July 15th 1031 Exchange Deadline Approaching! How Fast Can I Close on DSTs?

By: Orrin Barrow, Vice President – Kay Properties and Investments, LLC

Many investors were granted an extension on their 1031 exchanges so that they would not have to identify their replacement property until July 15th, 2020. However, we are quickly approaching this deadline for investors to properly identify and select their replacement property. Given the very unsure nature of the economy and how Covid-19 will continue to affect us, many investors have been reaching out to Kay Properties to look for Delaware Statutory Trust properties for sale that can either serve as a backup strategy or as a property that they can identify and can quickly close on considering the July 15th deadline. 

Many Delaware Statutory Trust properties for sale are actually purchased outright by the DST sponsor company before they are reviewed by our in-house due diligence analysts and uploaded to the kpi1031.com platform. This results in potentially reduced closing risk for investors while also giving them the ability to close on their replacement property in as little as 48-72 hours after reading the Private Placement Memorandum (PPM), speaking with their CPA and attorney as well as discussing the potential risk factors of making an investment with a Kay Properties team member.

There are also many DST properties for sale on the kpi1031.com platform that will potentially have equity remaining for roughly 60-120 days. This allows for investors to potentially select a DST 1031 property to serve as a backup identification to their primary selections. Another drawback of Covid-19 is that many clients are hindered or unable to go and see properties due to statewide ordinances or airport travel restrictions. This makes it more difficult for investors to perform due diligence as they normally would before selecting properties for their 1031 identification. Having the Delaware Statutory Trust and the additional due diligence that Kay Properties has done as a backup strategy can possibly prevent investors from having a failed exchange. If an investors primary property has issues that the investor just isn’t comfortable with, they could potentially easily close into their selected DST 1031 back up.

In conclusion, DST properties are often quickly closed on in the event that a client is looking to complete their 1031 exchange before the 45th day identification deadline and also readily available to serve as backup solutions for a client who is brushing up against their timeline and needs a potential back up strategy. Be sure to speak to your Kay Properties representative to learn more about DST 1031 properties for sale and solutions as well as visit www.kpi1031.com.

About Kay Properties and www.kpi1031.com

Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com 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.