Delaware Statutory Trust Benefits
Learn more about the potential benefits of Delaware Statutory Trust investments for 1031 tax deferred exchange.
There are a number of advantages of delaware statutory trust investments and potential benefits of DSTs for 1031 Exchanges. As a 1031 investor it is important to review the potential benefits as well as potential risks prior to investing.
For experienced guidance and if a Delaware Statutory Trust property for your 1031 tax deferred exchange is the right investment for you, contact us and a 1031 Exchange specialist will review your options – (949) 722-1031.
Advantages of Delaware Statutory Trust
Delaware Statutory Trusts (DST) are attractive for the following reasons:
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.
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.
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.
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