A Delaware Statutory Trust (DST) is a private real estate investment vehicle that allows investors to participate in a Section 1031 exchange and receive passive income as well as have the potential for appreciation from real estate ownership. Each investor owns an undivided interest in a group of properties and receives the income the properties produce. The investor is not responsible for the day to day management of these investments as the DST is managed by a professional team of real estate, investment, financial and legal experts.
A Delaware Statutory Trust (DST) is a distinct legal entity created as a trust under the statutory law of Delaware. In a DST, each owner is treated as owning an undivided interest in the underlying real estate for tax purposes. DST offerings comply with the requirements of IRS Revenue Ruling 2004-86. This means that each owner’s beneficial interest is treated as a direct interest in real estate for tax purposes.
Potential Benefits of a DST Structure
Asset Protection – Limits rights of creditors (creditors of a DST investor cannot attach trust assets).Liability Protection – DST investors of the trust have the same liability protections that Delaware law provides to stockholders of a Delaware corporation (generally, no personal liability).
Confidentiality – Provides privacy for the beneficial owners.Contractual Flexibility – Provides maximum contractual flexibility.
Disclosure: Diversification does not assure or guarantee better performance/profit and cannot eliminate the risk of investment losses in declining markets.
This website is neither an offer to sell nor a solicitation of an offer to buy any security which can be made only by a prospectus, or offering memorandum, which has been filed or registered with appropriate state and federal regulatory agencies and sold only by broker dealers and registered investment advisors authorized to do so.
This article is neither an offer to sell nor a solicitation of an offer to buy any security which can be made only by a prospectus, or offering memorandum, which has been filed or registered with appropriate state and federal regulatory agencies, and sold only by broker dealers and registered investment advisors authorized to do so.
Additionally, we cannot offer any of our open offerings unless we have a pre-existing relationship with a customer. Once we have obtained sufficient information to perform an evaluation of our new customers’ financial circumstances and sophistication in determining his or her status as an accredited investor, we would be able to discuss future offerings once they become available. Per our BDPs- 1031 Exchanges must not be made based on a general advertisement, seminars, group mailings or widespread public solicitation.