1031 EXCHANGE / DST

For accredited investors seeking property investment opportunities, the advantage of deferring capital gains, passively owning institutional quality real estate-diversified by geography and property type, with the potential to earn an annual cash flow paid monthly, possibly tax-advantaged, could make a 1031 DST Like-Kind Exchange a key wealth building strategy for you, your family and your heirs.

USING A DELAWARE STATUTORY TRUST (DST) TO COMPLETE YOUR 1031 EXCHANGE.

In several cases, 1031 Exchanges are completed by the investment property owner with the help of a real estate agent. However, there is another alternative — a passive solution to satisfying a 1031 Exchange — and that is a Delaware Statutory Trust (DST).

Properly structured DSTs are recognized by the IRS as qualified replacement property for real property. Investors in a DST are not direct owners of the real estate. The trust holds title to the property, for the benefit of many investors, each of whom has a “beneficial interest” and is treated as owning an undivided fractional interest in the property.

Simply put, DSTs provide a turn-key solution for investors who may not have the time, energy or real estate expertise to find and/or manage a replacement property. DSTs can be used for all or a portion of the sales proceeds. Also, be mindful that there are fees and expenses associated with a DST.

WITH ITS UNIQUE STRUCTURE, A DST CAN OFFER MANY BENEFITS TO INVESTORS.

It is important to note that all investments in a DST involve certain risks, including the potential lack of return, loss of principal and tax consequences. The performance of a DST will depend on the tenant’s ability to pay rent. Properties may be leveraged and will be liquidated at the discretion of the DST, which may encounter difficulty in selling any or all of them. No public market exists, nor is likely to develop for the DST interests.

• Professional Asset and Property Management

• Passive Ownership

• Non-Recourse Institutional Financing

• Lower Minimum Investments

• Portfolio Diversification

WHO SHOULD CONSIDER A DST INVESTMENT?

• Real estate owners who wish to consolidate their holdings of multiple smaller properties into fewer large properties for ease of management.

• Real estate owners who are seeking to diversify their real estate portfolio into higher quality investment grade real estate, but lack the experience, resources or capital required to manage or acquire larger institutional quality real estate.

• Real estate owners who are retiring or seeking a lifestyle change and would like a more passive role in their real estate.

• Real estate owners who don’t want to be a landlord anymore and would like to defer their capital gains tax.

• Real estate owners who are seeking potentially greater cash flow and possible appreciation return potential than they are currently receiving from their real estate investments. Note all investments, including real estate, carry the risk of loss in addition to possibility of gain.

WHY USE A FINANCIAL ADVISOR FOR 1031 REPLACEMENT PROPERTIES?

Selling an investment property and completing a 1031 Exchange is an important financial decision. The assets involved in a 1031 Exchange may represent a substantial amount of money and a significant portion of net worth. We recognize and appreciate this and take our time to provide you the information, knowledge and guidance you need, regardless the size of your exchanged based on the dollar value.

There are several parties involved in a 1031 Exchange including accountants, attorneys, sponsors, and more – each playing an important role. Our role, and main goal, is to simplify the process and help you fully understand the bigger picture, and what makes sense for your unique financial goals and situation.

dst sherpa IS HERE TO:

• Help you make sense of a complicated process.

• Act as a sounding board.

• Listen and answer your questions and concerns.

• Get to know you and take the time to thoroughly inform you.

• Empower you to feel confident in your financial decisions.

If You Are Interested, We Can Help You Implement Plans the Way YOU Want.

Schedule a BRIEF call with us today!