We Decide How an Investment
Ends Before It Begins.

Most real estate investors buy first and worry about selling later. We work the other way around. Every property we acquire or build is designed from the outset to move into a debt-free trust that investors can buy into — and, eventually, into a larger fund that holds many similar properties. This page explains how that works, step by step, in plain English.

Each Business Begins Differently. From the Trust Onward, They're Identical.

Our three businesses acquire property in genuinely different ways, and it's worth being clear about how. The table below sets out those differences. What it also shows is that, once each property reaches the trust stage, the process is the same in every case.

Comparison	Hospitality	Active Adult	Medical & Surgical
How we get the property	We acquire the hotel from its owner through the trust sale process	We build a new community from the ground up with a homebuilder partner	We buy an existing medical building, often from the physicians who practice there
Who we deal with	The hotel's owner, who may continue to manage it	A builder partner	A seller, often a physician group
When it's ready for a trust	Once the structure is agreed and the hotel qualifies	Once about 95% of the homes are rented	Once it's bought and leased
How long that takes	A matter of months	Roughly three years	A matter of months
What happens to any debt	Paid off before the hotel enters the trust	The construction loan is paid off in full	Paid off before the building enters the trust
Who runs the property	Often the owner's own hotel company	RREI leases the whole community and manages it	Usually the tenant itself, under a long lease

One Architecture, Run Three Times in Parallel.

From the trust onward, everything works the same way in all three businesses: the same kind of investor share, the same pool of buyers, and the same optional move into a fund — always into that business's own fund.

How the asset arrivesDebt-free DSTElective §721 → private REIT

Direct §721 contribution may be available for selected hotels

HospitalityFrom owner via DST sale · ~6 months

Lodging DSTInterests sold to 1031 investors

Hospitality REITSector-focused · unlisted
Active Adult BTRDeveloped by JV · ~36 months

Active Adult DSTInterests sold to 1031 investors

Active Adult REITSector-focused · unlisted
Medical & SurgicalAcquired · ~6 months

Medical DSTInterests sold to 1031 investors

Medical REITSector-focused · unlisted

Same trust mechanics, same exchange market, same elective 721 — separate vehicles in every vertical. The lanes never merge.

For overview only; not tax advice. Section 721 treatment is elective, one-way and subject to applicable guidance.

DISCLOSURE
This is a general description of how our structure works, not tax or legal advice. DST interests are securities. Whether any tax benefit applies depends on your own situation, and the IRS sets strict rules for 1031 exchanges and DSTs (including Revenue Ruling 2004-86). Exchanging into a fund under Section 721 is optional, cannot be reversed, and is only available where the tax rules allow it. Please speak with your own tax and legal advisors.

For selected hotels, a direct contribution option may also be available; the Hospitality page explains how to discuss it with us.

A Delaware Statutory Trust, Explained Simply.

A Delaware Statutory Trust — usually shortened to "DST" — is a legal entity set up under Delaware law to hold title to a property. Instead of one owner, a DST can have many investors, each of whom owns a fractional share of the trust. Those shares are called beneficial interests.

What makes a DST so useful is how the IRS treats it. Under a 2004 ruling (Revenue Ruling 2004-86), a properly structured DST is not taxed as a separate business. Instead, each investor is treated as though they own their slice of the real estate directly. That matters because it means a DST share can qualify as replacement property in a 1031 exchange — the rule that lets someone who sells an investment property defer the tax on their gain, provided they reinvest the proceeds in other real estate. Rental income and depreciation pass straight through to each investor in proportion to their share.

There is a catch. To keep that favorable treatment, a DST must stay completely passive. The trustee holds the title, but it cannot actively run a business. So when a property does need hands-on management — a hotel with guests arriving every day, or a community whose residents sign new leases every year — a separate company, called the master tenant, leases the entire property from the trust and runs it. The trust simply collects rent and passes it on to investors.

Selling a Property in Shares, Not All at Once.

