RENT Magazine Q1 '22


Potential diversification: Instead of having all your eggs in one basket, DSTs allow investors to diversify both geographically and across multiple asset classes. Non-recourse loans: DST investors are not required to execute any loan guarantees or indemnities given their purely passive relationship to the DST and its real estate. Liability protection: The DST “wrapper” shields the exchanger/investor from any liabilities with respect to the property. Helps preserve wealth across multiple generations: Because the 1031 exchange defers all the taxes associated with the sale of real estate, this wealth can continue to grow over years. In addition, upon the death of the owner, the heir of the estate receives a stepped-up basis eliminating the accumulated capital gains taxes.

Inventory: By working with a DST 1031 exchange expert advisory firm like Kay Properties, the investor is assured of multiple DST properties for their 1031 exchange. Low minimum investment: DSTs typically have a minimum investment of $100,000 for 1031 exchangers and $50,000 for cash investors. Passive management: The DST structure takes management responsibility for the properties out of the hands of investors and places it into the hands of a professional manager. The passive nature of the real estate investment structure allows investors more quality time to travel or to spend time with their friends and family. Cash distribution potential: The rental income generated from the DST properties is potentially distributed on a monthly basis directly to the investor’s bank account via ACH.

Disclaimer: *Diversification does not guarantee profits or protect against losses. *NOTE: Past performance does not guarantee future results and DST investments may result in a complete loss of investor principal. This is an example of the experience of one of our clients and may not be representative of the experience of other clients. These clients were not compensated for their testimonials. Please speak with your attorney and CPA before considering an investment. Diversification does not guarantee profits or protect against losses. All real estate investments provide no guarantees for cash flow, distributions or appreciation as well as could result in a full loss of invested principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This case study may not be representative of the outcome of past or future offerings. Please speak with your attorney and CPA before considering an investment. All offerings discussed are Regulation D, Rule 506c offerings. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential distributions, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals, and risk tolerances. Securities offered through FNEX Capital member FINRA, SIPC.

JASON SALMON Senior Vice President Kay Properties

Jason Salmon is Senior Vice President Managing Director of Real Estate Analytics for Kay Properties & Investments New York City office where he applies his more than 20 years of commercial real estate and financial advisory experience in assisting thousands of property owners as they navigate their 1031 exchange transactions and direct acquisitions of securitized real estate investments. He is considered one of commercial real estate industry’s leading experts in providing high-net-worth clients DST 1031 exchange investment strategies, tax advantaged exit strategies and estate planning solutions.

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