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Own Investment Real Estate?

Tired of Property Management headaches? Concerned about Rent Controls & Proposed Property Tax Increase?

Have you heard of the potential benefits of a 1031-Tax Deferred Exchange into a Passive Ownership of commercial properties with a Delaware Statutory Trust (DST)? DSTs enable you to diversify your real estate investment by asset type, size and even geography.

A natural concern of investment property owners today, who are considering a property sale and new purchase using a 1031 Exchange, is the income-producing strength of the replacement property. The economic impacts of the coronavirus have wreaked havoc on the commercial real estate industry, rendering once strong property types vulnerable.

That’s one reason suitable investors consider using the Delaware Statutory Trust (DST) structure for their exchange. Because DSTs have the latitude to purchase properties of different asset types, different sizes and in different locations, one would have access to investment choices that may have the potential to perform better than others as we work our way through and out of this current recession. Those choices may also offer the potential for better income or capital growth than what is currently available with a traditional 1031 Exchange. Perhaps of most importance, the ability to broadly diversify may help minimize your investment risk.

So, while one may currently own a residential rental property and were thinking of exchanging into a similar property, DST sponsors offer you the ability to have fractional ownership in many different property types including:

  • Multi-Family Apartment Buildings
  • Single-Tenant Net Lease Retail Properties
  • Medical Office Buildings
  • Self-Storage Properties
  • Student Housing Properties
  • Industrial Distribution Centers
  • Commercial Office Buildings
  • Hospitality Properties

Since DST investors own a ‘fractional interest’ in a property, one may be able to invest in a much larger, institutional-quality property than they would with a 1031 Exchange. And finally, DST sponsors offer properties throughout the United States, providing options to own in areas that may have stronger economic fundamentals than others at this moment in time.

For more information, please feel free to contact our team at Financial Designs, Ltd by calling (858) 597-1980. You can also schedule a phone call, one-on-one meeting or a Zoom conference with us at your convenience. Also join us at our Strategies to Dispose of Appreciated Real Estate webinars from the convenience of your home or office.