“There is No Cash Flow in Raw Land” – Family with long time land holding 1031 exchanges $2.5M of equity into potentially income producing DSTs

Please view press release here. 

Kay Properties investors, a family who inherited land on the outskirts of a city, tried for years to sell the land all the while learning about 1031 DST offerings as a possible option for their investment.  When the property finally sold, the family wanted to lower their risk potential and so invested the entire $2.5M into all cash, debt free DST properties.  Betty Friant, Senior Vice President, explained, “The family had tried renting out a few of the small houses on the land in the past with very mixed results.  They were tired of the active management of the tenants, toilets, and trash and so let the homes remain vacant instead of dealing with the hassles of management.  The family ultimately invested in 9 different DST properties for sale which represented multiple asset classes which included Medical, Industrial, Retail, Net Lease Pharmacy, Self-Storage and even a debt free Multifamily DST in various regions of the country and with various DST sponsor companies and DST asset managers.”   

Friant continued, “The clients were able to move from a negative cash flow scenario of paying the annual taxes and upkeep on land and the rundown buildings, to a lifestyle change with potential monthly income and no active management while avoiding the significant tax consequences that would have happened if they hadn’t done a 1031 Exchange.  The Delaware Statutory Trust DSTs were a great fit for this particular family to potentially accomplish their goals and objectives.” 

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 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 115 years of real estate experience, are licensed in all 50 states, and have participated in over 15 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. If you are not the intended recipient of this message, any use, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please immediately notify the sender and permanently delete all copies that you may have. Securities offered through Growth Capital Services, member FINRASIPC, Office of Supervisory Jurisdiction located at 582 Market Street, Suite 300, San Francisco, CA 94104.

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