The Realized Team’s Picks
DST Exit Scenarios: Refinance, Sale, or UPREIT Conversion
As an investor, your usual primary focus when investing in Delaware Statutory Trusts (DSTs) is the cash flow and tax-deferral benefits. However, there is one other aspect worth your scrutiny: the exit strategy. How and when you transition from the DST is crucial to your investment planning, especially if you’re entering through a 1031 Exchange.
What Happens When a DST Property Sells Sooner Than Expected
Beyond the passive income and tax-deferral benefits offered by Delaware Statutory Trusts (DSTs), investors find these investments appealing because of the promised predictability and stability. However, nothing is set in stone in real estate investing, and there are times when sponsors initiate a property sale before the agreed-upon holding period is over.
How Debt Structure Impacts Returns in a Delaware Statutory Trust
As Delaware Statutory Trust (DST) sponsors acquire assets to include in the DST portfolio, they will use leverage to fund the purchase. Some investors may not care about this detail as long as the DST can deliver its promised returns. However, debt structure can have a major effect on the returns of a DST investment.
The Life Cycle of a Delaware Statutory Trust Investment
Delaware Statutory Trusts (DSTs) hold a lot of promise, especially for investors who want benefits like tax deferral and access to income from institutional-grade assets. However, before entering one, it pays to be informed regarding all aspects of this investment.
DST Minimum Investment Requirements: What Determines the Entry Point
In recent years, Delaware Statutory Trusts (DSTs) have become a popular investment vehicle, offering income from institutional-quality assets while providing tax-deferral benefits. However, to enjoy these advantages, you must first meet DST investor qualifications. One of these is the minimum investment requirement.
Understanding Appraisals and Valuations in DST Offerings
Delaware Statutory Trusts (DSTs) provide a passive, institutional-quality investment opportunity without the burden of active management. However, moving into these structured products requires comprehensive due diligence. Two crucial aspects are appraisals and valuations, but they are often conflated, which may lead to some confusion regarding the true value of your beneficial interests.
How to Handle Partial Ownership Sales of Rental Properties
Navigating the sale of rental properties with partial ownership can feel like you're caught between a rock and a hard place. This complexity often arises in scenarios involving real estate partnerships, joint ownerships, or properties held in entities such as LLCs. Yet with careful planning and a well-informed approach, you can maneuver through these intricacies while optimizing both financial and tax outcomes.
Should You Sell Your Rental Property Before or After Tax Season?
For investment property owners, timing the sale of a rental property can be as crucial as deciding to sell it in the first place. Among the many considerations—ranging from market conditions to financial needs—tax implications play a pivotal role. One critical decision factor is whether to sell before or after tax season, each option presenting different advantages.
Selling a Short-Term or Vacation Rental Property: Special Considerations
Deciding to sell your short-term or vacation rental property is no small feat. As an investment property owner, there are several unique factors to consider that can significantly affect your decision and the outcome. Whether driven by market conditions, evolving personal circumstances, or strategic portfolio management, it's essential to approach the sale with a well-informed perspective.
DST Risk Factors Every Investor Should Understand
In recent years, Delaware Statutory Trusts (DSTs) have become popular investment vehicles. Benefits like tax deferral and hands-off involvement appealed to many types of investors. However, even with these advantages, DSTs are not without risks. Some emerge from the structure of the trust itself, while others are inherent to real estate investing. Whatever the case, it’s important for you to understand DST risk factors to better prepare for the possibilities.
