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 to be important, she suggested that diversification would make sense for them. As a result, we reviewed diversifying across many variables:
- Geographic location to potentially lower the risk of concentration of any particular area of the country having economic problems, weather and climate issues, etc.
- Asset classes such as multifamily, medical office, single tenant net lease retail, industrial, etc.
- Tenants so that the leases were the obligation of multiple companies across multiple industries.
In the end, this client decided to diversify into multiple DST properties, as he and his wife were just not comfortable with the advice from the other registered representative and the concentration risk that a single DST property may pose.
But taking the time to really listen to the needs of the clients, we at Kay Properties try to understand what is important for each individual’s situation and then to respond to the client by focusing on what is important to them and to ultimately help our clients move in the direction that is right for them. We don’t just sell to our clients. We listen. We understand. We advise.