One of the most important questions all real estate investors should ask themselves is “What is my long-term strategy?” In the case of Delaware Statutory Trust (DST) investors, exit strategies come into play once the investment period has concluded, or gone “Full Cycle.” WHY YOU SHOULD CONSIDER INCLUDING A 721 EXCHANGE IN YOUR DST 1031 EXIT STRATEGY OPTIONS
When an investment goes full-cycle, investors need to evaluate the entire spectrum of options available to them, including:
WHAT IS FULL CYCLE? Full Cycle is a term used to describe a DST property that is purchased on behalf of investors and then after a period of time, is sold on behalf of investors.
• Selling the investment and triggering a significant tax event
• Entering into a 1031 Exchange (Delaware Statutory Trust or other eligible like-kind property, such as NNN property)
• 721 Exchange into Sponsor’s designated investment (REIT for example)
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