Portfolio Too Much to Handle? It’s Time for a DFW UPREIT | The Peak Group

There are probably a myriad of reasons why you initially chose real estate investing as your primary vehicle for generating long-term wealth. Most investors in DFW are pretty familiar with the laundry list of positive incentives to get started in real estate investing. However, what the so-called “real estate gurus” out there don’t tell you is that investing alone is a full-time job.

When you first got into real estate, the sugar plums of investing in property were probably dancing before your eyes. Did they look a little something like this?

  • Passive-income generating properties don’t require you to lift a finger!
  • Tenants pay their rent on time, every time—it practically falls into your lap each month!
  • Once you’ve got a paying renter in your properties, the hard work is over!
  • The properties you purchase are in great shape—no need for upkeep!
  • You feel pretty confident that you picked a great tenant—no need for a screening!
  • My portfolio is secured by the diversity that real estate presents—and my net worth is massive!

After the first time you got burned, you probably felt like it was a fluke: next time, you’d screen more thoroughly. You continued to add properties, and after the third or fourth “trough,” you could no longer see the peak. You suddenly had a portfolio of properties that had lost their appeal, and you were left wondering what to do about retirement. Your financial future had never seemed so obscure—or insecure.

Is There a Way Out?

We get it: we’ve been in your shoes. Investing alone is a tough business—and owning real estate really can be a great method to diversify your portfolio and shore up your riskier investments. It’s only the drawbacks of being a full-time landlord that makes investing so exhausting! However, you might feel like offloading your properties lands you right back at square one; all that time, income, and work is gone in an instant. Plus, you’re left footing the bill for excessive capital gains taxation—so much for the American Dream.


Thankfully, when you feel like you need an exit strategy to escape the burden of your portfolio, you finally have a viable alternative: a DFW UPREIT is a way to leave your portfolio behind—while still holding onto the benefits of real estate.

What Even Is an UPREIT?

If you’re familiar with what a Real Estate Investment Trust is, then you’ve seen the bare-bones structure of what an UPREIT can offer you. However, the “UP” in “UPREIT” is what makes it ideal for investors looking to escape their portfolio. Let’s dive into how a DFW UPREIT works for you and your financial goals so that you can see what we mean.

  • A Real Estate Investment Trust—or “REIT,” for short—is the foundation of an UPREIT.
  • It behaves like a pool of shared properties contributed by investors, for investors.
  • REIT portfolios either choose a diversified focus (a mixture of residential and commercial property) or an asset-specific tactic (commercial only).

It’s the collective of properties that generates dividend-based income, rather than the individual properties the investors contribute to the pool. Ultimately, this helps your portfolio reach even greater heights when it comes to diversity. Given the scope of a REIT, investors gain access to a portfolio that is geographically varied (which is hard to accomplish alone).

The UPREIT Difference

In a DFW UPREIT, or Umbrella Partnership Real Estate Investment Trust, added properties still join the collective—but investors are not required to self-manage their contribution. The headache of having to police your properties is relieved because the Umbrella Partnership independently manages it for you.

So far, that’s two-for-two benefits in favor of the UPREIT over that of a sale—but what about capital gains taxation? Thankfully, the UPREIT structure has your back yet again! The transfer of your portfolio into the UPREIT does not trigger a taxable event because your properties are converted into ownership units in the Umbrella Partnership.

From there, they can be converted into shares and sold just like any other publicly-traded stock. At that point, you’ll trigger taxation—but you also have access to capital that’s easier to work with. It also makes it easier for your heirs to work with what you’ve built if you plan to offer it as an inheritance in the future.

Thankful Businessman with Open Arms at the Field

Moving Forward With Your Exit Strategy

Now that you know you have an alternative, it’s time to put your escape plan into action! You no longer have to fear for your retirement plans while suffering under the weight of a portfolio that is no longer working for you. It’s true: your portfolio is supposed to work for you—not the other way around.

With that in mind, the easiest way to pave your path to financial freedom is by getting in touch with the experts at The Peak Group. We’ve been helping investors who work with us not only meet their financial goals but exceed them with our innovative approaches to investing! Get in contact with us to discuss the burdens of your current portfolio, and we’ll show you how a DFW UPREIT can help put the power of your portfolio where it belongs: back in your hands, and out of your hair!