post-title Find more about Delaware Statutory Trust Investing 2018-07-13 11:09:16 yes no Posted by Categories: Real Estate

Find more about Delaware Statutory Trust Investing

Posted by Categories: Real Estate

Average people are starting to buy into real estate. Why? You may ask. Because they wish to invest their hard-earned money into assets that create income. As opposed to other types of passive investment, real estate is appreciable and provides a reliable cash flow. The average Jane or Joe can invest in the real estate space. If you want to add real estate holdings into your portfolio, then you should consider the Delaware Statutory Trust. The DST is an interesting investment vehicle that is designed specifically for the US taxpayer. If you have, say, $50,000 or $100,000, you can invest in real estate without great difficulty. All you have to do is to put your money into the Delaware Statutory Trust. Why settle for rental property when there are other alternatives.

Investing in a Delaware Statutory Trust

Let us imagine the following scenario: You have rental property and you would like to sell that asset. The only problem is that you cannot do so without deferring capital gains tax. The profit realized on the sale of the real estate will be greater than the amount of money spent on the purchase, so it is taxable. The good news is that you are able to defer paying capital gains. You buy an interest in a DST and defer capital gains tax by means of a 1031 exchange. Commonly referred to as a Starker, the 1031 exchange is simply a way to swap real property for productive use. The property is in the possession of the Delaware Statutory Trust and qualifies as like-kind, meeting the requirements of the Internal Revenue Service. If you find the idea of deferring capital gains tax tempting, consider Delaware Statutory Trust investing. You have got nothing to lose.

Looking to perform a 1031 exchange              

When it comes to selling investment homes, the only option there is to defer income tax is to complete a 1031 exchange through a Delaware Statutory Trust. With a DST, your return is lower due to the fact that there are many investors. This may be so, but it is important to not forget that the ownership is safer, unlike other options. There are many investors and they all share the risk. Contrary to popular belief, the most secure asset is not the one that you own yourself. The best thing that you can do is buy interest in a DST and do it right now.

In order to conduct a 1031 exchange, you must have direct ownership in the Delaware Statutory Trust. It does not matter if the asset that you are considering is a rental apartment, retail space or fitness center. You have the possibility to invest in all kinds of large spaces that you would not normally have access to. Getting financing is not a problem and you are not responsible for making operational decisions. Now, is that not great or what? You have all the facts. The only thing that you have to do now is make a decision.  

Top