Rather than finding one buyer willing to pay the right price on one particular day, the property is divided into shares and sold to many investors over several months.

6–12 months

Target share-sales period

Moving the Property into the Trust

When the owner places the property into the trust, the transfer is structured so that it does not, by itself, trigger any tax. The owner's existing holding period carries over.
Selling Shares, Not the Building

Shares in the trust are offered to investors at a price based on an independent appraisal of the property. The goal is to sell them over roughly six to twelve months.
Tax is Spread Across the Sale

The original owner pays tax on their gain only as each share is sold — spread across the sales period rather than all falling due on a single closing date.
The Trust Stays Hands-off

Where the property needs day-to-day management, an operating company runs it under a master lease, so the trust itself never has to.
Investors Decide the Ending

When the trust reaches the end of its term, each investor chooses for themselves: take cash, reinvest through their own 1031 exchange, or exchange their share for units in a fund under Section 721.

Seven Rules Every DST Must Follow — and How We Plan for Each.

The IRS rules that give DSTs their tax advantages also make them rigid. A DST can't adapt once it's set up, so everything has to be planned properly at the start. Here's how we handle each rule.

Raise more money from investors after it closes

We fund all the reserves the property will need for its entire planned life at the very beginning, so we never need to ask investors for more.

Put all of that together and you can see why a DST has to have an end date. A structure that can't raise money, borrow, reinvest or sign new leases can hold a finished, stable property and pay out its income very well — but it can't respond to change. So every DST is built with a defined term that ends in either a sale or the optional move into a fund. Across the market, DSTs typically run for five to ten years. We set each program's target term when the trust is formed and state it in the offering documents.

A Large, Established Market of Motivated Buyers.

$8.41B

Invested in DSTs in 2025

Up 49% from $5.66 billion the year before.

DST sponsors

Running 92 separate programs as of January 2026.

51%

In residential property

Homes and apartments are the largest single category.

Source: Mountain Dell Consulting; First American Exchange Company. These figures describe the whole U.S. DST market as of January 2026, not RREI's own results.

DST Equity Raised U.S. market · USD billions

+49% in 2025. Hatched bar shows the forecast range.

Source: Mountain Dell Consulting; First American Exchange Company, January 2026. Market-wide figures, not RREI results.

45 days

To identify

180 days

To complete

Most people who buy DST shares have just sold an investment property and are completing a 1031 exchange. The rules give them 45 days to identify what they'll buy next and 180 days to complete the purchase. If they miss either deadline, the entire tax they had hoped to defer — on their capital gain, on the depreciation they claimed over the years, and the additional 3.8% tax on investment income — becomes due. For that buyer, a finished, fully leased, debt-free property that has already been inspected and appraised, and that can close within days, is exactly what they need. That dependable demand is what our exit relies on.

Moving Into a Fund That Owns Many Similar Properties.

At the end of a trust's term, investors can choose to exchange their shares for units in RREI's private REIT for that type of property. It's a significant decision, so here is an honest look at what it offers and what it costs.

A REIT, or real estate investment trust, is a company that owns a portfolio of income-producing properties. Our REITs are private, which means their shares are not traded on a stock exchange. The exchange works under Section 721 of the tax code: investors contribute their trust shares to the REIT's operating partnership in return for “OP units,” which carry the same economic value as REIT shares. Where the tax rules allow it, that contribution is designed not to trigger tax at the time it happens.

What the move can offer	What it costs you
Income from many properties across many markets, rather than a single building	It can't be undone. Once you hold OP units, you can never use them in another 1031 exchange
No tax due at the moment you make the exchange, where the tax rules allow it	You still carry the risk of that one type of property — a hotel fund is still exposed to the hotel industry
The ability to cash out a little at a time, managing your tax bill year by year	You still carry the risk of that one type of property — a hotel fund is still exposed to the hotel industry The fund is private and unlisted. Withdrawals are limited, may involve a waiting line, and can be paused
No forced sale date — you can hold your units for as long as you like	Your units are valued by independent appraisal, not by a live market price
If units are held until death, heirs may receive them with a stepped-up tax basis	Converting OP units into REIT shares is generally a taxable event

Put simply, each of our funds is a private REIT focused on a single type of property, with limited ways to withdraw your money. That is a meaningful step up from owning one building you can't easily sell — but it is not the same as owning shares you can sell on the stock market, and we won't describe it as if it were.

