Kay Properties Podcast

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.

Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate and more.

The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments.

In this week's episode, Vice President Matt McFarland and Senior Vice President Betty Friant talk about the 7 rules around what qualifies as a DST. These rules are often referred to as the 7 deadly sins, and Betty explains why investors tend to get scared around these regulations. She also aims to shed some light on these sins and why you should not be frightened about them.

Key Takeaways:

[1:00] Risks and disclosures.

[4:00] About Kay Properties & Investments.

[4:50] Matt introduces Betty and today's topic.

[6:40] A bit of background on the 7 deadly sins, or rules, around DSTs.

[7:40] Once the DST is closed, you can't make any more contributions. Betty explains why this makes sense.

[10:40] DSTs are restricted from borrowing new funds.

[13:20] DST itself can only invest generated money within the DST. Betty explains what this looks like.

[15:00] You can't reinvest your money back into a deal.

[19:20] The sponsor is not allowed to investigate new tenant contracts.

[20:40] Capital expenditures can only really fall under three categories. Betty breaks this down.

[25:45] The DST is a wonderful gift from the IRS and it allows investors to defer their tax obligations in a smart way.

Resources

Website: https://www.kpi1031.com/

Call Kay Properties at 855-899-4597

Meet the Kay Properties Team: kpi1031.com/meet-our-team

About Kay Properties and www.kpi1031.com

Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible. Please speak with your CPA and attorney for tax and legal advice.

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.

Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate and more.

The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments

In this week's episode, Vice President Matt McFarland and Senior Vice President Betty Friant navigate and walk the listeners through their website. Today, they aim to get you familiarized with it as it is rich in resources and useful information.

Key Takeaways:

[1:00] Risks and disclosures.

[4:21] About Kay Properties & Investments.

[5:05] Matt introduces Betty and today's topic.

[6:35] Betty loves their website and wants to talk about it as a useful resource to learn more about DSTs and 1031 exchanges.

[8:10] She starts with introducing the main page and what you can find.

[9:25] She also mentions the informational topics you will find when you scroll down the main page.

[10:20] Betty points out where to find their custom DSTs and a tutorial on how Kay Properties can help you get started.

[12:45] Matt then talks about the marketplace button from the homepage and what it contains.

[15:40] Betty then moves on to the "about us" button which contains the subsections: Testimonials, Articles, Press, Meet the Team, and Podcast. She explains what each is about.

[18:00] Matt also adds a bit of their history at Kay Properties reading through the testimonials and reviews that Betty had shared about.

[19:05] Matt then moves to the resources section of the website and explains the subsections: DST Blog and Replacement Properties.

[20:40] Kay Properties resources allow the investors to see the bigger picture.

[21:50] Betty also shares how she uses the table of contents from the DST blog and explains how it's useful for her.

[24:25] She also talks about their Wednesday calls called the DST 101.

[25:50] Betty shares there is a lot of available information on their website to help people learn.

[26:20] Lastly, Matt shares about the register section on the website as the link for investors to start their contact with Kay Properties.

[27:30] Once investors have registered with them, they will then have access to the member's only site through the log-in page.

[28:25] The member's only site will contain the private place memorandums and can be downloaded from there.

[29:30] Matt shares each investment particulars will depend on the timing of their 1031 exchange.

Resources

Website: https://www.kpi1031.com/

Call Kay Properties at 855-899-4597

Meet the Kay Properties Team: kpi1031.com/meet-our-team

About Kay Properties and www.kpi1031.com

Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible. Please speak with your CPA and attorney for tax and legal advice.

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.

Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate and more.

The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments

In this week’s episode, Vice President Matt McFarland and Vice President Steve Haskell talk about the DST closing process and unpack what investors should be aware of at this stage of their exchange. They discuss in detail everything from the subscription process, to the 45-day deal window, and why it’s important to reserve potential deals.

Key Takeaways:

[1:00] Risks and disclosures.

[4:00] About Kay Properties & Investments.

[4:40] Matt introduces Steve and today’s topic.

[6:15] A lot of Steve’s clients are concerned about closing.

[7:10] Matt shares how a DST is usually packaged.

[9:20] Steve talks more about the subscription process and what they should be aware of.

[10:40] Steve shares when would be a good time to process administrative paperwork given the current extreme high demand of the market.

[12:45] What would be an ideal time to reserve potential deals?

[14:05] What does Kay Properties do when properties do not come out within a 45-day window?

[15:55] Matt talks about identifying the priority of approach of an investor and how important timing is regardless.

[18:05] Matt breaks down the typical step-by-step process for subscriptions.

