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The Experience You Need

Many of our clients own real estate investment property as part of their overall financial portfolios and we have helped many of these clients use the 1031 exchange to sell a property and reinvest in another like-kind property. That tax advantages of 1031 exchanges are well-known and that is why this approach to real estate investing remains so popular.

As with any investment, however, there are risks that should be considered and the rules surrounding a 1031 exchange can be confusing. That is a primary reason why our team at WhiteStone Wealth Management Services has developed such expertise with this investment structure and made it a core part of our service offering.

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The Delaware Statutory Trust

One specific investment structure in the 1031 exchange industry we are particularly knowledgeable about is the Delaware Statutory Trust, or DST. While it qualifies under 1031 exchange guidelines as a like-kind property investment and provides the same tax-deferral benefits, the DST offers several additional benefits that investors are taking advantage of today. Just to name a few:

  • Passive investment (No property management headaches)
  • Fractional ownership in institutional quality real estate
  • Greater diversification. DSTs can own multiple properties in different locations, with different asset types
  • Estate planning benefits enabling heirs to inherit equal fractional shares, helping to avoid family disputes
  • Minimum investments often as low as $25,000
  • Ability to close on an investment in just a few days, helping 1031 investors to meet their 45-day timeline
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DST Limitations

Of course, as with any investment, there are limitations to consider, and a few for the DST are:

  • Trustees make all property decisions. No voting rights by investors.
  • Lack of liquidity. No defined schedule for the time of sale.
  • Only available to accredited investors. Must meet certain income of net worth requirements.
  • Cannot raise additional capital once the offering is closed.

Helping clients successfully complete these types of real estate transactions goes hand in hand with helping successfully manage their wealth.

Let’s Talk About You. Schedule Your Free Consultation Today.