Not Your Typical 1031 Exchange

Want to simplify your portfolio?

Are you at an age where you want to simplify your real estate portfolio? Tired of property management issues?

If you hold real property as an investment, you’ve likely heard of a 1031 exchange. A 1031 exchange is a great way to defer taxes. A great way to trade up. To build equity. Wealth. Of course, if you exchange property for property, you still have property! I love real estate, but there comes a time when the responsibilities of management, become too much. Especially if you are a senior like me and looking for ways to simplify your life.

Have you considered a Delaware Statutory Trust?

They are ideal for investors seeking to defer their capital gains taxes through the use of a 1031 tax-deferred exchange. The DST structure allows a smaller investor to own a fractional interest in large, professionally managed property. Each investor is an individual owner within a Trust. Each owner receives their percentage share of the cash flow income, tax benefits, and appreciation. DSTs provide the investor with the potential for annual appreciation and depreciation. They provide tax shelter, just like real estate.

Most have minimum investments as low as $100,000. This allows investors the benefit of diversification into several properties. A DST may also be the perfect vehicle for investing any equity you have remaining after a traditional 1031. Exchange a higher-priced property for a lower-priced property and invest the remaining equity into a DST.

The cool thing about DSTs is that an investor gets the benefit of real estate investment without the management responsibility. You can let professional investment asset managers do the management, while you enjoy the benefits.

DSTs aren’t for everyone, but if you want a little less headache, a lot more freedom,  you’d be wise to check them out. Oh, and be sure to check with a qualified tax advisor while you’re at it!