1031 Exchange Investors

If the investor or the taxpayer is searching for the best 1031 option and wants to reinvest the property, you can connect with the expert at 1031property.com. 1031 DST is not a new concept, but the current tax law has made this investment a booming option that can be worth looking for the 1031 exchange investors.

Delaware Statutory Trust (DST) is the entity set up for business purposes. It is established under the Delaware Statutory Trust Act, 1988, and recognized by Delaware state law.

DST’s are formed as a private governing body under which the property is managed, held, administered, and invested. Under 1031 DST, trust is formed by combining many investment properties, and in this, the investor buys the shares of the trust according to his needs or requirements. The properties which are combined can be situated in different parts of the USA. 

The reason for which the investors prefer DST over individual real estate investments is that DST allows the investor to have a regular income flow even for small investments. This is the main reason why the DSTs are preferred more over individual real estate investments. DSTs have created a boom in the investment industry as this leads to leaving their heirs with assets, not with the liabilities

Advantages of choosing DST’s:

  1. DST is a worthy investment to go if you are planning for income-generating investments for your heirs long after if you are gone. Therefore we can say DSTs create a valuable inheritance for your heirs.
  2. It provides opportunities for diversification for your investment. Suppose you don’t want to invest your full amount in a single property. In that case, you can split your investment among multiple DST properties, allowing the investor to diversify the real estate portfolio. 
  3. During the 1031 exchange identification period, DST property can be used as one of the three candidate properties. Suppose if you are not able to procure the first two choices of identified candidate property to meet the deadline, then DST property remains as an option that can be closed very quickly to meet the exchange deadline. Therefore Delaware Statutory Trust also works as the backup plan for the investor or the taxpayer.

Now you have a better understanding of Delaware Statutory Trusts, and now you have to decide whether it’s the best type of investment for you or not. The current tax laws have made DSTs a preferred investment vehicle for passive 1031 exchange investors. Multiple owners are involved in this and are controlled by the master tenants. DSTs provide various potential advantages to investors. These are an effective tool for building and preserving wealth.

For consultation and assistance regarding 1031 exchange DST you can call – 888-395-0046 or email us at info@1031property.com

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