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What are the Pros and Cons of the Delaware Statutory Trust (DST)?


Download the 6 Page Thought Leadership on Understanding 1031 Exchanges and Delaware Statutory Trusts

Benefits of DSTs


Sizing and Timing Upsides Associated with DSTs: Investors no longer must worry about identifying replacement properties that qualify them for a 1031 exchange or closing on a property within the specified timeframe. Instead, they can identify and invest in an open DST portfolio anytime during their exchange period.


Timing: Since the timeline to find and purchase a similar investment is quite tight, DSTs make it easier for investors to replace their property within the exchange period.


Diversification Benefits of DSTs: DSTs may allow you to diversify your real estate holdings by property type and geography. For example, instead of purchasing one like-kind property, an investor may choose to invest in a multi-property DST or multiple DSTs.



Other Benefits of DSTs:

  • Predictable income stream

  • Passive real estate ownership

  • Opportunity to invest in potentially newer, larger, or higher quality properties in high growth markets

  • Investment in multiple properties and asset classes

  • Opportunity to invest in real estate in states with lower or no state income tax - providing additional tax savings.

  • Ability to pass the appreciated asset to heirs, using a “stepped-up basis” and potentially avoiding the payment of capital gains taxes forever. See below:

An illustration of the benefits of DSTs
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Special Thanks to our Contributor

The logo of Keystone National Properties

www.knpre.com

invest@knpre.com


Keystone National Properties (KNPRE) is a real estate and private equity firm whose team is passionate about delivering value, the strategic growth of the firm, and positively impacting the world. KNPRE’s founding philosophy is “Doing well by doing good.”


This material does not constitute, or form part of a solicitation in any state or other jurisdiction or offer to purchase or issue any interest in an investment vehicle or any security or investment product. Any such offer or solicitation will only be made pursuant to the respective investment vehicle’s offering documents and relevant subscription documents, which will be furnished to qualified investors on a confidential basis at their request. The information contained herein has been prepared by Keystone 1031 and is current as of the date hereof.


PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. AN INVESTMENT IN ANY REFERENCED INVESTMENT VEHICLE COULD SUFFER LOSS.

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Important Disclaimers
This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC. 

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