Hypothetical case study
Optimize return. Minimize risk.
The following is a hypothetical example of a 1031 exchange investor selling an actively managed fourplex residential rental property and reinvesting into a passively owned, diversified DST portfolio. The example is illustrative only. Actual results will vary based on individual circumstances.
Investor profile
- Ownership type
- Individual
- Property management
- Active (self-managed)
- Investor age
- 62
- Property age
- 20 years
- Debt replacement
- Required
- Risk posture
- Moderately conservative
Investor objectives
- Capital preservation
- Full tax deferral via 1031 exchange
- Monthly passive income
- 5–7 year exit strategy
- Estate planning and legacy considerations
- Non-recourse debt replacement
Relinquished property details
- Sale proceeds
- $1,500,000
- Debt payoff
- $400,000
- Closing costs
- $20,000
- 1031 exchange equity
- $1,080,000
Multiple portfolio combinations were evaluated to align investment objectives with risk tolerance.
Representative replacement portfolio allocation
Illustrative only. Actual allocations vary by client and available inventory. Distributions not guaranteed.
Illustrative examples of the diversified replacement-property mix Petra may evaluate inside a POPP.
Petra's guiding principle
“Building smarter DST portfolios for better outcomes. A 1031 exchange is an investment strategy first and a tax strategy second. Whatever you do, don't get these out of order. The consequences could be epic.”
— Brad Watt, CEO & Founder, Petra Capital Properties
Client highlights
Real outcomes from real client relationships.
“Since 2007, we have completed seven 1031 exchanges utilizing Brad Watt's expertise totaling $35 million. The quality and stability of our DST assets provide my family with great comfort. Put your trust in Petra Capital Properties and you will sleep well at night.”
CB Craig B. — $35 Million across seven 1031 exchanges since 2007
“I recently closed on four DST 1031 exchange properties with Petra Capital Properties and their approach to risk management and diversified asset allocation allowed me to actively participate in the construction of my portfolio. Their POPP technology platform was invaluable.”
JB Jon B. — $2M+ diversified DST portfolio, four DSTs
Get your custom POPP
Contact Petra to personalize your 1031 portfolio.
Petra has a spectrum of customized 1031 solutions that can meet a wide range of capital requirements. A Portfolio Design Session is where that process starts.
A focused conversation about your property sale, exchange timing, income needs, and portfolio mandate.
Ready to move forward?
Turn your property sale into a custom passive income portfolio.
Book a Portfolio Design Session and see what a POPP built around your exchange looks like.
A focused conversation about your property sale, exchange timing, income needs, and portfolio mandate.