How do I use a DST to replace the debt in a 1031 Exchange

By: Dwight Kay, CEO and Founder of Kay Properties and Investments and the Kay Properties team When doing your calculation on replacement value for a 1031 Exchange, don’t leave out an important part of the equation – replacement debt. One of the basic 1031 Exchange requirements necessary to qualify for a full tax deferral on capital gains taxes from the … Read More

How to guard against the pitfalls of financing used in DSTs

By Dwight Kay, CEO of Kay Properties and Investments and the Kay Properties Team Investors going into a DST investment are often laser focused on the property they are buying. Where is their money going – perhaps it’s an apartment complex in Dallas or a portfolio of dollar stores in the Midwest? Investors often “kick the tires” so to speak … Read More

Do DSTs work for a 1033 exchange due to eminent domain or involuntary conversion?

By Dwight Kay, CEO of Kay Properties and Investments and the Kay Properties Team Understanding the rules of a 1033 Exchange aka Involuntary Conversion DSTs provide replacement options for a property sold under eminent domain. Property owners initiating a 1031 Exchange often end up in that situation by choice after deciding to sell an investment property or business. But what happens … Read More

The Tax Advantages of Zero Coupon DSTs

By Betty Friant, Senior Vice President, Matt McFarland, Vice President and the Kay Properties Team Investing in a Zero Coupon DST, frankly, sounds a little crazy. Why would anyone want to buy into a DST with no cash flow? The simple answer is for the tax advantages. How does a Zero Coupon DST work? In a Zero Coupon DST, all … Read More

How To Create a Diversified DST Portfolio

By Jason Salmon, Senior Vice President and the Kay Properties & Investments Team  Diversification is one of the basic building blocks to any investment portfolio strategy. It’s the simple concept of not wanting to put all of your eggs in one basket. Diversification across asset types helps to avoid concentration risk – and potentially a basket full of broken eggs. Diversification … Read More

Generational Assets: Leveraging DSTs to Transfer Wealth

By Jason Salmon, Senior Vice President and the Kay Properties Team at Kay Properties & Investments, LLC  Real estate has long been a popular asset used to build generational family wealth. One of the key tax advantages to passing real estate property to heirs is that those recipients benefit from a step-up in basis. That step-up is much like hitting … Read More

Understanding the potential advantages of the 200% Rule in a 1031 exchange

By Dwight Kay, Founder & CEO; Betty Friant, Senior Vice President and The Kay Properties Team “Is that your final answer?” You may recognize the question made famous by the popular TV game show Who Wants to Be a Millionaire? Choosing the right answer in this game gives you a shot at winning big money, while the wrong answer leaves … Read More

Good to Have a 1031 Exchange Backup When You Need One: Kay Properties Helps DST Investors Avoid a Potentially Significant Tax Consequence

By: Alex Madden, Vice President, Kay Properties and Investments, LLC Kay Properties and Investments is pleased to announce a completed exchange for an investor who did not originally intend to invest into Delaware Statutory Trust (DST) properties. Vice President Alex Madden explained: “After discussing the client’s background in real estate investing, he expressed his first choice was to continue with … Read More