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What is the secondary market like for QOF investing?

How can a secondary QOF investor purchase a QOF interest from an original QOF investor? Is there a time limit for this?


Answers
  • Matthew Rappaport
    March 31, 2020

    The time limit would probably be Dec. 31, 2026. The secondary market does not figure to be robust unless some of these REITs eventually IPO. Nobody has yet formed a marketplace to my knowledge, and even so, it'll probably be difficult to find a match between buyer and seller. Delaware Statutory Trusts similarly lack a secondary market, and they're similar investments that have been around for years.

  • Peter McNeil
    March 31, 2020

    This does not currently exist. There are only auction sites such as Central Trade and Transfer. Likely will get a buy at 70% of net asset value.

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