Investing.

Our Firm offers Alternative Investments, Direct Private Placement and REIT investment offerings.

Diligent Financial Group Inc. offers investments in Direct Private Placement (DPP’s), Delaware Statutory Trust (DST) investments for 1031 Exchange or cash transactions, and REIT’s (Real Estate Investment Trusts).

Direct Private Placement  is a direct private offering of securities to a limited number of Accredited Investors.

It is the opposite of a public offering. Securities issued as private placements include equity and debt securities. In the United States, private placements are exempt from public registration under the Securities Act of 1933. While the procedure for conducting a private placement pursuant to the exemption is less stringent than for that of a public offering, the process requires a careful compliance with the terms and restrictions of Regulation D.

DST’s: A Delaware Statutory Trust (DST) is a business trust created under Delaware law.  DSTs can be used ins wide variety of business settings, and have become popular pass-through entities to hold commercial real estate assets for investors. A Delaware Statutory Trust (DST) is a business trust created under Delaware law. DSTs can be used in a wide variety of business settings, and have become popular pass-through entities to hold commercial real estate assets for investors.

Upon the sale of a property in a DST, the investor will have the option to pay any capital gains tax or defer any capital gains tax by participating in a 1031 exchange.  Source: Inland

REIT [Real Estate Investment Trust]:

REITs pool the capital of many investors to indirectly invest in a professionally managed commercial real estate portfolio. REITs must pay distributions to stockholders equal to at least 90% of “REIT taxable income,” subject to certain adjustments. REITs are not typically subject to federal corporate income taxes, thus eliminating the “double taxation” (taxation at both corporate and stockholder levels) generally applicable to a corporation. REITs are considered an option for generating income.

A nonlisted REIT has all of the above characteristics but its shares are not listed on a public exchange. A nonlisted REIT is focused on buying and managing new assets purchased in the private real estate market. Eventually, as part of its lifecycle, a nonlisted REIT may list on an exchange or may merge with or be sold to a listed REIT. However, nonlisted REITs do not offer the liquidity of listed REITs and there is no assurance that a nonlisted REIT will have a liquidity event. Investors in nonlisted REITs generally are seeking income from distributions over a period of years. Listed and nonlisted REITs are registered with and regulated by the Securities and Exchange Commission (SEC).

Investors should bear in mind that investing in the shares of a nonlisted REIT differs from investing in listed securities in significant ways. Shares of a nonlisted REIT have limited liquidity. In contrast, an investment in a listed company is a liquid investment, as shares can be sold on an exchange at any time. Investing in shares of a nonlisted REIT also differs from investing directly in real estate including the expenses related to a nonlisted REIT offering and other fees and expenses that the issuer may pay.

 Source:Inland

LLCs: What is a ‘Limited Liability Company – LLC’.  A limited liability company (LLC) is a corporate structure whereby the members of the company cannot be held personally liable for the company’s debts or liabilities. Limited liability companies are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship. While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of partnerships.

Please be reminded not all these investment options are appropriate for every investor.  Please contact us if you like to discuss these options further.