Kay Properties & Investments President, Chay Lapin, reviews the debt-free Texas Small Bay 85 DST for 1031 exchange and direct cash investors. 

The 68,400 SF asset was constructed in 2000 and is a 100% leased multi-tenant flex/industrial asset located in the coveted northwest submarket of San Antonio, Texas. 

One of the most important questions Delaware Statutory Trust real estate investors need to ask themselves is, “What is my long-term, exit strategy?” Most Delaware Statutory Trust (DST) investments are typically held for approximately 5- 10 years (although it could be shorter or longer). After that, the DST investment will typically go “Full-Cycle”, a term used to describe a DST property that is purchased on behalf of investors and then after a period of time is sold on behalf of investors. Once your DST investment goes full-cycle, investors need to evaluate what their next investment move should be. For example an investor could simply cash out and pay the capital gains and other taxes, enter another 1031 Exchange process, or complete a 721 Exchange UPREIT.

For real estate investors considering Delaware Statutory Trust (DST) investments—whether for a 1031 exchange or as a direct cash investment, it is important to define your investment strategy. For example, are you looking for an investment where you have the abilitiy to potentially generate greater monthly net operating income, or are you more interested in a steady income stream over a long period of time. These two investment strategies are often called the “Anchor and Buoy” investment theory.

DSTs are uniquely suited to help investors potentially achieve the benefits of both strategies, potentially offering the stability of an anchor with the growth opportunities of a buoy. 

In the realm of real estate investing, the 1031 exchange Delaware Statutory Trust can provide savvy real estate investors a unique opportunity to achieve passive management, the potential for regular monthly distributions, and a way to enter one of the most tax efficient real estate investment strategies available today. However, one the best ways to maximize this real estate investment strategy is by first understanding some of the benefits and risks of the Delaware Statutory Trust.

This recording will jump right into specific advantages and disadvantages associated with DST 1031 exchanges and provide a comprehensive look into this popular investment strategy.

Navigating the nuances of 1031 exchanges can be confusing for real estate investors, especially when it comes to understanding the concept of debt replacement. In today's podcast, Kay Properties' Senior Vice President's Matt McFarland and Carmine Galimi take a deep dive into why many investors love the Delaware Statutory Trust for replacing 1031 Exchange debt. 

This podcast features two actual investors who share how they turned to Kay Properties and Investments when they decided to exit the world of active management of their multifamily real estate portfolio and the the "Terrible Three T's: Tenants, Toilets, and Trash".

*These testimonials may not be representative of the experience of other clients. These clients were not compensated for their testimonials. Please speak with your attorney and CPA before considering an investment.

Real estate investors love Delaware Statutory Trusts for their 1031 exchanges because they can potentially provide investors the opportunity to defer capital gains taxes, eliminate active management responsibilities, and achieve the potential for regular monthly cash distributions. However, the first step to using the DST 1031 exchange real estate investment strategy is to first understand the pros and cons of the Delaware Statutory Trust.

Jason Salmon, Executive Vice President and Managing Director along with Orrin Barrow, Senior Vice President with Kay Properties jump directly into very specific advantages and disadvantages of Delaware Statutory Trusts and provide listeners a comprehensive view into this popular investment strategy.

Key Takeaways:

• Why are Delaware Statutory Trust 1031 Exchanges growing in popularity?
• What are some of the potential benefits of Delaware Statutory Trust 1031 Exchanges?
• What are some of the risks of Delaware Statutory Trust 1031 Exchanges to consider?
• What are Some Examples of Delaware Statutory Trust Properties?
• Frequently Asked Questions Regarding the Pros and Cons on Delaware Statutory Trust Properties

A Closer Look at Essential Net Lease 81 and San Antonio Multifamily 74 DSTs

Chay Lapin, President of Kay Properties & Investments describes two new debt-free Delaware Statutory Trusts offerings that include the Essential Net Lease 81 DST and the San Antonio Multifamily 74 DST.

One of the more complex strategies 1031 exchange investors should be aware of is the Zero Coupon DST 1031 Exchange.

Listen to Kay Properties Senior Vice President Alex Madden and Vice President Tim Emanuel describe how investors can use the Zero Coupon strategy for the Delaware Statutory Trust 1031 exchange.

It’s been called the greatest wealth transfer in history - It is estimated that $84 trillion in assets is set to change hands over the next 20 years. Not surprisingly, real estate accounts for the vast percentage of this wealth.

 The Delaware Statutory Trust can be a great tool for helping investors preserve their wealth and pass their assets to the next generation.

Kay Properties & Investments senior vice presidents Alex Madden and Matt McFarland explain exactly how Delaware Statutory Trusts can help investors with wealth preservation.