How you can unlock DST properties and boost your investments.
I'd like to discuss Delaware Statutory Trust (DST) properties and share some insights. Recently, I came across a book by Dwight K. titled “An Introduction to DST Properties for 1031 Exchange Investors.” So, what exactly is a DST?
A DST is essentially a trust, and it often becomes an appealing option for individuals who own multifamily properties and are approaching their retirement years. At this stage, they may seek an exit plan from the responsibilities of managing and maintaining properties as they transition into retirement. They aim to work less and find an end-game solution, and a DST can offer a path towards achieving that goal.
"DST properties are effectively managed by professional management companies."
So, how does it work? If you own multifamily properties, like a complex with 50 units, you can sell those units and utilize a 1031 tax-deferred exchange. Through this exchange, you can reinvest all the proceeds into one or more DST properties. These DST properties become your new investments, allowing you to defer capital gains taxes and enjoy a hassle-free ownership experience. DST properties are effectively managed by professional management companies, ensuring that you receive monthly income without the need for hands-on management.
Who can benefit from a DST? Individuals who have spent decades managing properties and now wish to transition into a phase of life with a reduced workload and a passive stream of income. They aim to achieve this without triggering substantial capital gains or liquidating their estate.
The advantages are clear: A DST allows you to transfer your property into trust ownership, defer taxes, and secure an ongoing income stream. If you have any questions or need more information about DST properties or any other real estate matters, please don't hesitate to call or email us. We're here to assist you.
