A DST (Delaware Statutory Trust) is an entity that is used to defer capital gains tax from the sale of rental property into a portfolio of real estate. A 1031 Exchange Delaware Statutory Trust is similar to how a TIC or tenant in common and can invest a fractional interest into real estate; however, unlike a TIC, a DST 1031 property will qualify as "like-kind" exchange replacement property for a 1031 exchange. This qualification as "like-kind" property is according to the Internal Revenue Code Section 2004-86. A 1031 DST Exchange entity can be used to hold title to a wide variety of properties; however, a typical DST properties are triple net (NNN) leased retail or office property or a multifamily apartment building. A triple net leased property is a property in which the tenant is usually responsible for property taxes, maintenance costs, and insurance. I hope this is a quick explanation of what is a 1031 DST Exchange?

1031 DST Exchange Properties?

The types of DST properties that are available for investors include retail centers, multifamily apartment buildings, medical offices, or self-storage buildings. The DST properties have long term lease contracts with the tenants. With our 1031 DST Exchange portfolios, there are multiple properties available to qualified accredited clients, with a very low direct investment of $25,000.

1031 DST exchange properties also have different financing proportions to satisfy an investor’s exchange terms of taking on "equal or greater debt," as defined by the IRC (Internal Revenue Code) Section 1031. However, some 1031 DST exchange properties are offered all-cash, debt-free to reduce the risk of using financing when buying properties. The funding used on 1031 DST properties is typically non-recourse to the investor. Non-recourse financing is typically described as financing whereby the lender’s only solution in the case of a default is the subject property itself. The lender is not able to proceed with the investor’s other assets beyond the subject property. So, investors could suffer their entire principal amount invested in the property in the case of a major tenant insolvency, market-wide depression, or recession. However, their other assets would be preserved from a lender. We hope this will help you learn What a 1031 exchange DST is?

If you are interested in learning more about what is a 1031 DST exchange - you can fill the below form, and one of our 1031 exchange representatives will contact you soon, or you can call us at 8888766005 or email us at info@1031sponsors.com to learn more about DST properties.

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