1031 Exchange DST

1031 Exchange DST Investments

1031 Exchange DST programs are available for those who have rental properties looking to defer their capital gains. 1031 Exchange DST  can help those who are looking to sell, or who are in escrow of a rental property and do not want to pay the capital gains tax accrued on their rental property. A 1031 Exchange DST is a great tool and investment vehicle that is used to exchange the current rental property proceeds into an investment vehicle that invests into a pool of rental properties. The 1031 Exchange DST program is a product that is quick and easy to use for those investors who do not want to pay the capital gains tax they have accrued. For those who are reading this article and are not familiar with a 1031 Exchange DST, we will go over some of the pros and cons of a 1031 Exchange DST.

1031 Exchange info

1031 Exchange DST Pros And Cons

There are many pros and cons to a 1031 Exchange DST, however there are more pros than cons for a 1031 Exchange DST. Some of the pros of a 1031 Exchange DST is that you can defer the capital gains into a fractional interest in a portfolio of rental properties. This means that you do not have to manage your rental property anymore, and you will receive monthly distributions from your fractional interest.  The cash distributions that come from a 1031 Exchange DST products range anywhere from 5-7%. This is a great income tool that you can use without having to pay a management company to handle your rental property. The 1031 Exchange DST has full service management companies that handle renovations, repairs, tenants, and insurance on these properties. There are many other pros of a 1031 Exchange DST that could be explained in more detail if you click any of the links and contact an investment specialist that can help you. Some of the cons of a 1031 Exchange DST may include that fact that your investment is illiquid. This means that you cannot cashout any time that you would like. If you need the cash you would have to find an investor willing to buy your factional interest in the DST. This could be a challenging task. One of the other cons of  a 1031 Exchange DST is the investment time horizon is long term. A 1031 Exchange DST investment product is typically 7-10 years.

1031 Exchange DST

1031 Exchange DST Brokers And How To Invest

If you are looking to get into a 1031 Exchange DST investment there are two options. You can invest directly into a 1031 Exchange DST and the minimum investment is $25,000. The other way to get into a 1031 Exchange DST investment is when you are selling your rental property you can exchange your property proceeds into the 1031 Exchange DST investment portfolio. In order to do this, you need to use a qualified intermediary instead of taking constructive receipt of the proceeds from the sale of the rental property. Once you take constructive receipt of the proceeds from the sale, you are subject to the capital gains tax. This is why it is essential to use a qualified intermediary to hold the funds without taking constructive receipt of the funds. you will need a 1031 Exchange DST broker to handle the paperwork which is fairly simple and easy to complete. A 1031 Exchange DST broker can provide documents and get them executed in as little as 48 hours. If you are looking to utilizing the 1031 Exchange DST benefits, then we can help you find a broker that will help you complete this transaction as quick and easy as possible. Get in touch with an experienced 1031 Exchange DST broker by clicking any of the links above or you can call – 805-603-4378 or email kyle@winthco.com and they will assist you with your 1031 Exchange needs!

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