The Delaware Statutory Trust was created to allow property owners or investors to sell a residential or commercial property and defer the capital gains tax that is present from the sale after the transaction is completed. The Delaware Statutory trust 1031 exchange provides investors with the opportunity to obtain a property that is already professionally managed while working with Kay Properties. This makes it possible to earn income off of the property without asset or property management for added convenience and to avoid the stress that can come along with it.
This makes it possible for investors to increase and build their wealth. Using the Delaware Statutory Trust is effective in reaping more rewards when acquiring office properties, self-storage buildings, leased retail centers, and apartment complexes. Investors must follow the 1031 exchange 45 day rule, which requires identifying the replacement properties within 45 days of selling the relinquished property. The details must be put into writing and include your signature before it’s delivered to the other individual.
The DST 1031 exchange is considered to be attractive to investors because it doesn’t require active real estate management to increase revenue. It’s considered to be a potential for non-recourse debt versus recourse debt. It also provides investors access to institutional-grade real estate for less money. There’s less liability to the lender and offers protection to the other properties that the investor owns. Investors can have the opportunity to diversify and spread their risk with different assets instead of putting most of their money in one place.
