July 15th 1031 Exchange Deadline Approaching! How Fast Can I Close on DSTs?

By: Orrin Barrow, Vice President – Kay Properties and Investments, LLC Many investors were granted an extension on their 1031 exchanges so that they would not have to identify their replacement property until July 15th, 2020. However, we are quickly approaching this deadline for investors to properly identify and select their replacement property. Given the very unsure nature of the economy and how Covid-19 will continue to affect us, many investors have been reaching out … Read More

DST 1031 Exchange Investment Strategies: Why 1031 Exchange Diversification Matters

By: Orrin Barrow, Vice President, Kay Properties and Investments, LLC The Delaware statutory trust was invented so investors would have the ability to utilize their 1031 exchange proceeds to diversify* across different 1031 DST sponsor companies, asset classes, submarkets and investment strategies. We here at Kay Properties and Investments have access to a diversified DST 1031 marketplace platform (kpi1031.com) to be able to build well diversified DST portfolios for our clients who are currently in … Read More

Looking for DST Properties for Sale? Why A Comprehensive 1031 DST Marketplace is Imperative for 1031 Exchange Investors

By: Orrin Barrow, Vice President, Kay Properties and Investments, LLC Many investors that are looking for DST properties for sale for their 1031 exchanges find the comprehensive Kay Properties marketplace platform at www.kpi1031.com very helpful. The Kay marketplace typically features 20 to 40 DST offerings and 25+ DST sponsor companies for investors to choose from. Along with the www.kpi1031.com platform providing access to the marketplace of DST 1031 properties for sale it also features custom DSTs only … Read More

In a 1031 Exchange? Why Waiting until after COVID-19 to Complete Your Exchange Could Potentially be a Bad Idea

As a result of the COVID-19 pandemic the IRS issued Notice 2020-23 which provided a multitude of tax extensions including the extension of the 1031 exchange deadlines. The typical investor in a 1031 exchange will have 45 days from the sale date to identify a replacement property, and 180 days to complete the purchase of that same property. With the IRS’ notice the 45-day, and 180-day deadline has been extended until July 15th 2020 for … Read More

What Properties Can be Used In a 1031 Exchange?

By: The Kay Properties Team If you are interested in selling your real estate, the phrase “1031 Exchange” has certainly come up once or twice in your research, as an outright sale can trigger large tax consequences. The capital gains and depreciation recapture taxes can be a serious dent in the return you expected to earn from the sale of your real estate. A 1031 exchange is a process by which an investor can defer … Read More

1031 DST Investments: Why All-Cash/Debt-Free Delaware Statutory Trust Properties

10 Reasons to Consider All-Cash/Debt-Free DST Properties For Your 1031 Exchange No refinancing risk. Flexibility to hold through any potential market downturns, credit crunches, recessions and/or depressions. Provides 1031 investors the ability to diversify* a portion of their exchange dollars into an all-cash/debt-free property in an effort to lower potential risk. Eliminates the risk of taking on equal or greater debt in future 1031 exchanges. If an investor that was debt free purchases leveraged properties … Read More

DST 1031 Exchange: What is it and How Might it Help with my Current 1031 Exchange

Two people making an agreement about a dst 1031 exchange

So you’ve decided to do a 1031 exchange, meaning you have decided to sell your property and invest that money in another property in order to defer the federal capital gains tax, state capital gains tax, depreciation recapture tax and the Medicare surtax. Smart! divBut are you just moving from one headache to another? If you’re looking to retire from property management but you still want to defer your taxes using a 1031 exchange and … Read More

What is a DST 1031? Delaware Statutory Trust Ownership Explained

What is a DST 1031? I’m hearing my real estate investor friends and CPA mention it may be a good exit strategy for my appreciated real estate but I need to know more about it… First, let us explain a DST. DST stands for Delaware Statutory Trust. Here’s the full technical definition: a separate legal entity established under a trust created for the purpose of holding, managing, administering, investing, or operating a property, or for … Read More

10 Reasons We Like FedEx as a Tenant for our 1031 DST Investments

FedEx made $60.3 billion in revenue at the end of the 2017 fiscal year FedEx made $5 billion record operating profit at the end of the 2017 fiscal year FexEx has over 55 million unique visitors online per month FedEx gets 125 million package-status tracking requests daily FedEx moves an average of 14 million shipments each business day FexEx ships to over 220 countries and territories FexEx has been recognized by Fortune Magazine as one … Read More

How Real Estate Agents and Brokers are Using Kay Properties 1031 Delaware Statutory Trust (DST) Properties To Get More Listings and Help Their Clients

A commercial building sold by a 1031 Delaware statutory trust broker

Real estate agents and brokers in today’s market can utilize Kay Properties Delaware Statutory Trust (DST) properties in a number of ways. This article goes into detail as to how numerous agents and brokers have worked with Kay Properties over the years to help their clients involved in 1031 exchanges and all the while growing their business through new listing opportunities.

