Guiding real estate investors through their 1031 exchanges

As early as possible. Some investors call before listing a property; others call after the sale closes. Starting early allows more time to review options before the 45-day identification period begins.

A Delaware Statutory Trust is a legal entity that holds title to real estate. Investors buy fractional interests in the trust, and the sponsor manages the property. Under IRS guidance, a DST interest can qualify as replacement property in a 1031 exchange.

Investors have 45 days from the sale to identify replacement property in writing and 180 days to close. The two periods run at the same time. The 180 days end sooner if that year's tax return is due first, unless an extension is filed.

Yes. Sale proceeds go to the qualified intermediary, not the investor, and are used to buy the replacement property. Our team coordinates with the intermediary at closing.

To defer all of the tax, investors generally need to reinvest all net proceeds and replace any debt that was paid off. Anything kept or not replaced may be taxable. A CPA can confirm the numbers.

Yes. Many clients divide their proceeds across several DSTs to spread risk across property types, locations, and sponsors, within the identification rules.

Most DST offerings are private placements available only to accredited investors. Eligibility is confirmed during registration.

They vary by offering and are disclosed in each offering's documents. Our team walks through the costs of each opportunity before a client decides.

Generally, no. DST interests are illiquid, there is no assured secondary market, and investors should plan to hold until the sponsor sells the property, which is often several years.

Investors can lose their entire investment. DSTs are illiquid, investors have limited control, distributions are not guaranteed, and results depend on the property, its tenants, its financing, and the sponsor. Read the offering documents and consult a CPA and attorney before investing.