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 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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