Have you thought about a Delaware Statutory Trust (DST)? A DST could provide access to institutional quality assets with a potentially higher monthly income with long-term lease structured tenants.
Delaware Statutory Trust (DST) – A separate legal entity created as a trust under Delaware statutory law. A DST may be used in in a Section 1031 tax-deferred exchange private placement program if structured in accordance with the provisions of IRS Revenue Ruling 2004-86.
At DST 1031 CONNECT, we work with many real estate investors to help them find a suitable 1031 exchange property whether they are retiring, looking to diversify, or are tired of being a landlord. We consult with investors and their agents regarding their current real estate holdings to determine and calculate a true cap rate analysis on the property they are looking to relinquish. This helps the investor to compare their current net income to potentially that of a DST — to see if exchanging into a DST makes sense for their particular situation.
After evaluating each investor’s unique situation, we consult and devise a portfolio of DSTs utilizing our relationships with some of the largest DST sponsors in the business. Once we have determined the proper investment portfolio, DSTs can oftentimes be purchased within days of close of escrow on the relinquished property. A DST seeks to provide consistent monthly income, greater diversification, and access to institutional quality tenants in one portfolio – all without the landlord management responsibilities.