How the Full Path Can Work Across a Lifetime — and Beyond.

Taken together, the steps on this page form a path that can run for decades. It can begin in either of two ways. An investor may sell an appreciated property and reinvest through a 1031 exchange in one of our debt-free trusts, deferring their tax. Or an accredited investor or family office may reinvest returns earned in our other programs into a trust; those returns are taxed when earned, but gains from that point forward can follow the same steps. When the trust ends, they can exchange their share for REIT units under Section 721, trading a single building for a portfolio without triggering tax at that point. From there, they can redeem units gradually, choosing how much gain to recognize each year, or simply hold them. Under current federal tax law, units still held at death generally pass to heirs with a basis stepped up to their value at that time — so the gain deferred over the investor's lifetime may never be taxed.

For a family that holds appreciated real estate, that can mean moving from a concentrated, management-heavy property to a passive, diversified holding that is simpler to divide among heirs — while keeping more of its value invested along the way.

Three honest limits apply. The path only works for investments that qualify for deferral in the first place. Each step has its own costs and restrictions — trust shares can't be sold early, the Section 721 exchange can't be undone, and REIT withdrawals are limited. And the step-up in basis is a feature of current tax law that Congress can change. We encourage every investor to plan this path with their own tax and estate-planning advisors.

Appreciated property1031 exchange
defers the gain

Returns from RREI programsTaxed when earned,
then reinvested

HoldShares in a
debt-free RREI DST

Diversify§721 exchange
into sector REIT

Draw downRedeem units
gradually

Pass onHeirs; step-up in
basis (current law)

The investor’s lifetime

Next generation

Returns are taxed when earned; reinvesting, where a program offers it, starts the path from that point. Hotel sales through a trust are not deferred.

Illustrative design only; not a promised outcome or tax advice. Deferral requires meeting IRS rules; step-up depends on current law, which can change. Loss of principal is possible

DISCLOSURE
This describes how our structure is designed, not a promised outcome, and is not tax, legal or estate-planning advice. Tax deferral depends on meeting strict IRS requirements; the Section 721 exchange is optional and cannot be reversed; and REIT redemptions are limited and can be paused. Step-up in basis depends on current federal tax law, which can change, and on each investor’s estate circumstances. You could lose money. Please consult your own tax, legal and estate-planning advisors.

If Each Business Has Its Own Funds, What's the Advantage of One Firm?

It's a fair question. Because we keep the vehicles separate, investing with RREI doesn't mix your money across healthcare, housing and hotels. The benefit of working with one firm is different, and it's real:

One Set of Standards

We apply the same discipline to every deal — how we test demand, how much we're willing to borrow, how we size reserves — so if you've examined how we work in one business, you understand how we work in all three.

A Structure That's Already Built

The trust setup, the master-lease design and the path into a fund are designed once and then reused. Each new deal benefits from the last, instead of starting from scratch.

The Right Door for Your Situation

A hotel owner, an investor looking for exposure to housing, and a group of physicians who own their building can each come in through the vehicle that fits them.

One Relationship

One set of principals, one reporting standard and one point of contact, however many of our businesses you invest in.

What it doesn't do is spread your risk across different kinds of property inside any single investment. We'll never suggest that it does.

Key Terms, in Plain English.

