Benefits of a 1031 DST Exchange


1. Good-bye being a landlord. 

Being a landlord can be time consuming and stressful. Not having those concerns could make your life easier.

2. Enhanced cash flow potential. 

Many clients have increased their monthly income - often tax advantaged - through professional managed institutional commercial properties.

3. Property diversification by geographic and property types.

Owning fractional shares of institutional properties - varied by types and in different parts of the country - could bring a diversification aspect to your property holdings that is difficult to achieve in a “conventional” individual property to property exchange. 

4. Less time-line deadline stress. 

Many times, a 1031 Exchange investor finds meeting the 45-day identification period and the 180-day exchange period deadlines difficult to arrange.

5. Flexibility to Invest the amount you want with a low minimum investment. 

Many times, with a conventional 1031 Exchange you cannot find a replacement property with the same dollar value as the relinquished property.

6. Eliminate "Boot." 

If you paid less for your replacement property than you received on the sale of your relinquished property.

7. Lower liability. 

The DST is the sole owner of the property-each investor has a "beneficial interest" in the trust. This means you do not have a deeded title, nor any personal liability for the property.

8. Potential stream of income. 

DSTs are allowed to keep on hand a reasonable amount of cash reserves in the event the property requires unexpected expenses.

9. Pre-Arranged Financing. 

There could be ongoing challenges for 1031 investors obtaining favorable financing for an individual property to property exchange.


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