Investor Fundamentals

If you’ve been thinking about engaging in a 1031 exchange, a Delaware Statutory Trust (DST) can be an excellent option. However, before getting involved, it’s important to understand the ins and outs of how they work. In particular, “7 Deadly Sins” must be avoided. Otherwise, the DST will fail to meet the “like-kind” requirements established by the IRS.

Even before Covid-19-related hurdles, normal tenant troubles, property maintenance, leasing agents, and property managers make for a headache and a hassle. Direct real estate ownership is not a passive endeavor, and it is not for everyone.

While transitioning from a liquidating DST to a replacement DST is a widely popular approach for investors, this type of transaction still requires the steady hand of an experienced team of professionals to help ensure your reinvestment goes smoothly.

Real estate is supposed to be a great inflation hedge, and it can be, so long as cash flow from rentals can increase fast enough to keep up with cap rate compression.