- Deferral of Capital Gains Tax: Investing in a like-kind property permits owners to postpone their capital gains tax after selling a property. This is the primary reason why real estate investors use 1031 exchanges. DST’s packaged structure has captured the attention of industry because it allows investors to close business deals in 3-5 days which fits within the compulsory 45-day identification and 180-day closing deadline.
- Potentially Increased Cash Flow: Property owners calculate the cash return they receive from their properties when conducting a 1031 exchange. Our observations at Kay properties in 2017 revealed typical cash return to be between 5-8%. These benefits are leading in increased demands and catching the eyes of several real estate communities.
- Increased Diversification: Instead of placing all their eggs in one basket, investors are becoming cautions when investing their capital. There are several real estate owners who have placed large amounts of their equity into a single property. Diversifying real estate portfolio by selecting properties in various business and locations reduces the risk of investment loss which is why DST properties supply investors with the option to invest in several portions of different properties.
- Passive Ownership: Investing in a DST allows you to transfer everyday management tasks to the property’s tenant. This allows the owners to redirect this time to focus on their life, while still enjoying the benefits of investment.
To learn more about Delaware Statutory Trust options and to receive a free list of currently available properties, please contact us at 866 398-1031 or email us at info@FirstGuardianGroup.com .