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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