December 2024
Real Estate Transition Solutions
1031 Exchanges & Delaware Statutory Trusts
Article: How a Delaware Statutory Trust (DST) Works
New DST Properties: Senior Living & Multifamily DSTs
DST Sponsor Spotlight: Carter Exchange
Case Study: Example of Section 121 Exclusion
How a Delaware Statutory Trust Works
Are you considering selling your investment property and transitioning to truly passive income? A Delaware Statutory Trust (DST) offers a 1031 exchange-qualified solution, enabling you to reinvest tax-deferred sales proceeds into a diversified portfolio of institutional-grade properties—all without the hassles of property management. Whether you're exploring 1031 exchange opportunities or alternative investment strategies, DSTs provide a simplified path to steady, stress-free returns.
In this comprehensive guide, we break down how DSTs work, their advantages, and the key factors to consider before investing. From understanding fractional ownership to evaluating property types and trust structures, this article provides valuable insights to help you make informed decisions. Click below to explore the full story and discover how DSTs can fit into your financial strategy.
Inspired Senior Living of New Braunfels
Inspired Healthcare Capital Inspired Senior Living of New Braunfels DST owns The Blake at New Braunfels, a 112-unit senior living community in Texas. The property is currently 88.4% occupied and offers 1- and 2-bedroom units ranging on average from 317 – 778 square feet. The property offers two levels of care including assisted living and memory care. All residents have access to a wide range of services including 24-hour nursing, community dining, concierge services, housekeeping and community activities.
NEW OFFERING - Now Available in the DST Marketplace
Multi-Family DST Property in Arizona
This 286-unit, high-occupancy multi-family property, built in 2016, offers modern, upscale one-, two-, and three-bedroom units with features such as granite countertops, wood-style flooring, and large kitchen islands. Residents benefit from an impressive suite of amenities, including a resort-style pool, spa, fitness center, bocce ball court, and surround-sound theater room.
Requirements to View Open DST Properties
To explore this DST property and access the full range of DST investment opportunities, request access to the DST Marketplace. In compliance with U.S. securities laws, you must be an accredited investor and complete a brief Marketplace Orientation call with a licensed 1031 DST Exchange advisor.
Request Access to DST Marketplace
A DST sponsor is a professional real estate company that identifies, acquires, and manages real estate assets for fractional ownership under a Delaware Statutory Trust (DST) structure. Key activities include conducting due diligence, purchasing investment-grade properties, structuring DST offerings, securing financing, and managing the properties on behalf of investors. Sponsors handle operational aspects like leasing, maintenance, and compliance, ensuring a passive income stream for investors while aligning with 1031 exchange requirements.
SPOTLIGHT: Carter Exchange
Carter Exchange Fund Management Company, LLC (CXFM), founded in 2019, specializes in Delaware Statutory Trust (DST) investments, focusing on Class A multifamily, industrial, and commercial real estate leased to creditworthy tenants. As part of the Carter Funds family, which manages over $3 billion in assets as of August 2023, CXFM emphasizes high-quality assets, rigorous due diligence, and strategic value-add initiatives to enhance property performance and investor returns.
Using a Section 1031 Exclusion with Primary Residence
This case study highlights how Jack and Rose, a working couple in their forties, used the Section 121 Exclusion and a 1031 Exchange to transition from managing single-family rentals to passive investments in Delaware Statutory Trusts (DSTs). Their strategic move optimized tax benefits, boosted returns, and aligned their investments with their lifestyle goals.
1031 Exchange Fundamentals
December 10, 2024 | 11:00 am PT
Learn how to use 1031 Exchanges to defer, reduce, and or eliminate capital gains taxes. This session offers expert guidance on identifying premium properties in appreciating markets, enabling you to diversify your portfolio effortlessly and minimize risk. Discover strategies to enhance cash-flow and unlock passive income potential while shedding the hassles of landlord responsibilities. Plus, you gain valuable knowledge on compliance essentials and selecting the right properties to align with your investment objectives.
Investing in DSTs: What You Need to Know
Watch Any Time
Discover the essentials of Delaware Statutory Trusts (DSTs), a leading option for 1031 Exchange investors. This comprehensive webinar explains the fundamentals of DSTs, how they operate, and their key advantages and risks. Gain insights into popular DST property types, identify DST replacement properties, and explore top-performing markets. Perfect for investment property owners seeking clarity and guidance on this strategic option.
About Real Estate Transition Solutions (RETS)
For over 26 years, Real Estate Transition Solutions (RETS) has helped investment property owners understand, select, and acquire suitable Delaware Statutory Trust (DST) properties that meet both their financial and lifestyle objectives. Our approach is grounded in education, transparency, and, above all, putting the best interests of our clients first.
About Austin Bowlin, CPA
Austin Bowlin, CPA, is a Partner at Real Estate Transition Solutions (RETS), a national real estate investment advisory firm specializing in 1031 Exchange strategies and Delaware Statutory Trust investments. As Chief Exchange Strategist, Austin leads the firm’s team of licensed 1031 Exchange advisors and analysts. His work focuses on tax analysis, developing tax-deferral strategies, legal entity restructuring, co-ownership arrangements, 1031 replacement property options, and Delaware Statutory Trust investments.
Disclaimer
The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the Sponsor’s Private Placement Memorandum (PPM) which is solely available to accredited investors and accredited entities. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million dollars exclusive of primary residence) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney.
There are material risks associated with investing in DST properties and real estate securities including liquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potentially adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk. Because investor situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation.
Securities offered through Aurora Securities, Inc. (ASI), member FINRA/SIPC. Advisory services through Secure Asset Management, LLC (SAM), a Registered Investment Advisor. ASI and SAM are affiliated companies. Real Estate Transition Solutions (RETS) is independent of ASI and SAM. To access Aurora Securities’ Form Customer Relationship Summary (CRS), please click HERE. For Secure Asset Management’s Form CRS, click HERE. Real Estate Transition Solutions, ASI, and SAM do not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstances.
Client examples are hypothetical and for illustration purposes only. Individual results may vary. This site is published for residents of the United States only. Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all services referenced on this site are available in every state through every advisor listed. For additional information please contact 888-694-6480 or email info@re-transition.com.