Finally, there’s a piece of great news for accredited investors. A new online platform has been launched by 1031xchange.com for investors seeking direct access to Section 1031 exchange investment opportunities. The company offers Section 1031 exchange facilities directly to investors using the Delaware statutory trust structure under SEC Rule 506(c).
Through 1031xchange.com’s online investment portal, accredited investors can invest in 506(c) DST offerings funded by the firm without any upfront load or commission paid by the investor. This puts the power of tax deferral and potential capital appreciation directly in the hands of accredited investors. It is an easy-to-use online portal that simplifies the Section 1031 exchange process, while simultaneously saving costs passed on to the investor.
Purpose of the online investment platform
1031xchange.com’s online investment portal allows accredited investors to browse the real estate investment sponsor’s available DST offerings, check and analyze suitable offering documents and invest. As soon as an investment is received and approved, investors obtain full control over their investment in an offering through the online portal. This also enables them to view additional DST offerings available from 1031xchange.com.
A Delaware statutory trust is a unique legal entity created under Delaware law that may be applied in a Section 1031 exchange. According to the IRS Revenue Ruling 2004-86, a beneficial interest in the DST is considered as an undivided fractional interest in the DST’s real estate for federal income tax purposes.
All the investors seeking tax deferral, passive ownership of quality real estate, and diversification in a real estate portfolio can benefit a great deal from the DST structure.
Watch this short video to learn 1031 exchange benefits: https://youtu.be/z8QlfpYCDp8
Things to consider before investing in a DST
Investors should never invest in DST’s if they do not have a backup investment. DSTs are long term investments due to the lack of liquidity in every DST investment. Investing in a Delaware Statutory Trust – DST property carries all the significant risks and possible benefits linked with real estate investing. There are additional DST specific risks. It doesn’t guarantee that DST net income will flow to an investor as initially predicted. There is no guarantee for appreciation in a DST property’s value, or that it won’t go down in value. DST investments are illiquid assets, and there isn’t an established secondary market yet.