Dwight Kay built Kay Properties and Investments with the vision of reducing concentration risk for his clients by providing investors a broad menu of DST opportunities available for their 1031 exchanges and cash investments. He wanted to ensure that his clients were not putting their hard-earned nest eggs in one single basket. Instead Dwight sought to avoid concentration risk by providing investors with the options of spreading their equity over many properties, geographic locations, tenants, DST sponsor companies, and DST offerings. Kay Properties & Investments now provides access to our clients over 25 different DST sponsors in the industry. These companies include Passco, Related Companies, JLL, ExchangeRight, BlueRock, Cantor Fitzgerald, Nexpoint, Go Store It, NB Private Capital and many others.
The diversification is critical to mitigating risk. However, it was not enough. Many of Dwight’s clients owned their properties they sold debt free. If they wanted to invest in DSTs, they were often left with no other option but to take on debt due to lack of available debt free options. Many of these clients remember with pride the day they cut that last check to the bank…they were finally debt free! However, many who wanted to invest in DSTs were then forced to take on unnecessary debt as the vast majority of DSTs have mortgages attached to them. Dwight decided to do something about that.
Dwight began building relationships with DST sponsors in the industry that were willing to develop debt free DST solutions for his clients. He advised the sponsors on what type of properties are most appropriate for his clients and how to structure the investment to best suit the requirements for his clientele. Over the years, they refined the process. Now Kay Properties offers a variety of debt free opportunities that are exclusively available to their clients that are dedicated to staying debt free.
Debt free DSTs are not for everyone. Some investors can take advantage of tax efficiencies and other potential benefits when assuming a mortgage. Other investors have no other option but to invest in DSTs with a loan due to IRS 1031 regulations of purchasing equal or greater value. However, experienced investors know that unnecessary debt can also be one of the greatest risks to a real estate investment. Kay Properties & Investments strives to provide their clients with as many suitable options as possible, and desires to equip them with the knowledge to select the best 1031 and real estate investment solution for the client and their families.