Delaware Statutory Trusts, otherwise known as DSTs are a great landlord exit strategy. I speak with landlords all the time that want to get out of the landlord business, but don’t want to get crushed by taxes. The majority of the wealth in this country is in the hands of baby boomers and seniors, and a large portion of their wealth is sitting in their real estate portfolios. These demographic groups are either in retirement or approaching retirement, and on a mission to simplify their lives and generate sufficient passive income to preserve their current lifestyle. The DST is the perfect opportunity for so many of these investors, but 98% of real estate owners, CPAs, attorney’s, realtors, brokers, etc. have no idea the DST exists.
If you would like to sell your real estate investments, but you’re afraid of the potential tax consequences, then the DST is for you. You can 1031 exchange into a DST, defer paying tax upon the sale of your investment property, relieve yourself of management responsibilities (think tenants, trash, toilets, termites, time), and provide stable predictable passive income going forward. Down the line you can also 1031 exchange back into your own brick and mortar real estate too. Additionally, a DST is a great 1031 exchange backup plan in a tight real estate market. DSTs offer investments in all sorts of real estate across the county, including apartments, commercial, office, industrial, and more.
- Tax deferral
- Passive ownership
- Access to institutional quality real estate
- Low minimums (100k)
- Ability to diversify by asset type and geographic location
- Passive Income
- Monthly income
- Surety of close
- Pre-packaged non-recourse financing
- Quick closings (3-5 days)
If you would like more information about Delaware Statutory Trusts please reach out to me and be sure to sign up for our 1031 Exchange seminar.