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, Senior Vice President Betty Friant and Vice President Alex Madden talk about debt and how it works within the 1031 exchange and DST. Debt can be a tool for investors seeking to potentially grow their portfolio. Investors should also understand the risks and consider alternatives.

Key Takeaways:

[0:50] Risks and disclosures.

[3:25] About Kay Properties & Investments.

[4:30] Betty introduces Alex and today's topic.

[5:15] What is the importance of debt in a 1031?

[5:50] One rule with debt is the requirement to purchase equal or greater value real estate from what has been relinquished. Alex expounds on this further.

[7:45] What is a debt free DST?

[9:10] What are the advantages of owning a property with debt?

[13:00] Alex also talks about some of the reasons why investors don't want to take on debt.

[15:15] The flexibility surrounding exit strategy is an advantage with DSTs. Alex shares some examples.

[17:20] Betty also mentions cross collateralization and why it could be a disadvantage with debt.

[18:20] How does debt continue with future exchanges?

[20:30] It's important to consider the long-term ramifications before taking on more debt.

[21:40] Alex also shares what are the types of debt free properties in the market now.

[23:10] If Alex was a first time DST investor, would he pick one with or without debt?

[25:00] Betty also talks about doing a trial run DST and how that can be useful to new investors.

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 dig into the details surrounding an investor's experience on a full cycle DST. This topic is an excellent introduction to new DST investors so tune in to learn more!

Key Takeaways:

[1:00] Risks and disclosures.

[3:50] About Kay Properties & Investments.

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

[6:20] Jason explains what it means for a DST to go full cycle.

[9:30] He also shares what investors can expect in terms of timelines.

[11:05] When the sponsor firm running the deal has a real offer, they usually circulate a preliminary notice to investors.

[12:15] The investors will be asked if they will do another 1031 exchange or take their proceeds. Jason shares what happens next with both scenarios.

[13:40] Jason also talks about replacement property options and what that means.

[16:30] It's not uncommon when investors are not content with the offers, they get to take it off the table and go back to the market.

[17:45] What is the best way for an investor to prepare for a full cycle event?

[18:20] Timing is everything. Jason shares how the market conditions affect that.

[20:45] Nonetheless, there are options based on any deals that would be in the market. What's important is to buy equal or greater value.

[21:50] Jason advises to consider options proactively rather than just waiting for a sale.

[23:15] Matt also adds what could be a good timing from the closing date to seek out specific replacement options.

[25:00] Jason closes to share that if anyone would like to know more about these concepts to reach out to their registered representatives for a more detailed walk through.

Resources

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

Call Kay Properties at 855-899-4597

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

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 talk about different asset classes, their perceived variability, and which ones they recommend against investing in. They share their reasons as to why certain assets are too risky for their investors to pursue.

Key Takeaways:

[1:00] Risks and disclosures.

[4:10] About Kay Properties & Investments.

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

[6:55] What is an asset class and what are the different asset classes available?

[9:20] How are properties classified in these different asset classes?

[9:40] Alex reminds the investor to discuss with their registered representative before diving into classification of assets.

[10:30] He also shares example scenarios of different asset classes such as multifamily.

[11:40] Another class would be a net lease asset type. Alex expounds on this further.

[13:25] Alex also shares an example of an anchor and buoy approach.

[14:20] Matt also expounds further on perceived variability of these approaches.

[16:50] Multifamily vs single tenant commercial property. Matt shares what could be valued higher and why.

[18:35] What's the best DST? Alex explains what the dependencies are.

[20:40] Alex also shares the asset classes that they avoid and why.

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 share the questions they would ask investors to better understand them and their unique goals. Their goal is to always have the investor in mind and to match them with the best investments based on their risk tolerance and where they are in life.

Key Takeaways:

[1:00] Risks and disclosures.

[4:15] About Kay Properties & Investments.

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

[6:20] Matt greets Betty with a Happy Birthday!

[7:45] First, they talk about the relinquished property. Betty shares what questions they usually ask their clients.

[10:35] It's highly encouraged to talk to your CPA and attorneys as they provide legal advice. It might be that you won't need a 1031 exchange.

[13:00] What questions should investors ask when they are getting to the specifics of a transaction?

[13:55] Betty talks about one couple doing DSTs and shares what she advised them to do to fulfill their dream.

[15:45] Betty also explains why they need to know where you are in your investing life.

[18:35] The goal of asking all these questions is to ensure that your investment is the best fit.

[19:35] Betty also mentions 721 Exchange UPREIT and a brief overview of what they are.

[20:35] Betty shares an example of her own properties to explain what lazy equity is.

[22:05] What does having a balanced portfolio with DST look like?

[25:15] Betty also wants to know the type of decision-maker the investor is and explains why.

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 their different approaches to working with a client and their focus on the different stages of the investment process. It is Kay Properties’ goal to better educate and bring value to its investors.

Key Takeaways:

[0:55] Risks and disclosures.

[4:00] About Kay Properties & Investments.

[4:45] Matt introduces Steve and today’s topic.

[5:50] What is the educational process of a prospective investor?

[7:05] Steve shares what are his priorities when entering people as investors.

[9:10] How does debt function in a DST?

[9:45] What are the strategies for doing a 1031 exchange using DST?

[10:55] Going closer to escrow, Steven shares what a sample portfolio would look like and how to refine it.

[11:40] Steven would like to have everything set up so they can close the DSTs as soon as possible.

