Suitability for DPPs and REITs

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Chapters in this video

  1. 0:00 The DPP vault: 7-12 year lockup and total loss risk
  2. 2:24 Why retirees and moderate-income clients fail the DPP match
  3. 3:26 Three REIT flavors: publicly traded, non-traded, mortgage REITs
  4. 5:37 DPP versus publicly traded REIT: the suitability showdown
  5. 6:27 Rapid-fire exam recap

What this video covers

  • Why the 7-12 year hold period and potential total loss make DPPs suitable only for high-net-worth, high-tax-bracket investors with adequate financial resources
  • How passive loss deductions drive DPP appeal, and why low-tax-bracket investors get minimal benefit from them
  • Why retirees, moderate-income investors, and anyone needing liquidity or reliable income are automatically unsuitable for DPPs
  • The three REIT types: publicly traded REITs, non-traded REITs, and mortgage REITs, and how their suitability profiles differ sharply
  • Why mortgage REITs carry the highest interest rate risk due to spread compression between borrowing costs and mortgage yields
  • Why non-traded REITs are not liquid despite the REIT name, and why confusing them with publicly traded REITs is a classic exam trap
  • The side-by-side contrast: DPP illiquidity versus publicly traded REIT liquidity; total-loss risk versus diversification; tax-bracket dependence versus broad accessibility

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