Page 90 - AAGLA-MAY 2022

Member Update
That’s why many landlords are utilizing Delaware Statutory Trust (DST) 1031 Exchanges to exit the active management role of owning rental real estate and allowing them to diversify. DSTs are a form of fractional ownership that can be used to make passive investments in real estate and achieve monthly income potential via ACH direct deposit and diversification across multiple assets. Also, because DSTs are eligible for 1031 Exchanges, investors can sell their investment property and reinvest the proceeds into one or more DST investments while deferring capital gains and other taxes.
Another reason DST investments are popular among real estate investors is because many types of diverse real estate assets can be owned in a DST, including industrial, multifamily, self-storage, medical and retail properties. Also, it is not uncommon to find properties within a DST investment include institutional quality assets like those owned by large investment firms such as a 450-unit Class A multifamily apartment community or a 100,000-square- foot industrial distribution facility leased to a Fortune 500 logistics and shipping company.
In addition, Delaware Statutory Trust 1031 Exchanges offer real estate investors the following specific benefit potential as well:
• The ability to close their 1031 Exchange within typically 3-5 days
• The opportunity to eliminate the hassles of tenants, toilets, and trash (i.e., the “Three T’s”).
• The potential to receive regular monthly distributions via automated clearing house (ACH) direct deposits
• The ability to access institutional grade real estate assets
• The potential advantages associated with greater portfolio diversification by geography, tenants, and asset class*
Here’s The Bottom Line
Investment properties have gone through significant changes over recent years, and in many cases, owners have been faced with challenges they have never seen before, including the COVID-19 pandemic, and ensuing eviction moratoriums. For qualified property owners who are motivated to sell in the near future and are facing capital gains, reinvesting the proceeds in qualifying properties including DSTs will allow them to not only defer capital gains taxes but also become part of a diversification* strategy with the potential for appreciation and monthly income.
Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay’s clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST. Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over $15 Billion of DST 1031 investments. For a look at the types of DST properties investors are using for estate planning purposes please visit the Kay Properties marketplace at www.KayAAGLA.com. This material does not constitute an offer to sell nor a solicitation of an offer to buy any security.
Dwight Kay is the Founder and Chief Executive Officer of Kay Properties and Investments LLC. Kay Properties is a national 1031 exchange investment firm. The www.KayAAGLA.com platform provides access to the marketplace of 1031 exchange properties, custom 1031 exchange properties only available to Kay clients, independent advice on sponsor companies, full due diligence and vetting on each 1031 exchange offering (typically 20-40 offerings) and a 1031 secondary market.
90 MAY 2022 • WWW.AAGLA.ORG
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