1031 DST properties

DST Properties – A Hassle Free Investment

A good investment not only fetches a limited share of profit, but it also offers stability. An aware investor should keep exploring different methods of investment and must possess the ability to sustain in any financial circumstances. Planning a stable financial investment certainly doesn’t require a wizard’s skills, but it isn’t that easy either. After all, how can one forget? ‘Investments are subject to market risks.’ To minimize such risks, a pro real estate investor must look for investments that ensure return along with stability. In real estate investment, a DST Property offers the same benefits to its investors.

So, what is a Delaware Statutory Trust?

DST (Delaware Statutory Trust) is a legal entity set up used for business purposes. It is set up under the Delaware Statutory Trust Act, 1988 and recognized by Delaware state law. A DST is formed as a private governing agreement under which a property is managed, administered, held, and invested. Delaware Statutory Trust investments are offered as replacement properties to investors looking for deferring capital gains taxes with 1031 Exchange. We can say that DST’s are boon for small investors as it allows the investors or the taxpayer to have a share of interest in comparatively large and developed properties. DST properties can be spread across various states of the USA. These properties are managed by property managers and professional real estate asset managers.

A 1031 DST properties ensures that the interests of all its investors are protected. Its structure allows small investors to own a fractional interest in professionally managed commercial properties along with other taxpayer or investors, which they may not afford to buy individually. An investor can exchange real property in the Delaware Statutory Trust without the recognition of profit or loss. Every owner in a Delaware Statutory Trust 1031 receives their share of tax benefits, appreciations, and income. The reason why these are preferred over individual real estate investments is that, in DST allows the investor to enjoy a regular flow of income even for small investments. Certainly, DST investments are beneficial than large-scale real estate investments in which investors are often exposed to bigger risks. What makes a DST investment even more beneficial is its structure, though its rules could bother a few investors.

What Are Some 1031 Exchange DST Properties?

Different types of DST 1031 exchange properties that have been available for investors have included retail centers, multifamily apartment buildings, self-storage buildings, or medical offices. The DST properties have long term lease contracts with the tenants. With our 1031 exchange portfolios, there are numerous properties available for our qualified accredited clients, with a typical minimum direct investment of $25,000.

DST 1031 exchange has various financing ratios to satisfy the investor’s exchange requirements of taking on “greater or equal debts,” as defined by the IRC (Internal Revenue Code) section 1031. However, some DST 1031 exchange properties offer all-cash, debt-free in order to mitigate the risk of using financing when purchasing properties. The financing used on DST 1031 properties is typically non-resource to the investor. Non-recourse financing generally is as financing whereby the lender’s only remedy in the case of a default is the subject property itself. The lender is not able to pursue the investor’s other assets beyond the subject property. So, investors could lose their entire principal amount invested in the property in the case of a major tenant bankruptcy, market-wise recession or depression, but their other assets would understand What a 1031 exchange DST is

 

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1031Sponsors.com is a web portal owned by Investment.Net, LLC. The company is functioning in the 1031 exchange market for more than 15 years. Neither Investment.Net nor 1031Property intend to act as a broker or sell any goods or services. 1031Sponsors does not offer legal or tax advice. Tax topics discussed are for educational purposes only and should not be considered professional tax advice. It's recommended that you discuss your situation with your tax or legal advisor. Distributing an investment in different assets or choosing alternative investments involves higher risks than traditional investments and shouldn't be taken for granted. All alternative investment strategies are sold along with a prospectus that discloses all risks, fees, and expenses. These investments are not tax-efficient, and an investor should consult with his/her tax advisor before investing. The investor should be prepared to bear loss knowing that financial risks are attached to such investments.

1031Sponsors help investors residing in the United States complete their 1031 exchanges by providing them well-researched and authentic information related to 1031 exchanges. Services listed on the website 1031Sponsors.com can be modified to make them relevant to the present investment situation in the United States. For additional information, please contact 888-876-6005.