Delaware Statutory Trust Relations & Portfolios—What? Who? Where? When? Why? …And How?

A commercial building used to demonstrate the various Delaware statutory trust relationships

By: Jason Salmon, Senior Vice President – Kay Properties and Investments, LLC A DST is a Delaware Statutory Trust. Further, the DST structure has been adopted as a form of ownership used to allow private investors to own fractional interests in institutional real estate. Further still, this form of passive real estate ownership affords investors the opportunity to diversify* their real estate holdings by geography, property sector and asset manager. Moreover, DSTs qualify as “like-kind” … Read More

Delaware Statutory Trust Tax Treatment, Taxation, and Tax Returns: DST 1031 Exchange Market Insights and Thoughts

A woman and a man researching Delaware statutory trust tax reporting on their computer

By: Dwight Kay When considering a Delaware Statutory Trust property for a 1031 exchange, investors and their CPAs must also consider the tax treatment of DST properties – How is a Delaware Statutory Trust taxed? This article gives a brief overview of the various Delaware Statutory Trust tax treatment and DST taxation topics that investors should understand and go over with their CPA and tax attorney prior to making any investment decisions. DSTs are considered … Read More

Case Study: When a DST property backup became a clear solution.

By: Jason Salmon, Senior Vice President and Managing Director of Real Estate Analytics – Kay Properties and Investments, LLC Based on our history and the hundreds of clients that we’ve worked with for their 1031 exchange replacement property—I believe that this case will be highly relevant and relatable to a lot of people. A real estate investor named Ted inquired with Kay Properties a few months prior to the sale of his investment property that … Read More

DST 1031 Exchange Example Case Study: Diversification Matters

By: Betty Friant, Senior Vice President Recently a 1031 Exchange client, who was already working with another registered representative on his Exchange, reached out to Kay Properties to receive a second opinion on his 1031 exchange DST selection. This client had started to invest the entire amount from the sale of his property into one single DST. After discussing with his wife how at Kay Properties we believe diversifying* among multiple DST offerings and sponsors … Read More

Delaware Statutory Trust Fees: Delaware Statutory Trust Market Thoughts and Insights

When an investor is considering a Delaware Statutory Trust, one of the items that should be reviewed is the upfront allotment of fees. This article gives a brief description of the upfront fees that Delaware Statutory Trust properties can contain. First, DST fees include real estate related fees such as escrow, title, appraisal, environmental report, property condition report, legal, closing costs, etc. These are fees that if an investor would likely to incur if they … Read More

12 Reasons Why We Like Florida Delaware Statutory Trusts

We recently brought to market, in cooperation with one of our joint-venture partners, an all-cash/debt-free commercial office property opportunity in Tampa, Florida. It is currently available to our accredited clients as a Delaware Statutory Trust (DST) 1031 exchange offering via Regulation D, Rule 506c. Here are 12 reasons why we like Tampa, FL: Tampa is the number-one city people moved to in 2016 according to Realtor.com Tampa is located in the state of Florida which … Read More

Delaware Statutory Trust Problems – 1031 Exchange Market Insights & Thoughts

A row of buildings bought after reading delaware statutory trust reviews

By: Dwight Kay Many 1031 exchange investors researching Delaware Statutory Trust (DST) properties are looking to find out if the DST 1031 concept is “too good to be true”. What’s not to like about mailbox money from an institutional piece of real estate, that is prepackaged and easily closed on in 3-5 days? Well, understanding potential Delaware Statutory Trust problems and things that can go wrong is something that every investor must be aware of … Read More

Delaware Statutory Trust Pros & Cons

Kay Properties, a company that helps you understand the Delaware Statutory Trust pros and cons

Delaware Statutory Trust Pros & ConsBy Dwight Kay, Founder and CEO, Kay Properties and Investments Real estate investors love Delaware Statutory Trusts for their 1031 exchanges because they can provide individuals a unique opportunity to defer capital gains taxes, eliminate active management responsibilities, and achieve the potential for regular monthly cash distributions. However, the first step to using the DST 1031 exchange real estate investment strategy is to first understand the pros and cons of … Read More

