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 well as wanting to derive a tax-advantaged potential income stream.
Some clients will purchase DST properties via cash as a test run for 1031 exchanges in future. These clients like the idea of the DST 1031 but have not actually sold their buildings yet, so to help them build comfort with the DST 1031 they will make a cash investment prior to actually doing a large 1031 exchange.
If you would like a list of DST properties available for accredited cash investors, please visit kpi1031.com and register for free access.
Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and an active DST secondary market. Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over 15 Billion of DST 1031 investments.
This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed.
Securities offered through WealthForge Securities, LLC. Member FINRA / SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities.