1031 EXCHANGE STRATEGY #3: DELAWARE STATUTORY TRUST Strategy number three is what our firm, Kay Properties and Investments, specializes in, and that’s helping investors 1031 exchange into a Delaware Statutory Trust. A DST is an entity used to take title to real estate or hold title to real estate that’s been blessed by the IRS through revenue ruling 2004- 86 as a like-kind vehicle for 1031 exchange. Delaware Statutory Trust real estate assets can be multifamily apartments, triple net lease properties, self-storage, medical buildings or other real estate asset classes. Unlike the NNN where the landlord is still responsible for chasing down the tenant and getting them to honor the terms of their lease, with DST assets, there is a sponsor company that manages the investment for the investor. The sponsor company typically has an entire team of asset managers, attorneys, and accountants to manage the DST asset and manage the day-to- day headaches in terms of working with the tenants, working with the buildings, and all the items that investors used to have to do. Another reason why so many investors are using 1031 exchanges into Delaware Statutory Trust properties is that the DST structure allows investors to become truly diversified*.
WITH DST ASSETS, THERE IS A SPONSOR COMPANY THAT MANAGES THE INVESTMENT FOR THE INVESTOR.
THE DST STRUCTURE ALLOWS INVESTORS TO BECOME TRULY DIVERSIFIED.
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