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Delaware Statutory Trust Advantages

Delaware statutory trusts offer a number of potential advantages to investors. When used correctly, it can be a powerful tool for building and preserving wealth. Let’s discuss and list the most popular advantages for investors using DSTs for their 1031 exchange.

  1. Free yourself from the three Ts of active management: Since they offer the potential for hassle-free income, numerous investors who are grown tired of managing Toilets, Tenants, and Trust are attracted to Delaware Statutory Trusts. Growing consideration of DSTs is particularly evident among investors transitioning from active real estate management by means of a 1031 tax-deferred exchange. Being a landlord can be a tiring, time consuming occupation which many property owners would prefer not to continue as they approach retirement. Getting the money out of a property held over a lifetime will, by and large, result in a significant capital gains tax hit that will erase up to one-third of the wealth that has been amassed unless steps are taken to defer and avoid taxes that may be due on sale. This is where Delaware Statutory Trust helps investors who utilize a 1031 exchange to reinvest in professionally managed institutional grade assets that may provide stable income with no significant management overhead.
  2. Access to institutional grade assets: Delaware Statutory Trusts offer investors opportunities to invest in institutional grade assets including apartments, triple net leases (NNN) properties, storage, and retail that have in place professional property management. DST assets typically range in value from $10M up to $100M.
  3. Potential for non-recourse debt vs recourse debt: Since the DST Trustee is the sole borrower, investors have no loan liability and do not need to complete loan applications to qualify for the investment. Most investors who purchase traditional wholly owned investment properties are stuck with full or partial recourse loans from their lenders and therefore increasing their ownership risks.
  4. Potential for diversification into multiple properties:Since up to several hundred investors may invest in each DST, the minimum investments can be as low as $25K thereby allowing investors to diversify their investments into multiple properties. This not only allows potential investors easier access to Delaware Statutory Trust but allows investors to spread risk across multiple assets instead of containing it in a single property.

Please contact us at 866 398-1031 or via email at info@FirstGuardianGroup.com to learn more about Delaware Statutory Trust

Paul Getty

Paul M. Getty is one of the most experienced 1031 exchange specialists in the United States, with a career in real estate that spans over 35 years and more than $5 billion in commercial transactions across every major asset class. His work covers single-family rentals, apartments, retail, office, multifamily, and student and senior housing, giving him a practical understanding of how different property types perform across market cycles and how investors can move between them using tax-deferred exchange strategies. As President and CEO of FGG1031 | First Guardian Group, Paul advises investors through the full 1031 exchange process, from identifying qualifying replacement properties to structuring acquisitions through Delaware Statutory Trusts (DSTs) and wholly owned real estate. His guidance covers both the compliance requirements of a valid exchange and the investment decisions that determine long-term portfolio outcomes – a combination that is difficult to find in a single advisor. Paul holds a California and Texas real estate broker license and carries Series 22, 62, 63, and 82 securities licenses as a registered representative with Emerson Equity LLC, member FINRA /SIPC. He has represented buyers and sellers across complex commercial transactions, sourced and structured debt and equity, and worked alongside nationally recognized firms including Marcus Millichap, CBRE, JP Morgan, and Morgan Stanley. Before founding FGG1031, he co-founded Venture Navigation, a boutique investment banking firm whose M&A and IPO activity generated over $700 million in investor returns. Paul holds an MBA in Finance from the University of Michigan and a bachelor’s degree in chemistry from Wayne State University. He has also completed coursework in artificial intelligence at Stanford University. He is the author of four books on real estate investing and tax deferral strategy, including Tax Deferral Strategies Utilizing the Delaware Statutory Trust (DST) and Real Estate Investing in the New Era, both available on Amazon. A frequent speaker on 1031 exchanges, DST investing, and real estate tax strategy, Paul Getty is a recognized voice for investors and advisors seeking guidance on capital preservation through tax-deferred real estate investment.

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