Delaware Statutory Trust (DST)

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.

• You are required to reinvest all proceeds earned from the sale of the property if you want to defer the entire gain.
• You are required to only invest in “like-kind” real estate assets.
• You must work with a qualified intermediary to facilitate the exchange for you.
• You must not take possession of funds at closing to have this qualify as a “like-kind” exchange.  
• You have 45 days to identify potential replacement properties.
• You have 180 days from the sale date of the original property to reinvest your funds.

• Tax deferral and potential tax forgiveness to heirs (step up in basis on death).
• Portfolio diversification - A simple and efficient investment process with access for more investors.
• DSTs can help with “boot” - Exchanging properties for the exact dollar amount of the relinquished property can be difficult. DSTs accept fractional amounts and can help utilize the remaining proceeds leftover from a 1031 exchange that was not able to be allocated to direct real estate.
• Investors have no personal liability. Annual LLC fees are also eliminated for investors.
• Investors do not provide tax returns to lenders or sign loan documents – lender does not underwrite the investors; the sponsor signs carve-out.
• Investors have protection against any uncooperative investors.
• Lower investment minimums per participant.
• The sponsor is in charge of managing the property and makes decisions when necessary.
• The DST owns 100% of the real estate.
• Access to higher quality real estate.
• Liability protection.
• Debt replacement required by Section 1031.
• Ability to shelter distributions through the use of depreciation deductions plus bonus depreciation and cost segregation.

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.