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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 Getty is a licensed real estate broker in the state of California and Texas and has been directly involved in commercial transactions totaling over $3 billion on assets throughout the United States. His experience spans all major asset classes including retail, office, multifamily, and student, and senior housing. Paul’s transaction experience includes buy and sell side representation, sourcing and structuring of debt and equity, workouts, and asset and property management. He has worked closely with nationally prominent real estate brokerage and investment organizations including Marcus Millichap, CB Richard Ellis, JP Morgan, and Morgan Stanley among others on the firm’s numerous transactions. Paul also maintains a broad network of active buyers and sellers of commercial real estate including lenders, institutions, family office managers, and high net worth individuals. Prior to founding First Guardian Group/FGG1031, Paul was a founder and CEO of Venture Navigation, a boutique investment banking firm specializing in structuring equity investments made by institutions and high net worth individuals. He possesses over 35 years of comprehensive worldwide business management experience in environments ranging from early phase start-ups to multi-billion-dollar corporations. His track record includes participation in IPOs and successful M&A activity that has resulted in investor returns of over $700M. Paul holds an MBA in Finance from the University of Michigan, graduating with honors, and a Bachelor’s Degree in Chemistry from Wayne State University. Paul Getty holds Series 22, 62, and 63 securities licenses and is a registered financial representative with LightPath Capital Inc, member FINRA /SIPC. Paul is a noted speaker, author, and actively lectures on investments, sales, and management related topics. He is author of The 12 Magic Slides, Regulation A+: How the JOBS Act Creates Opportunities for Entrepreneurs and Investors, and Tax Deferral Strategies Utilizing the Delaware Statutory Trust (DST), available on Amazon and other retail outlets.

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