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How to Conduct Due Diligence on a Delaware Statutory Trust (DST) Investment
Investing in a Delaware Statutory Trust (DST) offers certain advantages, especially for those seeking passive real estate opportunities or completing a 1031 exchange. However, as with any investment, conducting thorough due diligence is essential to assess its suitability, risks, and alignment with your financial goals. This guide outlines key steps for evaluating a DST investment, with a focus on industry-specific considerations.
What to Look for in a Delaware Statutory Trust (DST) Sponsor
Delaware Statutory Trusts (DSTs) offer an opportunity for passive real estate investment and 1031 exchange benefits. A significant factor in determining the success of your investment is the DST sponsoring or managing the DST, often called a “sponsor.” Choosing the right DST sponsor is a critical element to ensuring your investment aligns with your financial goals and risk tolerance. Here’s a guide to what you should consider when evaluating a DST company.
Can You 1031 Exchange Out Of A Delaware Statutory Trust (DST)?
A 1031 exchange is a powerful tax-deferral strategy for property investors, allowing them to reinvest proceeds from a property sale into “like-kind” properties to defer capital gains taxes. Delaware Statutory Trusts (DSTs) are increasingly popular for fractional ownership of high-value real estate. But what happens when you’re ready to exit a DST? Can you still use a 1031 exchange?
What Are the Seven Deadly Sins of a Delaware Statutory Trust (DST)?
A Delaware Statutory Trust (DST) is a versatile tool for real estate investment property owners to facilitate 1031 exchanges, spread their risk, and potentially receive passive income from real estate investments. However, like any other form of investment, DSTs have pitfalls that must be understood and managed to achieve the desired results.
DST Ownership Structure: Who Controls a Delaware Statutory Trust?
Delaware Statutory Trusts (or DSTs) have become popular, offering advantages like capital gains tax deferral and passive income. As such, more and more investors now want to learn about this investment vehicle’s relatively complex ownership structure.