[21:10] Steve shares that it would be beneficial to identify who the different players are and where the information is coming from and why it is important.

[22:55] What usually causes delays in closing a DST?

[23:50] Steve breaks down what happens when you sign the agreement and send it back to the qualifying intermediary and complete the 1031 exchange.

[26:15] Reservation is king right now but Steve shares what is more important to him.

Resources

Website: https://www.kpi1031.com/

Call Kay Properties at 855-899-4597

Meet the Kay Properties Team: kpi1031.com/meet-our-team

About Kay Properties and www.kpi1031.com 

Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible.  Please speak with your CPA and attorney for tax and legal advice.

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.

Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate and more.

The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments

In this week's episode, Vice President Matt McFarland and Senior Vice President Betty Friant talk about how to navigate a private placement memorandum or PPM. Betty offers smart ways investors can pick apart this document and get a better understanding of what they're signing up for.

Key Takeaways:

[1:00] Risks and disclosures.

[4:20] About Kay Properties & Investments.

[5:00] Matt introduces Betty and today's topic.

[6:00] Private placement memorandum, or PPM, is the official offering document that is compiled and put together for every DST.

[7:25] Betty shares the background of a PPM and how it is compiled.

[9:40] Matt adds that often a PPM is confused with an OM or offer memorandum. He shares what the difference is.

[11:00] Betty breaks down the different pages of a PPM and starts with describing the brochure to start.

[12:05] Betty then moves to the OM and explains more about what these pages have.

[13:45] She also shares that a PPM will contain pictures, maps, and specific information of the property. She lists what this information may include.

[14:40] Next you will find the risk and disclosures and after that will be the fine print.

[16:00] Matt adds that companies also may include investment highlights in the PPM.

[16:55] Betty then describes the fine print pages and what information it will contain.

[17:45] She explains how the table of contents can help you maneuver the PPM.

[19:10] Betty shares that prior performance is also an interesting thing to look up. She explains why.

[20:29] She also talks about the purchase agreement that you will have access to through the PPM prior to signing the document.

[21:15] Betty also talks about the financial forecast and the numbers page of the PPM.

[24:10] Matt gives a final overview of what the PPM should entail.

Resources

Website: https://www.kpi1031.com/

Call Kay Properties at 855-899-4597

Meet the Kay Properties Team: kpi1031.com/meet-our-team

About Kay Properties and www.kpi1031.com

Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible. Please speak with your CPA and attorney for tax and legal advice.

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.

Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate and more.

The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments

In this week's episode, Vice President Matt McFarland and Vice President Orrin Barrow talk about the risks when investing in real estate, specifically in DSTs. This is an important topic prior to making any investments and today they share how DST investors mitigate risks when they're getting ready to invest in a property.

Key Takeaways:

[1:00] Risks and disclosures.

[3:50] About Kay Properties & Investments.

[4:30] Matt introduces Orrin and today's topic.

[5:40] How are clients educated about the DSTs risks?

[6:30] With any investment, there are inherent risks.

[7:50] DSTs include fees so having confidence in the sponsor company's business plan and competency to overcome those fees is important.

[9:10] In addition to introductory conversations, Matt shares that they have a lot of resources available for educational purposes and actual private place memorandums.

[10:35] How do they identify risks and mitigate them through the DST structure?

[11:25] Some of the risks in real estate are foreclosures. Orrin shares some of the scenarios where this can happen.

[13:00] Orrin talks about different diversifications of an investor's proceeds and how this can help mitigate risks.

[14:10] Orrin also advises that if you don't need to take on debt in your exchange, then you can opt for debt-free properties to alleviate risks.

[14:55] He also shares what they do at Kay Properties on top to alleviate as much risk for the investor.

[15:50] Matt also adds further about concentration risk and why they try to avoid that in Kay Properties.

[17:55] He also mentions about certain asset classes that they won't touch in Kay Properties and explains why they view it to have higher risk.

[19:00] Matt also talks about competition risk and how their due diligence team vet their properties to identify this risk.

[20:20] In this very compressed market we have these days, Matt stresses the importance of these risks to be aware of and mitigate.

[22:25] Orrin also shares his sweet spot to start digging into the offer before your intended closing in today's market.

[23:35] Active vs passive investor. Orrin shares how DST is not for everybody.

Resources

Website: https://www.kpi1031.com/

Call Kay Properties at 855-899-4597

Meet the Kay Properties Team: kpi1031.com/meet-our-team

About Kay Properties and www.kpi1031.com

Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible. Please speak with your CPA and attorney for tax and legal advice.

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.

Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate, and more.

The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence, and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments

In this week's episode, Vice President Matt McFarland and Senior Vice President Jason Salmon talk about the flexible nature of the DST with its rules and guidelines and how that flexibility works with diversifying portfolios for more passive investments gains.

Key Takeaways:

[1:00] Risks and disclosures.

[4:15] About Kay Properties & Investments.

[4:55] Matt introduces Jason and today's topic.

[7:15] How do DSTs play into the 1031 exchange when it comes to identification based on the rules of the exchange? How is it different from a traditional purchase?

[9:10] There are three rules of identification: the three-property rule, the two hundred percent rule and the ninety five percent rule. Jason explains each of them.

[10:05] Through 1031, your proceeds must go through a qualified intermediary. Jason explains how the flexibility of DSTs can be useful here.

[12:00] Matt adds that since DSTs are pre-packaged investment properties, it can alleviate a lot of closing risks that can come with a 1031 exchange. He explains how.

[16:05] DST offers to diversify in a lot of ways but because of that, it is a matter of collaboration to know the best investment for each and everyone.

[16:20] Matt gives three examples of how an individual can utilize a DST for their 1031 exchange. First is by using it as a primary exchange option.

[18:05] The second example is about covering an exchange.

[19:00] Number three is using it as a back-up ID.

[24:15] When it comes to diversifying a portfolio, how do investors take advantage of the DSTs flexibility?

[25:05] What does diversification mean? Jason shares what it implies.

[26:34] With the DST structure, you are building your own diversified portfolio. Jason explains how they can help investors with that.

[27:30] Diversification can span in many different aspects. Matt summarizes what these aspects are.

Resources

Website: https://www.kpi1031.com/

Call Kay Properties at 855-899-4597

Meet the Kay Properties Team: kpi1031.com/meet-our-team

About Kay Properties and www.kpi1031.com

Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible. Please speak with your CPA and attorney for tax and legal advice.

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.

Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate, and more.

The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence, and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments

In this week's episode, Vice President Matt McFarland and Vice President Alex Madden dive into the importance of debt, how it works, and what are their advantages and potential risks in a 1031 exchange. Debt can be used as a powerful tool, but it is not without its risks.

Key Takeaways:

[0:45] Risks and disclosures.

[3:25] About Kay Properties & Investments.

[4:10] Matt introduces Alex and today's topic.

[5:00] How does debt work from a 1031 exchange? What are their advantages and potential risks?

[6:25] Why is debt important in a 1031 exchange? Alex explains and describes the process of replacing debt.

[7:15] When you sell a property and you intend to do a 1031 exchange, the regulations state you must purchase equal or greater value from what you sold. Alex shares some examples.

[9:15] How does debt replacement work when it comes to investing in a DST?

[10:10] DST investors do not need to provide financial information. Alex explains how they are not personally liable for their non-recourse loans.

[12:45] Matt adds that the DST is going to be acquired by the DST sponsor company prior to it being offered.

[14:40] What are some of the advantages and disadvantages when it comes to taking on debt in a DST? Alex shares what things investors should be aware of.

[15:50] Some investors like to have debt to be potentially more streamlined from a tax perspective.

[17:45] Debt comes with risk and DSTs are no exemption. Alex shares what risks could look like in the DST structure.

[19:55] Taking on more debt is not always the right decision especially when you're moving into retirement. Alex explains further why.

[21:50] Debt is not bad but it's important to understand the risk that is involved.

[23:45] Matt also adds another advantage with DST which is flexibility. He shares further why so.

Resources

Website: https://www.kpi1031.com/

Call Kay Properties at 855-899-4597

Meet the Kay Properties Team: kpi1031.com/meet-our-team

About Kay Properties and www.kpi1031.com

Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible. Please speak with your CPA and attorney for tax and legal advice.

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.

Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate, and more.

The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence, and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments

In this week's episode, Vice President Matt McFarland and Vice President Steve Haskell continue their exchange from last week about the pros and cons of triple net assets and DSTs. They talk more about the different risks both investments have and which one allows for more flexibility and diversification.

Key Takeaways:

[1:20] Risks and disclosures.

[4:05] About Kay Properties & Investments.

[4:45] Matt introduces Steve and shares that today is part two from last week.

[6:50] Steve shares a quick overview from last week's conversation.

[9:20] Matt describes what a DST is in comparison with a triple net asset.

[10:30] What would be the main reasons why investors would prefer a DST over a triple net?

[11:20] When you buy a triple net property, debt is gonna be expensive as long as the lease is running out. Steve shares further.

