Kay Properties Podcast

Many rental property owners decide they are tired of actively managing their investment real estate, and decide to sell. The problem is that very often these assets have appreciated greatly in value, and there is a hefty capital gains tax bill associate with the sale. That's why many investors opt to pursue a 1031 exchange.

However, the problem with the 1031 Exchange is the associated timeline: 45 days to identify a property, 180 days to close on said property. Usually, it's that initial 45-day identification period, which includes weekends and holidays, because it goes very, very fast. So it can be very tough for investors to put a property under contract. That's where the Delaware Statutory Trust is used as a reliable backup strategy.

Kay Properties and Investment's Delaware Statutory Trust experts, Matt McFarland and Alex Madden examine the mechanisms for using Delaware Statutory Trusts as a debt replacement strategy for 1031 exchanges.

In this episode, Kay Properties Senior Vice Presidents Matt McFarland and Alex Madden discuss why there is a commercial real estate debt crisis, how it's affecting real estate across the country, and why debt-free investing is quickly growing in popularity.

Listen to Steve Haskell and Matt McFarland, two Senior Vice Presidents with Kay Properties as they discus the dangers of over-concentration in real estate investing, and how Delaware Statutory Trusts can help investors potentially create a potentially more diversfied real estate portfolio. While diversification does not guarantee profits or protects agains losses, being able to establish a portfolio with multiple asset classes across multiple geographic regions is one of the benefits associated with Delaware Statutory Trusts.

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. One of the best ways to maximize this real estate investment strategy is by first understanding the pros and cons of the Delaware Statutory Trust.

In this podcast, Dwight Kay, Founder and CEO of Kay Properties and Investments jumps right into three specific advantages and three disadvantages associated with DST 1031 exchanges and provide a comprehensive look into this popular investment strategy.

1. Investors use DST properties to diversify out of the stock/bond markets while also deriving a tax-advantaged potential income stream.
2. Investors who are considering selling a large investment property over the coming months and or years often find potential value in investing a smaller amount of direct cash into a DST on kpi1031.com as a "test" investment. This way when they do have a large 1031 exchange coming, they have had real experience with DSTs and Kay Properties.

Created for ease of use and efficacy, the kpi1031.com online marketplace is considered by thousands of investors a best-in-class robust platform that connects high-net-worth investors with quality real estate offerings. The platform is also a place for Delaware Statutory Trust sponsor firms to connect with tens of thousands of high-net-worth investors seeking to deploy capital into real estate offerings.

For investors seeking DST investment opportunities, this online marketplace has created a perfect match for all sides of the 1031 exchange and real estate investment equation.

Kay explained that in addition to being able to review DST opportunities online, investors can also receive a free physical listing menu, called the "1031 Exchange DST Property Menu" where they can view the current DST investment opportunities available.

Kay Properties and Investments Managing Director and Executive Vice Presdient Betty Friant joins Senior Vice Presdient Matt McFarland to unpack triple net properties.

The topic of NNN properties comes up frequently, especially when speaking with passive real estate investors. Because there are multple options for investors who are seeking passive investments, we want to take a closer look at just how the triple net properties fits into the DST space, and secondly, what investors in a 1031 exchange should be thinking as they consider various passive real estate investments.

Listen to Delaware Statutory Trust experts Alex Madden, Senior Vice President, and Orrin Barrow, Senior Vice President as they review the significance of Delaware Statutory Trust Asset Class Rejection.

Specifically, they will be discussing:

✔️What exactly is an asset class for real estate and Delaware Statutory Trusts?

✔️ Why is asset class rejection important when investing in Delaware Statutory Trusts?

✔️Consider some of the risks of senior care assets in Delaware Statutory Trusts.

✔️Potentiall risks associated with student housing Delaware Statutory Trusts.

Here are some highlights and time stamps from the recording:

4:26 – What are Asset Classes?

8:29 – Why Certain Delaware Statutory Trust Asset Classes Are Rejected?

12:41 – Inherent Risks of Senior Care Delaware Statutory Trusts

16:41 – Risks Associated with Hospitality Delaware Statutory Trusts

19:16 – Risks Associated with Student Housing Delaware Statutory Trusts

25:32 – Risks Associated with Oil and Gas Delaware Statutory Trusts

Kay Properties and Investments Matt McFarland Senior Vice President and Tommy Olson, Vice President discuss a very specific case study on a recent 1031 exchange transaction completed by a family out of Northern California. The goal of this podcast is to provide insight into how decisions were made and the background of why this family decided to choose the DST investment structure and how the investment process was approached and eventually completed.

Listen to the Delaware Statutory Trust experts from Kay Properties and Investments, Steve Haskell, Senior Vice President and Thomas Wall, Senior Associate as they review the differences between Delaware Statutory Trusts, Real Estate Funds, and LLCs.

They will be discussing:

• What are the differences between DSTs, Funds, and LLCs.
• Why DSTs are used for 1031 Exchanges, and Real Estate Funds are not.
• Why Real Estate Funds are used for investors looking for potentially greater cash flow.
• How are returns calculated differently in a DST and Real Estate Fund?
• Why not all Real Estate Funds look alike and why are they different in makeup than DSTs?