Q1: Will Nova Sky undervalue my home?
Not at all. Nova Sky uses industry-standard underwriting practices to offer fair-market valuations on all rental properties. Our goal is to acquire homes that align with the performance goals of the Nova Sky Fund—ensuring a win-win for both the investor and the partnership.

Q2: What’s the difference between a 721 Exchange, a 1031 Exchange, and DSTs?

• A 1031 Exchange allows you to sell a property and defer capital gains by acquiring another “like-kind” investment property. However, it involves strict timelines and continued active ownership.
• A Delaware Statutory Trust (DST) offers passive investing, but typically comes with high fees, limited liquidity, and a fixed term of 3–7 years.
• A 721 Exchange, on the other hand, allows for a direct exchange of property for partnership units, offering tax deferral and true passivity without the strict reinvestment timelines or ongoing landlord responsibilities.

Q3: How is the Nova Sky Fund valued?
The fund is revalued quarterly using a mix of automated valuation models (AVMs) and independent third-party appraisals. Every property in the fund is professionally appraised at least once every 24 months to ensure transparency and accuracy.

Q4: What types of properties are eligible for exchange?
You can contribute single-family homes, duplexes, triplexes, or fourplexes—as long as they meet the Nova Sky Fund’s financial return criteria. Properties with lower mortgage balances (typically under 50% of value) are more likely to qualify.

Q5: What happens if Nova Sky Homes goes bankrupt?
Nova Sky Homes serves as the General Partner and fiduciary for the Fund. The Fund itself is a separate legal entity and will continue to operate even if management transitions.
We’ve also established a strategic agreement with Roofstock—a national rental platform managing over 25,000 homes across 35+ markets—to step in as Fund manager if needed, ensuring continuity and protection for our investors.

Q6: Will I receive depreciation benefits from my investment?
Yes. If your contributed property has any unused depreciation, you will continue to benefit from it within the Nova Sky Partnership structure—preserving the tax efficiency of your original investment.