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 deadline and 180-day closing deadline.

Potentially increased cash flow:

  • When conducting a 1031 exchange, property owners calculate the cash-on-cash return they receive from their current property. From our observations at Kay Properties, we speculated in 2015 that DSTs have a projected cash-on-cash return between 5-8%. These potential benefits are gaining notice from the real estate community and driving up its demand.

Increased Diversification*:

  • Real estate owners often have a large amount of equity in a single property. However, many investors have become increasingly wary of placing all of their capital in one property. This is the real estate equivalent of placing all of one’s retirement savings in a single stock. DST properties provide investors the option to acquire several portions of many different properties. Diversifying a real estate portfolio by selecting properties in various businesses and locations reduces, but does not eliminate, the risk of investment loss.

Passive ownership:

  •  Investing in a DST allows you to transfer everyday management tasks to the property’s tenant. This allows DST owners to redirect this time towards family and other passions, while still potentially reaping the benefits of the investment.

To learn more if a 1031 DST exchange is right for you, sign up today!

*Diversification does not guarantee profits or protect against losses.

About Kay Properties and

Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The 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 a DST secondary market.  Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over $30 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.

Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital, member FINRASIPC.

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