Debt Free Delaware Statutory Trust
Using Debt Free Delaware Statutory Trust (DST) Portfolios
When it comes to long term real estate investors, most clients are selling debt free properties. Investment properties that have been held long term, typically have a low cost basis and large capital gains. Real estate investors do not want to pay the capital gains tax, and look at alternative investments in a 1031 exchange. A Delaware Statutory Trust can be a great investment product to defer the capital gains tax, provide passive monthly income, and potential appreciation when the DST property is sold. Some real estate investors prefer to do a 1031 exchange into a Debt Free Delaware Statutory Trust (DST) in order to continue replacing debt free properties. With the rise of interest rates, we are seeing more and more Debt Free Delaware Statutory Trust portfolios by DST sponsors. Delaware Statutory Trust sponsors are using their free cash flow to acquire large $200m-$300m investment properties with all cash and securitizing them into a DST. This is allowing more real estate investors the opportunity to do a a 1031 exchange into a Debt Free Delaware Statutory Trust property. We work with many Delaware Statutory Trust companies that are coming out with more Debt Free Delaware Statutory Trust portfolios. When interest rates were low, we saw a large influx of leveraged DST portfolios. The shift in rising interest rates is giving debt free real estate investors the opportunity to invest into Debt Free Delaware Statutory Trust portfolios. If you are considering selling, in the process of selling, or about to close escrow on a debt free investment property, we can help provide information on Debt Free Delaware Statutory Trust properties in a DST. Once we verify you are an accredited investor, we can present all available Debt Free Delaware Statutory Trust portfolios from different DST sponsors. If you are in this category and looking for Debt Free Delaware Statutory Trust properties, please fill out the contact form below or call our office today at 805-583-2720 to speak to a Debt Free Delaware Statutory Trust representative.
*The properties depicted here are representative examples of the types of property that can be owned within a DST. They are not intended to depict or represent any particular investment offering.
Benefits of Debt Free Delaware Statutory Trust (DST) Properties
For some real estate investors, they just want to have a clean transaction and stay with Debt Free Delaware Statutory Trust properties. There are some benefits to Debt Free Delaware Statutory Trust portfolios in a 1031 exchange. One of the benefits of a Debt Free Delaware Statutory Trust in a 1031 exchange is the opportunity to 1031 exchange out of the DST property when it is sold. Many real estate investors are taking advantage of the strong real estate and selling their debt free properties. They might have the intention to 1031 exchange out of the DST property when it is sold, and purchase a physical property and get back into property management. If they want to continue to stay debt free with their subsequent exchange, they look for Debt Free Delaware Statutory Trust properties. This will allow a clean transaction in a 1031 exchange, and not have to worry about replacing the debt. Another Debt Free Delaware Statutory Trust benefit is the all cash DST companies could have higher cash on cash returns without the burned of paying interest on the loan. We have seen this with our Debt Free Delaware Statutory Trust company, AEI. Another benefit to doing a 1031 exchange into a Debt Free Delaware Statutory Trust investment, is the default risk of the DST company not being able to make their mortgage payment. Investing into a Debt Free Delaware Statutory Trust property might make the real estate investor sleep better at night knowing they are invested into an all cash property. Despite the fact that we only work with the top DST companies, in the US, this can still pose a concern forreal estate investors. If you are a real estate investor who is looking for Debt Free Delaware Statutory Trust investments, please fill out the form below or call our office directly at 805-583-2720 and we can help answer any questions you have.
*The properties depicted here are representative examples of the types of property that can be owned within a DST. They are not intended to depict or represent any particular investment offering.
Using Debt Free Delaware Statutory Trust Portfolios With Leverage
If you are going to be selling an investment property and there is a low LTV (loan to value) you can do a 1031 exchange into a Debt Free Delaware Statutory Trust property. There are leveraged DST properties that can have up to 55-60% LTV that you can use to replace the debt on your relinquished property. If you have a low LTV of 30% or lower, we can utilize a leveraged DST portfolio with Debt Free Delaware Statutory Trust to make sure we replace your debt in your exchange. At Winthco Wealth Management, we will do the math and calculations to blend Debt Free Delaware Statutory Trust portfolios with leveraged DST properties to ensure there is now boot in your 1031 exchange. Some DST portfolios and asset classes that you are interested in may be Debt Free Delaware Statutory Trusts. You still need to replace your debt, but you really want and all cash DST portfolio that has remaining equity. Our team will run the numbers to see how much leverage you need with a particular DST portfolio to ensure you can invest into a Debt Free Delaware Statutory Trust. There are many different asses classes that can be debt free. We have seen Amazon distribution centers, senior living, multifamily, medical office buildings, and more to come. If you are interested in exploring Debt Free Delaware Statutory Trust portfolios in your 1031 exchange, please fill out the form below, or call our office directly at 805-583-2720. We will respond to you in a timely manner for you to speak with a licensed representative. We look forward to educating you on the debt free dst opportunities!
*The properties depicted here are representative examples of the types of property that can be owned within a DST. They are not intended to depict or represent any particular investment offering.
