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:
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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.”
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