How One Kay Properties Client Used the 1031 Exchange and DST Properties to Retire from Active Management

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

A Kay Properties and Investments investor had been managing her 9-unit apartment building for most of her life. After purchasing the building over 25+ years prior for $30,000 she sold the building for $1,300,000. Vice President Alex Madden explained: “Our Client was most interested in getting out of active management and deferring her substantial capital gains taxes. She was able to utilize a 1031 tax deferred exchange and diversify* into four 1031 DST properties, in four different asset classes, with four different 1031 DST sponsors and in four regions of the country.” 

Senior Vice President Chay Lapin went on to say “Through extensive discussions with the Client we were able to help her affect the lifestyle change she wanted, while avoiding the significant tax consequence that can by triggered through the sale of a property. Using the 1031 exchange and Delaware Statutory Trust our client was able to move from 25+ years of active management to 1031 DSTs and defer a significant tax liability while diversifying her equity into multiple DST offerings.”

*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 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.