Investors who sold their buildings have turned to all-cash/debt-free DSTs to provide themselves zero risk of lender foreclosure while also providing greater resilience to hold throughout any potential market downturns, world events, or recessions. If there’s one thing we’ve learned during the COVID-19 pandemic, black swan events can drastically alter economic patterns. Investors who invested in single-tenant net-lease buildings occupied by iconic brands such as Brooks Brothers, Guitar Center, and Pier 1 faced a harsh reality after they went out of business and were unable to pay rent. All-cash/debt-free DSTs can have a better cash flow potential. With no monthly debt service to a lender, the all-cash/debt-free DST potentially can pay larger monthly distributions to investors. REASON 2
All-cash/debt-free DSTs can help protect entrepreneurs and investors from the financial catastrophe of a complete loss of their principal due to a lender foreclosure. While it is not common, investment property foreclosure can and does occur, causing investors to lose their entire investment. However, with all-cash/debt-free DST investment, investors never have to worry about a lender foreclosure because there is no monthly debt service attached to the investments. in the stock/bond markets turn to all-cash/ debt-free Delaware Statutory Trust properties as a strategy to diversify away from stocks and bonds. All-cash/debt-free DSTs provide investors the ability to diversify a portion of their 1031 Exchange dollars into unlevered assets to lower potential risk. Many entrepreneurs who have invested heavily REASON 4
Times are indeed turbulent but considering all-cash/debt-free DST investments might be a good way to reduce investment risk and avoid lender foreclosure. Click Here to Download Your Free Listings of DST Properties.
STEVE HASKELL Vice President Kay Properties and Investments (855) 899-4597
Steve Haskell works with 1031 exchange and direct investment clients throughout the country and is based out of Kay Properties San Diego office. Steve comes to Kay Properties and Investments after serving for seven years as an officer in the United States Air Force in the special operations community where he led hundreds of military and civilian personnel. Prior to his military service, Steve worked in sales and marketing for multiple businesses, which included providing energy management solutions to institutional multifamily apartment owners. Steve holds a Masters degree from the American Military University and a Bachelors in Accounting from Point Loma Nazarene University where he graduated as International Development Student of The Year for his work providing business education to entrepreneurs in impoverished areas in Mexico, Nicaragua, and San Diego.
Disclosure: Securities offered through FNEX Capital, member FINRA, SIPC. Potential returns/appreciation not guaranteed and loss of principal is possible. Speak with your CPA/attorney for tax/legal advice.
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