DST Properties 2019-12-12T07:24:10+00:00

DST ( Delaware Statutory Trust)

DST investment offers:

  • Flexible and Beneficial Advantages for 1031 Exchange Investors
  • Rightful ownership in institutional-grade properties
  • Relief from property management
  • Regular flow of cash, Lowers your closing risk

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What is a DST (Delaware Statutory Trust) ?

DST investment provides tax-deferment benefit with no burden of property management

A Delaware Statutory Trust or a DST is offered mainly as real estate securities to 1031 Exchange investors. DST investments are passive real estate investments that allow investors to acquire fractional ownership in real estate properties without the burden of property management.  The structure for a DST investment was first created in Delaware in 1947. However, it isn’t mandatory for a DST to be located within the State of Delaware. DSTs are generally responsible for purchasing, managing, administering, and selling real estate properties. Investors within a DST enjoy their pro rata share of income, appreciations, and tax benefits. 1031 DST Property offers similar benefits and risks as any other real estate investment.

Positives in a DST investment

  • Low investment – A DST investment may start from as low as $100K.
  • Large structure – There is no limitation on the number of investors a DST can possess. DSTs can have up to 499 investors or fewer. This opens the DST arena for small investors, who can acquire ownership in institutional-grade properties by making the least investment.
  • Relief from property management – 1031 DST property come with pre-arranged property managers and investors don’t need to bear the burden of property management.

Downside of a DST investment

  • No title to property – Investors within a DST don’t receive property title.
  • Can’t form single-member LLCs – DST investors aren’t allowed to form single-member LLCs.
  • No voting rights – DST investors don’t have voting rights over the operation of properties held by the DST.

For consultation and assistance regarding DST 1031 exchange property, you can call – 888-993-2835 or email us at info@1031Xchange.com

How you can complete a 1031 Exchange with a DST investment?

DST 1 Decides to sell Investment Property, list it for sell and go under contract 2 Enter into a 1031 Exchangeagreement with Qualified Intermediary. Make sure you meet the requirements of the Federal Tax Laws, especially the one pertaining to the proceeds. 3 Closes on the sale ofrelinquished property and transfer proceeds from Sale to QI 4 Identify DST investment optionswithin 45 days 5 Buy the same as your 1031Exchange replacement propertywithin 180 days 6 Submit form 8824 to the IRS at the time of filing taxes along with the other required documents
  • Decides to sell Investment Property, list it for sell and go under contract.

  • Enter into a 1031 Exchange agreement with Qualified Intermediary. Make sure you meet the requirements of the Federal Tax Laws, especially the one pertaining to the proceeds.

  • Closes on the sale of relinquished property and transfer proceeds from Sale to QI.

  • Identify DST investment options within 45 days.

  • Buy the same as your 1031Exchange replacement property within 180 days.

  • Submit form 8824 to the IRS at the time of filing taxes along with the other required documents.

How we can help ?

  • We provide complete assistance for your 1031 Exchange.
  • Connect you with the 1031 Exchange Expert with best 1031 DST Property options and to
    stay with you throughout the transaction.
  • Help you with fund transfer/documentation etc.
  • We work hand in hand with your attorney, accountant or closing agent for ensuring that the transaction runs smoothly.
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Top ten benefits of a DST investment

Risks Involved in DST Investments

  • No contribution can be made upon closing – A DST can’t accept any contribution from its new or current beneficiaries once the offering is closed.
  • No renegotiation on existing loans – The trustee can’t renegotiate the terms of the existing loans. Neither can it borrow new funds from any lender.
  • Limitation on capital investment – Any cash held during distribution dates can only be invested for paying short-term debts.
  • Can’t reinvest real estate proceeds – The trustee isn’t allowed to reinvest the proceeds obtained from the sale of its real estate.
  • Limitation on capital expenditure – The trustee is allowed to make limited capital expenditures on the property pertaining to (a) normal repair and maintenance, (b) minor non-structural capital improvements, and (c) those required by the law.
  • No extra reserves – It’s mandatory that all cash, other than necessary reserves, is distributed among the beneficiaries on a current basis.
  • No new leases – The trustee can’t enter into new leases, neither can it renegotiate the current leases.

“Our tax-deferred 1031 exchange programs can save millions in taxes, increase investor equity, and compound annual cash flow distributions and returns”