Each offering has a detailed Private Placement Memorandum (PPM) to review which clearly explains the fee structure. Every offering is slightly different, but you can review the specific fees which are generally found in the Estimated Use of Proceeds table. You do not pay an outside check or fee to [...]
Most of the DSTs have loans associated with the properties to help the clients meet the debt needs of their relinquished property. These loans are typically Non-Recourse which means the investor does not sign off on guarantees of the loan. The Lender makes a loan to the Trust, who is [...]
The most common reasons that investors select DSTs are: 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 [...]
The DST sponsor will provide you quarterly reporting delivered either electronically or via mail. There is a comprehensive year-end report provided which also gives you the tax reporting information you would provide to your accountant to complete your taxes.
Yes, DST ownership is similar to traditional real estate ownership and the year-end tax reporting will detail your share of the depreciation expenses.
Projected cash flow begins the very next month after investment. For example, if you close on your DST purchase on August 15th, you will typically receive a distribution on September 15th for all the days you were invested in August. The October distribution would be a full month distribution for [...]
This depends on the velocity of the real estate market. There is currently a significant upswing in 1031 exchange activity and also an upswing in the purchase of DST properties. More attractive DST offerings can sell out quickly so it’s important to alert your Corcapa representative early on and let [...]
To accomplish a full tax deferral on the sale of rental property you must follow the IRS Section 1031 Guidelines. Corcapa 1031 Advisors recommends the following: Be in communication with your Corcapa 1031 Advisors representative well ahead of your proposed relinquished property sale closing date so we can begin to [...]
The Revenue Ruling 2004-86 issued by the IRS governs how the DST should be structured so that the purchase of a DST will fit within the guidelines of a 1031 exchange. Corcapa works with sponsors of DST offering who structure the offerings with a legal opinion for 1031 exchange purchases. [...]
While Corcapa is happy to refer you to accommodators, we cannot provide accommodator/Qualified Intermediary services. We specialize in the replacement properties for our clients’ 1031 exchanges.
Corcapa 1031 Advisors is a Finra www.finra.org registered branch office located in Costa Mesa, CA. Securities offered through DAI Securities, LLC, member FINRA/SIPC.
A DST is an acronym for a Delaware Statutory Trust which is fractional ownership, a separate legal entity created as a trust under the laws of Delaware in which each owner has a beneficial interest in the DST for federal income tax purposes and is treated as owning an undivided [...]
