Good to Have a 1031 Exchange Backup When You Need One: Kay Properties Helps DST Investors Avoid a Potentially Significant Tax Consequence

By: Alex Madden, Vice President, Kay Properties and Investments, LLC

Kay Properties and Investments is pleased to announce a completed exchange for an investor who did not originally intend to invest into Delaware Statutory Trust (DST) properties. Vice President Alex Madden explained: “After discussing the client’s background in real estate investing, he expressed his first choice was to continue with active management for a few more years before he began moving his substantial real estate portfolio into more passive investments like DSTs. Our client realized that it may be prudent to use the Three Property Rule to identify two properties he could actively manage, and one DST in the event he was not able to complete his purchase within the time requirements of the 1031 exchange.”

Senior Vice President Jason Salmon went on to say “We were able to leverage out deep relationships within the industry to hold the client’s reservation while he conducted due diligence on his first two properties. In the end, neither passed his due diligence. Had he not formally identified a DST during his identification period he would have been facing a difficult decision between purchasing properties which did not meet his due diligence requirements, or facing a potentially significant tax consequence. Our Client was happy to have an alternative and was excited to have the option to use the tax deferral found in the 1031 exchange and DSTs.”

About Kay Properties and

Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The platform provides access to the marketplace of typically 20-40 DSTs from over 25 different DST sponsor companies, custom DSTs only available to Kay clients and a DST secondary market. Kay Properties team members collectively have over 400 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments.

Diversification does not guarantee profits or protect against losses. All real estate investments provide no guarantees for cash flow, distributions or appreciation as well as could result in a full loss of invested principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This case study may not be representative of the outcome of past or future offerings. Please speak with your attorney and CPA before considering an investment.

There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential distributions, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals, and risk tolerances. Securities offered through FNEX Capital, member FINRASIPC.