[12:45] DST investments work well for many people but do not fit everyone so education is key.

[14:25] Phase two is exposure to different approaches and developing different strategies.

[16:25] Before getting into deals, it’s important to get a better understanding of the concept of DSTs, investments, and risks early into the process.

[18:25] Engaging an investor’s CPA and real estate attorney early on is really important.

[20:30] Timing is key. The more time we have on our side, the better.

[21:50] Preparing and building a foundation of knowledge in advance will alleviate a lot of the stress in the decision-making process.

[23:45] DSTs are not for getting rich, they are for preserving capital.

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 Chay Lapin talk about how DSTs can potentially benefit an investor's situation despite the many moving parts of the current economic environment. They also dive into how investors can diversify their risk and potentially protect their wealth.

Key Takeaways:

[0:55] Risks and disclosures.

[3:55] About Kay Properties & Investments.

[4:40] Matt introduces Chay and today's topic.

[5:30] How has the current real estate environment impacted some of the DST trends?

[7:05] Chay provides an overview of the marketplace and the trends he sees.

[10:11] There are opportunities that arise but overall cap rates have gone down.

[11:35] What are some of the challenges that Chay has faced during acquisition and how has it impacted DST investments?

[12:35] Investors are only making 1-2% profit on a cash on cash investments vs. investing on high-risk real estate property at 7% return and unlocking equity.

[15:00] Even though they are low returns, we need to look at the big picture and the tax consequences you might be facing.

[16:15] Chay believes it's time to put ourselves in a defensive position as there are a lot of moving parts in our current economic environments.

[18:25] Prices have skyrocketed but over time there is a potential to raise rents which will offset that.

[19:05] Matt dives more into trapped equity and what it's about.

[22:45] Chay shares an example of how much you can achieve with a $100 rent increase on a unit.

[24:40] He shares more advice for investors within the DST structure.

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 zero coupon DSTs on this week's episode. They provide an overview of why some investors choose these DSTs over others, who will benefit from a deal like this the most, and some of the pros and cons of buying a zero coupon DST.

Key Takeaways:

[0:55] Risks and disclosures.

[4:00] About Kay Properties & Investments.

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

[5:50] Kay Properties have 3 types of DSTs that investors can choose from.

[6:40] Orrin explains what a zero coupon DST looks like.

[9:10] You hold on to these particular DSTs for a longer period of time.

[11:00] What types of zero coupon deals can you find and acquire?

[11:40] Who type of investor would benefit the most from a deal like this?

[14:15] Orrin breaks down a smart way to structure your portfolio with zero coupon DSTs.

[17:00] What kind of risks should investors be aware of?

[19:40] You have to be aware that you might be hit with a 'phantom tax' bill.

[22:00] Despite those risks, the right investor can still see a lot of benefits based on their unique situation.

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 talk about the 1031 exchange, its history, and where the new administration might change things. Legislators have tried to change the 1031 exchange in the past, but it still offers a lot of very beneficial tax advantages for many Americans and real estate investors. Find out more on what to expect in the upcoming years.

Key Takeaways:

[0:55] Risks and disclosures.

[4:15] About Kay Properties & Investments.

[5:10] Matt introduces Alex and today's topic.

[5:40] There might be some changes happening in the 1031 exchange. What do investors need to be aware of?

[7:20] We don't have a crystal ball, but this is the information that we know about right now.

[9:50] President Trump spoke about completely removing the 1031 exchange.

[10:15] Exchanges were removed for other assets like cars, jets, and more, but the real estate 1031 exchange was still kept intact.

[12:00] Real estate has really thrived in this country and the 1031 exchange is a powerful part of the tax code for investors to take advantage of.

[15:00] What types of changes can investors expect to see in the 1031 exchange tax code?

[20:15] Regardless of how legislators might feel about this benefit, the money the government generates from the 1031 exchange alone is very substantial and can't be ignored.

[23:15] How do DSTs play into all of this?

[26:10] Reach out to your Kay Properties representative for any additional questions you might have!

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 importance of a private placement memorandum and what investors should be looking for/understanding in a document like this. They also go into how they structure this document and the journey they help their investors through as they begin to purchase DST real estate.

Key Takeaways:

[0:55] Risks and disclosures.

[4:00] About Kay Properties & Investments.

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

[5:45] Why is a Private Placement Memorandum (PPM) so important?

[11:30] A quick overview of what a PPM usually looks like.

[16:35] What should you be looking for in the executive summary?

[20:15] A big part of what Kay Properties does is diagnose, categorize, and understand risk when it comes to investing in real estate.

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 go into the benefits of a triple net property within a DST structure. With Betty's extensive experience as a triple net real estate broker, she has been on both sides of the space and underlines some of the unseen risks of owning a triple net property outright vs. in a DST.

Key Takeaways:

[0:55] Risks and disclosures.

[4:00] About Kay Properties & Investments.

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

[6:45] What is a triple net property?

[10:25] What are some of the benefits of a triple net property?

[13:45] If you were to buy a commercial property on your own, there's a lot of legwork and due diligence involved.

[16:25] What's the distinction between a DST and a triple net property?

[20:15] Matt breaks down the inflation risk that you can have on a triple net property.

[23:35] Despite being in this space for a long time, Betty has not bought a triple net property outright because of its price tag. However, when it was structured in a DST, it became a different story.

[26:00] Matt shares some additional DST benefits.

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.