A 1031 exchange has some challenges built in, and a key obstacle to exchange success can be identifying suitable replacement properties within 45 days and securing financing and closing on the purchase within 180 days. In a Delaware State Trust, investors are not direct owners of the real estate; they hold beneficial interests in the… Continue reading Avoiding Financing Obstacles Through a DST
On paper, your real estate investments have been a great success. You bought three rental houses 20 years ago for $150,000 each. They’re now fully depreciated, and you can net $450,000 on each. You’ve been a good—and sometimes great—landlord. So what’s not to love. The calls at 1 a.m. because the boiler shut down on… Continue reading Delaware State Trust for Landlords Who Are Tired of the Management Hassles
Albert Einstein said, “The only reason for time is so that everything doesn’t happen at once.” How often to you feel like you’re racing against the clock while multiple responsibilities happen all at once? The hours fly past while you’re hard at work. You put out fires, juggle a full plate of decisions, and in… Continue reading Banking Your Time With a DST
The Treasury Department governs 1031 exchanges, and they’ve made one thing very clear: These are not do-it-yourself real estate ventures. In fact, you won’t be able to use your parents, child, or sibling, or even your attorney, real estate agent, or CPA as a middle person in the exchange and still expect to defer capital… Continue reading What Is a Qualified Intermediary?
Do you have remainder equity from a real estate exchange? Are you looking to maximize its potential while saving yourself a hefty tax bill? A Delaware Statutory Trust can be the perfect vehicle for meeting your investment needs. Why DST? It’s a business entity, through Delaware state law, that allows investors to take a fractional… Continue reading Delaware State Trusts for Remainder Equity
How Safe Is My Investment? You’re aware of all the benefits of using a Delaware Statutory Trust as an investment vehicle for a 1031 exchange. You’re thrilled at the capital gains tax savings the investment will give you, and relieved that your property management responsibilities will be limited—a professional manager will deal with tenants and… Continue reading DST Q & A
Investors who start their 1031 exchange transactions on a high note can often find themselves plummeting when faced with unexpected challenges. A Cautionary Case Study Michael Englesworth had $2M in real estate equity to exchange. He identified a good property and was ready to nominate it. Excited to move forward, he believed the process would… Continue reading The DST Advantage
Historically, a statutory trust is created so that a property can be held by multiple parties, for rental purposes or sale, at their discretion. All income from the property prior to its sale, and all proceeds of its sale, are then held in trust for the beneficiaries. In 1988, the state of Delaware enacted the… Continue reading What Is a Delaware Statutory Trust (DST)?