Benefits of 1031 Exchange DST

Delaware Statutory Trust

Diversification

Investors can select multiple Delaware Statutory Trusts properties as part of their 1031 Exchange allowing diversification of asset classes, cities and level of needed non-recourse debt.

Lower Minimum Investments

1031 Exchange DST have lower minimum investments often as low as $100,000 of equity. If you require a lower investment amount than the stated minimum, let your Corcapa 1031 Exchange representative know and we may be able to negotiate a reduction in certain circumstances.

No Individual Annual LLC Filings

Potentially lower fees in 1031 Exchange DST investments than Tenants in Common investments. The 1031 Exchange DST investment does not require a special purpose LLC entity that needed to be annually maintained and paid for.

The most common reason that investors select DSTs is for a potentially greater cash flow than they are currently receiving. Most DSTs have between a 4.00% – 5.50% projected cash flow based on the anticipated rental income less expenses. For example, if you invest $1,000,000 of equity into a DST with a 4.5% projected cash flow, this would provide a projected net annual income of $45,000. This could have a higher net cash flow than your current rental property. Note: with all real estate the income cannot be guaranteed because the rental income and expenses can increase or decrease unexpectedly.

Non-Recourse Loans

Virtually all the loans within the 1031 Exchange DST that are approved by DAI Securities, LLC are non-recourse which means the investor does not personally guarantee them.

Financing Access

Easier access to financing for investors needing debt on their replacement property and potentially quicker closings.

Larger Property Access

Access to Institutional Grade properties which are typically larger commercial properties that previously required significant capital to purchase.