Search terms

Accredited investor: An investor who meets SEC income, net-worth or professional-license tests. Only accredited investors can invest in our offerings.
1031 exchange: A tax rule that lets someone sell an investment property and defer tax on the gain, as long as they reinvest the proceeds in other real estate within strict deadlines.
45 / 180: The 1031 deadlines: 45 days after a sale to identify replacement property, and 180 days to finish buying it.
Delaware Statutory Trust (DST): A trust that holds a property and lets many investors each own a share of it. Each share is treated as direct ownership of real estate for tax purposes.
Beneficial interest: An investor's share in a DST.
Master lease / master tenant: A single lease under which one company rents the entire property from the trust and runs it, so the trust can stay passive. That company is the master tenant.
Section 721 exchange / UPREIT: Contributing property — or DST shares — to a REIT's operating partnership in return for OP units, designed to defer tax. An "UPREIT" is a REIT set up to accept property this way.
OP units: Units in a REIT's operating partnership, worth the same as REIT shares and convertible into them over time.
REIT: A real estate investment trust — a company that owns a portfolio of income-producing properties. Ours are private and not traded on an exchange.
Stepped-up basis: Under current federal tax law, property inherited at death generally takes a new tax basis equal to its value at that time, so gain that built up during the owner's lifetime is generally not taxed.
Depreciation recapture: Tax owed on a sale to "pay back" the depreciation deductions claimed while owning the property.
FF&E: Furniture, fixtures and equipment — the beds, furnishings and equipment in a hotel. Taxed differently from the building itself.
PIP: Property Improvement Plan — the renovation a hotel brand requires from its owners, typically every seven to ten years.
Stabilized: Finished and leased or operating at a steady level — for our active adult communities, about 95% occupied.
Net lease (triple-net): A lease in which the tenant pays the property's operating costs — taxes, insurance and upkeep — on top of rent.

We Decide How an Investment
Ends Before It Begins.

Each Business Begins Differently. From the Trust Onward, They're Identical.

One Architecture, Run Three Times in Parallel.

A Delaware Statutory Trust, Explained Simply.

Selling a Property in Shares, Not All at Once.

Moving the Property into the Trust

Selling Shares, Not the Building

Tax is Spread Across the Sale

The Trust Stays Hands-off

Investors Decide the Ending

Seven Rules Every DST Must Follow — and How We Plan for Each.

Raise more money from investors after it closes

Borrow money or refinance

Reinvest the money from a sale

Hold on to surplus cash

Carry out major renovations

Sign new leases or change existing ones

Let its trustee actively manage the property

A Large, Established Market of Motivated Buyers.

Moving Into a Fund That Owns Many Similar Properties.

How the Full Path Can Work Across a Lifetime — and Beyond.

If Each Business Has Its Own Funds, What's the Advantage of One Firm?

One Set of Standards

A Structure That's Already Built

The Right Door for Your Situation

One Relationship

Key Terms, in Plain English.

Three Businesses. The Right Door for Your Situation.

We Decide How an Investment Ends Before It Begins.

Each Business Begins Differently. From the Trust Onward, They're Identical.

One Architecture, Run Three Times in Parallel.

A Delaware Statutory Trust, Explained Simply.

Selling a Property in Shares, Not All at Once.

Moving the Property into the Trust

Selling Shares, Not the Building

Tax is Spread Across the Sale

The Trust Stays Hands-off

Investors Decide the Ending

Seven Rules Every DST Must Follow — and How We Plan for Each.

Raise more money from investors after it closes

Borrow money or refinance

Reinvest the money from a sale

Hold on to surplus cash

Carry out major renovations

Sign new leases or change existing ones

Let its trustee actively manage the property

A Large, Established Market of Motivated Buyers.

Moving Into a Fund That Owns Many Similar Properties.

How the Full Path Can Work Across a Lifetime — and Beyond.

If Each Business Has Its Own Funds, What's the Advantage of One Firm?

One Set of Standards

A Structure That's Already Built

The Right Door for Your Situation

One Relationship

Key Terms, in Plain English.

Three Businesses. The Right Door for Your Situation.

We Decide How an Investment
Ends Before It Begins.