DST Investing Across Market Cycles

One of the common topics that frequently pops up in investment conversations these days is discussion about what stage of the “cycle” the market is in. Why does cycle matter, and what does the current cycle mean for DST investment opportunities?  Simply put, market cycles refer to the periodic ebbs and flows that occur in the economy and across individual sectors, such as tech, energy and commercial real estate. Markets rise and fall across four … 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 Exchange Debt Rules: What Does it Mean to “Replace Debt” in a 1031 Exchange?

A large commercial building governed by 1031 exchange debt rules

By Alex Madden, Vice President, Kay Properties & Investments Facts About 1031 Exchanges If you are an investor and you sell a property whose value has increased, you will have to pay certain types of taxes. For instance, you will have to pay federal and state capital gain taxes. If the original seller of the property had claimed depreciation expenses, you will be required to pay depreciation recapture taxes. You can defer these taxes if … Read More

Picking the Right Delaware Statutory Trust Companies

By:  The Kay Properties Team Investors are often faced with investment decisions that require them to evaluate various investment options, like where to invest and with whom. When it comes to Delaware Statutory Trusts or DSTs, more often than not, these decisions need to be made within short timeframes and strict IRS requirements as investors scramble to find the perfect exchange properties within 45 days from the sale of their previous rental property. And these … 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