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Passive Ownership Investment Real Estate with a Delaware Statutory Trust (DST)

Do you own investment real estate? Tired of Property Management and tenant issues? Is your hair grey? Are you interested in continuing to own real estate structured for tax-sheltered income, potential appreciation –all with out property management?

Consider a tax-deferred 1031 exchange into a diversified portfolio of commercial Delaware Statutory Trust(DST) properties which are structured by real estate firms with significant experience and strong operational resumes.

DST’s have relatively low minimum investments of $100k and utilizing the 1031 exchange replacement property rules, owners can exchange the proceeds from a single property into multiple DSTs –creating a portfolio of diverse properties that is composed of different fund sponsors, property types and provides geographical diversification –thus serving to help reduce the risk inherent in concentrated assets.

Delaware Statutory Trusts enable owners to reap all the potential benefits we know and enjoy from real estate, which may include:

  • Monthly cash flow/income potential
  • Continued tax deferral through future 1031 exchanges
  • Property Diversification by asset class and location
  • Potential for property appreciation
  • Sheltering income from taxes through depreciation
  • Hedging against inflation
  • Maintaining the opportunity for appreciation
  • Providing a full step-up in tax basis upon the death of an owner

Furthermore, DSTs have the potential to be an effective estat eplanning tool as they require no active management and can be transferred to beneficiaries thus eliminating potential inheritance concerns and discounting valuations in estate planning.

DST’s are a popular exchange solution which can be used to address the changing of one’s goals & family objectives–and desire to own interest in passive ownership interest in professionally managed commercial properties. For additional information, including a phone call or zoom meeting, contact us at (858) 597-1980.