[12:40] In DSTs, you can diversify. Steve shares how DSTs can be used as an anchor for your portfolios.

[15:15] Matt highlights that investing in DSTs does not shelter investors from risk but in triple net, the risks can be more concentrated. He shares more insights into these risks.

[18:20] Risks can't be eliminated entirely but DSTs have a flexibility that allows you to control your investment in a way.

[20:40] The DST structure allows all types of investors to buy a piece of asset that they wouldn't normally be able to afford on their own.

[22:00] Triple net lease assets are not truly passive. Steve explains why.

[23:20] Steve shares that most of his clients are looking for truly passive investments with multiple levels of risk mitigation. Therefore, they encourage diversification.

[24:05] Matt shares a story from another representative about the reimbursement part of owning a triple net.

[25:20] These stories are not uncommon. The purpose of Kay Properties educating their investors is for them to make informed decisions about their investments.

[28:36] Matt shares that the most rewarding part of his job is the long term relationship he develops with his clients. Majority of their revenue comes from repeat investments.

Resources

Website: https://www.kpi1031.com/

Call Kay Properties at 855-899-4597

Meet the Kay Properties Team: kpi1031.com/meet-our-team

About Kay Properties and www.kpi1031.com

Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible. Please speak with your CPA and attorney for tax and legal advice.

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.

Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate, and more.

The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence, and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments

In this week's episode, Vice President Matt McFarland and Vice President Steve Haskell circle back on the topic of the difference between triple net lease properties and DSTs. They discuss which option would be relevant for new prospective clients and investors looking to generate passive income.

Key Takeaways:

[0:55] Risks and disclosures.

[4:10] About Kay Properties & Investments.

[4:55] Matt introduces Steve and today's topic.

[6:35] Triple Net Lease Properties vs DST. Which is the passive option?

[7:25] Triple net is an asset whether it's a DST or not. Steve shares what are the different options based on different types of investors.

[8:20] What is a triple net lease property? Matt explains.

[9:10] DST is a type of entity that is used to hold titles to a piece(s) of real estate. Both triple net and DST can go together.

[10:20] Steve describes some of the triple net lease properties represented in Kay Properties.

[12:50] What are the advantages of buying through DST vs triple net?

[14:05] Steve talks about a client that he inherited as an example.

[15:25] Triple net is great and passive until something goes wrong. Steve expounds on this further.

[18:45] Matt adds what other types of tenant profiles can be represented with Kay Properties and their advantages.

[20:35] DSTs can provide true access into the institutionalized playing field of investments.

[21:40] What are the major benefits of DST vs triple net?

[24:30] Kay Properties focuses on posture in the market to mitigate the volatility to weather a potential storm.

Resources

Website: https://www.kpi1031.com/

Call Kay Properties at 855-899-4597

Meet the Kay Properties Team: kpi1031.com/meet-our-team

About Kay Properties and www.kpi1031.com

Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible. Please speak with your CPA and attorney for tax and legal advice.

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.

Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate, and more.

The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence, and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments

In this week's episode, Vice President Matt McFarland and Vice President Jason Salmon talk about what is the purpose of a DST and the different motivations behind it. They also talk about the different types of investors they work with and how DSTs could be relevant to you.

Key Takeaways:

[1:00] Risks and disclosures.

[4:00] About Kay Properties & Investments.

[4:45] Matt introduces Alex and today's topic.

[6:00] What is the overall purpose of a DST?

[8:50] Jason summarizes the major motivations for DSTs.

[9:45] Matt also adds that Kay Properties makes institution-size real estate deals accessible to private high network accredited investors.

[11:00] How do they define the top priorities of these DSTs and what do they provide to investors?

[12:30] Some investors lend towards specific categories of real estate for the purpose of preservation of wealth. Jason expounds on this further.

[14:30] Jason also shares about how DST can be used for tax deferrals.

[15:30] The predictability of DSTs is also an advantage. Matt shares further.

[18:20] Jason shares how the market place of DSTs has evolved in favor for investors in different types of situations.

[19:45] Real estate through the DST structure is not so different from other property investments. Jason explains why.

[21:10] Who are the typical investors that Kay Properties work with?

[23:00] Jason shares what are the requirements to invest with them. Investors they work with are generally passive.

[25:15] Other than passive investors, Matt also shares other types of investors they typically work with.

Resources

Website: https://www.kpi1031.com/

Call Kay Properties at 855-899-4597

Meet the Kay Properties Team: kpi1031.com/meet-our-team

About Kay Properties and www.kpi1031.com

Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible. Please speak with your CPA and attorney for tax and legal advice.