“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 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.