Your 1031 replacement-property options.
Selling real estate into a 1031? These are the replacement options investors weigh — and where producing oil and gas royalties, Peregrine's specialty, fit among them.
Side-by-side comparison.
Yield ranges and hold horizons are typical, not guarantees. Specific deals vary. Tap a row to jump to the deep section.
| Option | Typical yield | Hold horizon | Closing time | Best for |
|---|---|---|---|---|
| Oil & gas royalties | Varies | Generational | 2–4 weeks | Passive monthly income, no management, no capital calls, diversified |
| NNN commercial | 5–7% | 7–10 yrs | 3–4 weeks | Predictable income, defined cap rate, fully passive |
| DST | 4–6% | 7–10 yrs | ~1 week | Day-1 identification, institutional grade, limited liquidity |
| Farmland | 1–4% | 5+ yrs | 4–6 weeks | Tangible asset, generational hold, appreciation focus |
NNN commercial real estate.
Single-tenant retail or industrial property on a triple-net lease. The tenant pays taxes, insurance, and maintenance. You collect rent and watch the principal compound.
This fits if…
- You want predictable monthly income with a defined cap rate.
- You’re comfortable holding for 7–10 years until the natural exit.
- You don’t want to manage anything operationally.
Probably not the right call if…
- You need liquidity within 12 months.
- You want upside tied to oil and gas prices.
- You’re looking for under-$500K replacement; most NNN deals start there.
Delaware Statutory Trusts (DSTs).
Fractional interest in institutional-grade real estate, professionally managed. The seller buys shares in a trust that owns the underlying property. Fully passive.
This fits if…
- You’re tight on the 45-day identification clock.
- You want institutional-grade exposure without sole ownership.
- You’re comfortable with limited liquidity until the trust’s eventual sale.
Probably not the right call if…
- You want operational control.
- You need certainty on the exit date.
- You want to refinance to pull cash later (DSTs disallow this).
Farmland and ranchland.
Productive agricultural real property. Lease-rate income with long-term land appreciation. Tangible. Often the right answer for inherited owners who want to stay in soil rather than spreadsheets.
This fits if…
- You like the idea of being able to drive to your property.
- You’re building generational hold positions.
- Land appreciation matters more to you than monthly cash flow.
Probably not the right call if…
- You need 5%+ current cash yield.
- You don’t want to deal with lease renewal cycles.
- You’re uncomfortable with farm-specific risks (weather, commodity cycles).
Oil & gas royalties.
Peregrine's specialty, and the reason most clients come to us. You acquire a diversified portfolio of producing royalty interests — a share of monthly revenue from wells across multiple operators and basins — with no tenants, no management, and no capital calls.
This fits if…
- You want passive monthly income without tenants or management.
- You're tight on the 45-day clock — royalties can be identified right away.
- You want to diversify out of a single building or market.
Probably not the right call if…
- You want a fixed, predictable monthly figure (royalty income moves with price and production).
- You need to refinance the asset to pull cash out later.
- You're uncomfortable with commodity-price exposure.