High net-worth investor decides to relinquish a portion of his rental property portfolio in a succession of sales before entering multiple DST 1031 exchanges to help achieve diversification, non-active management, and potential monthly income
(Torrance, CA) Kay Properties & Investments successfully helped a high-net-worth client complete 15 Delaware Statutory Trust (DST) investments following the sale of five multifamily properties within a short period of time.
“This particular client leveraged the full potential of Kay Properties unique real estate platform that combines extensive client education, a robust menu of diversified DST investment options from multiple Delaware Statutory Trust sponsor companies, and deep market contacts across the country. We spent more than a year working closely with him until he was comfortable with us and the DST 1031 exchange investment model. After conducting literally years of research on the subject, he decided that DST investments provide an investment strategy that fit his own goals and objectives better than active ownership/management of rental properties as well as that Kay Properties was the right team and platform to help him invest in DST 1031 properties,” said Dwight Kay, Founder and CEO of Kay Properties.
Kay also explained that this type of transaction illustrates the growing popularity of DST 1031 exchanges among real estate investors.
“As DST 1031 exchange experts, Kay Properties & Investment representatives speak with hundreds of accredited investors each week who want to know more about DST investment opportunities, ” said Kay.
After completing his first DST 1031 exchange several years ago, the client recognized the level of expertise Kay Properties provided throughout the entire exchange process, and how readily available the entire Kay Properties team was to answer questions or provide advice.
“He first started to learn about DST investments through extensive conversations with the Kay Properties team and with the resources available on the www.kpi1031.com platform. Then, he started to conduct his own research and really got comfortable with how DST 1031 exchanges work. Over the months he asked many questions, and we were always there for him with answers and guidance. Plus, he really got to the point several years ago where he didn’t want to be a landlord anymore. He was proud of himself for having built such a portfolio during his younger years, but he just reached a point in his life where he wanted to start selling some of his investment properties,” said Jason Salmon, Senior Vice President and Managing Director of Real Estate Analytics with Kay Properties & Investments.
Because the investor had already completed at least one DST 1031 exchange and was comfortable with the investment vehicle, Salmon explained he now wanted to slowly liquidate his real estate portfolio. The investor, along with his CPA and attorneys worked closely with Salmon and Kay Properties team of DST experts to create a very detailed plan that included anticipated closing times on the relinquished properties, timelines for finding and vetting replacement properties that fit within the investors very specific parameters and creating a workflow that coordinated all the necessary paperwork and signatures so that everything was organized and every closing went smoothly.
“Some sales overlapped with each other, and so it became a cadence – one after the other, after the other, after the other, after the other.We are in constant contact and we really immerse ourselves into finding just the right DST property or properties that fit perfectly into his 1031 investment model,” said Salmon.
The investor, Salmon explained, invested in industrial distribution, net lease, self-storage, medical, and multi-family DST investments that were for sale across multiple geographic regions.
“The gentleman is very, very comfortable with DSTs at this point, and is very pleased with the diversification, passive ownership, and potential monthly income stream that he has been able to accomplish. I believe his intention is to not buy any more rental real estate, and continue to move into DST investments on a systematic basis,” said Salmon.