What Is The Purpose Of A Delaware Statutory Trust?

You may be a real estate investor, but have never heard of a Delaware Statutory Trust or DST. You may be wondering,  what is the Purpose Delaware Statutory Trust? In this article we will explain what the Purpose Delaware Statutory Trust is, how it work, and the reasons why real estate investors utilize the DST in their 1031 exchange. After reading this informational article about what is the Purpose Delaware Statutory Trust, you may have more questions, or would like to schedule a consultation call. Our team would be more than happy to explain what the Purpose Delaware Statutory Trust is and help answer any questions you may have about the 1031 DST. To get all of your questions answered, please fill out the contact form below, or call our office directly at 805-583-2720 to speak to a representative now! 

What Is The Main Purpose Delaware Statutory Trust?

The main Purpose Delaware Statutory Trust is to defer the capital gains tax from the sale of an investment property? How is that possible you may ask? Well you can achieve the deferral of capital gains tax into a Delaware Statutory Trust by utilizing the IRS code section 1031. If you are a real estate investor, you are aware of the 1031 exchange. The IRS allows you to do a 1031 exchange for like kind property. What if you do not want to do a like kind 1031 exchange and have to manage the property any more just to defer your capital gains tax. Well the Purpose Delaware Statutory Trust allows you to defer the capital gains tax and receive passive monthly income as if you were still a landlord. The Purpose Delaware Statutory Trust is to defer your capital gains tax by entering into a 1031 exchange and invest your proceeds into a portfolio of real estate that have been acquired by the Delaware Statutory Trust companies. Keep in mind, the main Purpose Delaware Statutory Trust is to defer the capital gains tax when you sell your investment property. Given the Delaware Statutory Trust does provide passive monthly income, as well as potential capital appreciation when the DST properties are sold, the main Purpose Delaware Statutory Trust is deferring your capital gains tax! If you have an investment property for sale, considering selling, or would like to learn more about the Purpose Delaware Statutory Trust, please fill out the contact form below or call our office directly at 805-5830-2720 to speak to a representative now. 

Reasons Delaware Statutory Trust Are Becoming More Popular For Real Estate Investors 

Some of the reasons Delaware Statutory Trust 1031 exchanges are becoming so popular in todays real estate market is because of the lack of inventory. Real estate investors are taking advantage of the strong growth of the real estate market and selling with huge appreciation of their investment real estate. For those that do not know the Purpose Delaware Statutory Trust, they may be scared to do a 1031 exchange into a DST because of the lack of inventory that is out there. While this is true if you are considering a traditional 1031 exchange. The Purpose Delaware Statutory Trust is to allow you to 1031 exchange into the DST properties that have already been acquired and have available equity for real estate investors to become fractional owners in a large pool of investment properties that have already been acquired by the DST companies. The Purpose Delaware Statutory Trust eliminates the need and stress for you to try and find a replacement property in this low inventory environment. The Purpose Delaware Statutory Trust also allows you to defer your capital gains tax and not have to be a landlord and deal with tenant on a daily basis. The Purpose Delaware Statutory Trust is to have large amounts of real estate inventory available for you to 1031 exchange into these class A institutional grade investment properties. If you find some of these reasons a Delaware Statutory Trust can be beneficial for you, please fill out the contact form below, or call our office directly to learn more about the DST and speak to a live representative today! 

Purpose Delaware Statutory Trust That Provides You Passive Income

If you are a real estate investor and you are tired of being a landlord and dealing with tenants, then one of the Purpose Delaware Statutory Trust is to provide you passive monthly income.  Not only is the main Purpose Delaware Statutory Trust to defer the capital gains tax when you sell your rental property, but it can also provide you passive monthly income. The Purpose Delaware Statutory Trust is to pay you passive monthly income without ever having to manage a property again. The Purpose Delaware Statutory Trust company is to acquire a class A investment property and become the master tenants on these properties. This means that they are reasonable to managing the properties, collecting rents, any repairs/maintenance so you do not have to. The Purpose Delaware Statutory Trust is to collect the rent from its tenants, and pass along the profits of the property to the real estate investor who did a 1031 exchange into the DST properties. We like to call this mailbox money! You simply receive either a check in the mail each month, or an automictic deposit into your checking account each month. The Purpose Delaware Statutory Trust is also to hold these investment properties for an average of 5-7 years and sell the DST properties with good appreciation levels. When the DST properties are sold, any realized appreciation gets returned back to the investors. If you want to utilize the strategy of swap till you drop, you can 1031 exchange from DST to DST as long as you live, thus never having to pay capital gains tax! The Purpose Delaware Statutory Trust is to take the stress out of real estate management and provide you passive monthly income, deferral of capital gains tax, and potential appreciation when the DST properties are sold.  If the reasons Delaware Statutory Trust that we just explained sound appealing to you, then fill out the form below or call our office directly (805) 583-2720 to speak to a live representative today to speak in more detail about the DST. 

*Disclosure:

This website is neither an offer to sell nor a solicitation of an offer to buy any security which can be made only by a prospectus, or offering memorandum, which has been filed or registered with appropriate state and federal regulatory agencies, and sold only by broker dealers and registered investment advisors authorized to do so.

Additionally, we cannot offer any of our open offerings unless we have a pre-existing relationship with a customer.  Once we have obtained sufficient information to perform an evaluation of our new customers’ financial circumstances and sophistication in determining his or her status as an accredited investor, we would be able to discuss future offerings once they become available.