new hobbies. We understand that everyone is unique and take the time to get to know our clients to provide personalized support and companionship, as well as encouragement and motivation. In addition, we can help seniors research and access community programs, classes, and events that align with their interests. Contact us today to schedule your care assessment with one of our highly skilled caregivers.

Home Care for Independent Seniors

Most seniors today prefer to remain in their own home for as long as possible. They dont want to give up their independence by moving in with family or into an independent living facility. This is known as aging in place and can be a viable option for seniors who need little to no assistance with activities of daily living.In-home senior care services from Gentle Shepherd Home Care in Colorado Springs can make this possible. Our caregivers are trained to handle an array of elderly care services from companionship to meal prep to medication reminders to transportation and more.In this article, well explain some of the benefits of in-home care for independent seniors.Who Needs In-Home Care Services?Gentle Shepherd Home Care offers a variety of in-home care services for all ages and needs. However, most of the time, patients who need home care are elderly. If youre unsure if your loved one needs in-home care, consider the following questions:Does your elderly loved one hear the phone when it rings?Do they understand how to safely store food and toss it when it has gone bad?Are they able to cook and clean up after eating?Are they attending social/family gatherings?Can they do their own laundry?If the answer to any of these is no, your loved one may benefit from in-home care.4 Benefits of In-Home Senior CareWhile it can be difficult to accept, nearly everyone will require some type of assistance after the age of 65. If the thought of moving in with relatives or a nursing home/assisted living facility is unappealing for your loved one, in-home senior care can help them age in place.Four benefits of in-home senior care include:Household MaintenanceThere is a lot of work that goes into keeping a household running smoothly. Caregivers can help stay on top of household chores such as laundry, handyman services, housekeeping, and more. They may also help with financial and healthcare management, as well as appointments and financials.TransportationFor many seniors, transportation is an issue, especially at night. Unfortunately, public transportation is not always safe- especially for elderly people. However, one of the services offered by caregivers includes transportation.Personal CareMany seniors need assistance with activities of daily living including meal prep, bathing, dressing, and more. In-home senior care providers can be in the home to help with these activities.Health CareAging usually brings a variety of health concerns as well. Some caregivers are trained to help with these concerns including taking blood pressure, blood glucose readings, medication reminders, and more. Many times, health insurance will cover a portion of these services.Schedule Your Care Assessment TodayIf you believe that you or your loved one may benefit from elderly care services, schedule a no-obligation care assessment. Gentle Shepherd Home Care offers care services for all ages and needs. We can offer companionship for your loved one, and many of our caregivers are able to provide medical care as needed.

Identifying Medicare Scams

Research shows that seniors are common targets of scammers. One of the most common ways that criminals try to get information is through Medicare scam calls. In fact, your Medicare number is often more valuable for criminals than your social security number or credit card numbers/banking information.The caregivers at Gentle Shepherd Home Care in Colorado Springs can help you identify these scams. We offer a variety of in-home senior care services from companionship to medical care.In this article, well explain what you need to know about common Medicare scams.Does Medicare Ever Call Recipients?There are only two reasons that Medicare will ever call you, according to the Medicare website:Health/drug plan provider may call if you are already a member or the agent who helped you join may contact youCustomer service representative may contact you if youve left a message or received a letter stating that you will receive a phone callTop 7 Medicare ScamsFraudsters are getting smart with their scams. However, if someone calls you claiming to be from Medicare with the following pitches, its a scam.Your old Medicare card is invalid- you will be getting a new cardThis is one of the most common Medicare scams. The fraudster will inform you that in order to issue a new card, they will need your social security number and/or your Medicare card number.Truth: Medicare will not call you if there is an issue with your card. They will send a letter to arrange a phone interview.Your Medicare plan is about to be canceledThe caller will claim that in order to prevent your Medicare from being canceled, you will need to verify your current Medicare number, full name, address, banking information, birthdate, and social security number. This is also a common Social Security scam.Truth: Medicare representatives have your Medicare number on file- they will never ask for it. Additionally, Medicare representatives never ask for details such as your social security number to verity your identity.You are eligible for early access to vaccinationsThe COVID-19 pandemic spawned many pandemic-related scams such as being sent at-home testing kits or special access to vaccinations. These offers require that you provide information such as your Medicare number, social security number, and other personal details. Most of these start out as text messages or robocalls. The caller will offer you special access if you pay out of pocket.Truth: Medicare will never ask for you to pay out of pocket to get special treatment.You must confirm your appointment for genetic testingIn some cases, scammers will call offering free genetic testing to screen for a variety of health conditions. When you agree, they will steal your information and will bill Medicare for the test. In some cases, you may be sent an at-home test to complete along with a request for your information.Truth: Medicare will not call or send an at-home kit to offer you testing that you have not requested.You are eligible for free medical suppliesIf a scammer is aware of a specific health condition, such as diabetes, they may offer you free medical supplies or medications. They use this offer to get your Medicare number and other personal information as well as your credit card number so that you can pay for shipping. Your information will be used to over-bill Medicare.Truth: Medicare is not likely to call you to offer free medical supplies/medications. They will never ask for you to pay for shipping or provide financial information. Never pay for anything without seeing an invoice that can be confirmed with Medicare.You overpaid and are due a refundOne of the most common scams fraudsters use is to contact you via a phone call or text offering a refund on overpayment.Truth: Medicare will not call you to verify your personal financial information before issuing a refund. If you are due for a refund, a paper check will be sent out or it will be sent to the bank account on file.Youve been pre-approved for a cheaper/better planSome scammers will try to convince you that you are eligible for a cheaper/better plan than you are currently on. These are most common during open enrollment.Truth: Medicare will not call you without sending a letter first. You should never follow up on any unsolicited calls, visits from people claiming to be Medicare reps, or brochures.What to Do if You Are ContactedScammers can be persuasive, aggressive, and even threatening. However, its important to stay calm- they wont be able to do anything if you dont give them your information.Also, keep in mind that Medicare will not cold-call you. They will contact you via postal mail first to set up a phone interview.If you or a loved one is contacted by a fraudster:Never give out personal informationHang upReport the scam to MedicareWarn loved onesIf you or a loved one is in need of in-home elderly care, contact Gentle Shepherd Home Care in Colorado Springs. We offer a variety of services from simple companionship to medical care.

Local Services By This Author

Petra Capital Properties

Financial Services 115 Wilcox Street, Castle Rock, Colorado, 80104

Petra Capital Properties is a mission-focused investment management company, dedicated to serving the needs of its real estate investment clients.  Our investor-centric approach endeavors to put the needs of our clients first by aligning critical investment objectives with personalized real estate solutions.  The result is optimized portfolio construction that delivers on a two-fold mandate of Preserving Capital and Protecting Income.  Petra has a spectrum of customized 1031 solutions that can meet any capital requirements. Multiple portfolio combinations are evaluated to align investment objectives and risk tolerance. Our investors have worked a lifetime to accumulate wealth, and our goal is to preserve and enhance it. Our Mission is Your Success

Petra Capital Properties

Real Estate 115 Wilcox Street, Castle Rock, Colorado, 80104