DST 1031 Exchange Case Studies

Challenge: The client was looking for specialized and focused help in evaluating DST 1031 properties for her 1031 exchange. She had been introduced to a financial advisor that not only did not fully understand how 1031 exchanges and investment real estate work, but also only had two DST properties available. The client was then introduced by a family friend to Kay Properties and Investments, LLC. She was relieved to find a group that truly specialized … Read More

NNN 1031 Choice Implodes: DST Available for Identification in 1031 Exchange

A person helping another person during the process of identifying a 1031 exchange

Challenge: Clients of Kay Properties and Investments identified two whole properties and a number of DST (Delaware Statuary Trust) properties for their 1031 Tax Deferred Exchange using the 200% rule. The 200% rule allows an investor to identify up to 200% of the fair market value of the relinquished property instead of just choosing three properties. After the Identification Period expired, one of the whole properties the clients had under Letter of Intent was withdrawn … Read More

Four Reasons Why 1031 DST Exchanges are Growing in Popularity Plus Potential Delaware Statutory Investment Returns:

Deferral of Capital Gains Tax: This is the primary reason why real estate investors use 1031 exchanges. After selling a real estate property, investing in a like-kind property allows the owner to defer their capital gains tax. One DST benefits that has caught the industry’s attention is their prepackaged structure. This allows investors to close DST business deals in potentially as little as 3-5 business days. This timeframe easily fits within the mandatory 45-day identification … Read More

Who Is Who – The Roles of DST Industry Players

Many investors find it hard to keep the players in the DST 1031 industry straight in their minds. Who is the sponsor, the broker dealer, and the registered representative? This article seeks to answer these questions and provide a background for potential DST 1031 investors on “who is who.” DST Real Estate Sponsor Companies A real estate sponsor company creates the DST 1031 property for investors to be able to invest in. The creation of … Read More

What Are the Risks of DST 1031 Properties?

DST 1031 properties are comprised of real estate and contain the same risks that all other forms of real estate entail. The following discussion on risks is meant to be an overview of potential risks and not an exhaustive list. We encourage investors to review the risk section of each potential DST 1031 property’s offering materials before investing. All forms of real estate investing, whether buying homes, duplexes, apartment buildings, commercial properties, including DST 1031 … Read More

DST as a Cash Investment Vehicle

Many of our clients have purchased DST properties as purely discretionary cash investments, even though they are not in a 1031 exchange. The reasons why investors will do this are many. Two of the main reasons that we will see are: Clients that have exchanged with us into DST 1031 properties over the years will purchase DST properties as a cash investment due to wanting to continue to diversify* out of the stock/bond markets as … Read More

Why Do 1031 Investors Choose DST Properties Over Traditional NNN Properties?

Many clients that have been interested in doing a 1031 exchange into a NNN property find the DST 1031 property particularly attractive. These same clients often think that the only way for them to become passive owners of real estate is to purchase a NNN leased property; however, they often are very skeptical about placing such a large amount of their net worth into one single NNN property. The DST 1031 option has become an … Read More

Delaware Statutory Trust Properties – Illiquidity and Exit Strategies

Two of the questions that often come up from our clients considering a DST 1031 exchange property are 1) How liquid are DST 1031 properties? and 2) What are the exit strategies? First off, it is important to note first and foremost that DST 1031 properties are real estate, and like all other types of real estate they are inherently illiquid. You are not buying shares of stock listed on a public exchange that you … Read More

What Are the Potential Benefits of Exchanging into a Delaware Statutory Trust Property?

By Dwight Kay There are a number of potential benefits of exchanging into a Delaware Statutory Trust (DST) 1031 property. It is important to note that these should be carefully weighed with the potential risks that we have outlined at the end of this article. You should also read the risk section of each DST 1031 property’s offering materials in detail prior to investing. Eliminating the day-to-day headaches of property management Many of our clients … Read More

DST 1031 Properties – The Basics

By Dwight Kay A Delaware Statutory Trust (DST) is an entity that is used to hold title to investment real estate. In some ways, this is similar to how a Limited Liability Company (LLC) can hold title to real estate; however, unlike an LLC, a DST 1031 property will qualify as “like kind” exchange replacement property for a 1031 exchange. This qualification as “like kind” property is pursuant to the Internal Revenue Code Section 2004-86. … Read More

1031 Exchange Fundamentals

By: Dwight Kay, Founder – Kay Properties and Investments, LLC What is a 1031 Exchange? The 1031 exchange is thought by many to be one of the more powerful tax deferral tools currently available to taxpayers. Under the Internal Revenue Code Section 1031 taxpayers can defer their capital gains tax on the sale of property if they reinvest the proceeds in like-kind property. IRC Section 1031 provides that “No gain or loss shall be recognized … Read More