If investors choose to invest through a 1031 exchange for the tax-deferral benefits, they'll need to understand the many rules that govern the transaction. One of these rules is the 45-day identification period, which is further complicated by the minimum number of properties they are required to identify. Thankfully, Delaware Statutory Trusts (DSTs) have features that help … [Read more...] about Using Multiple DSTs to Satisfy the 3-Property and 200% Identification Rules
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Laddering DST Maturities to Manage Reinvestment and Interest-Rate Risk
Today, many passive investors undergoing 1031 exchanges use Delaware Statutory Trusts (DSTs) to complete the transaction. These investment vehicles provide key advantages like professional management, hands-off involvement, and access to institutional-grade assets. … [Read more...] about Laddering DST Maturities to Manage Reinvestment and Interest-Rate Risk
Tenant Default in a Single-Tenant DST: Lease Remedies, Cash Flow Interruption, and Investor Protections
Various arrangements can occur in a Delaware Statutory Trust (DST), but the passive income and tax-deferral benefits remain the same. One of these structures is the single-tenant DST, which is when the trust owns an asset with a single financially strong tenant. While this arrangement offers stable income and requires less burdensome oversight, tenant default remains a risk … [Read more...] about Tenant Default in a Single-Tenant DST: Lease Remedies, Cash Flow Interruption, and Investor Protections
Master Tenant vs. Delaware Trustee: Who Does What in a DST?
As you enter a Delaware Statutory Trust (DST) for tax-deferral and diversification benefits, you’ll learn lots of specifics, like the concept of the master tenant and the DST trustee. You may find these terms confusing because of their similarities, but the master tenant and trustee are two totally distinct parties. Knowing the differences helps you understand how your … [Read more...] about Master Tenant vs. Delaware Trustee: Who Does What in a DST?
Bankruptcy-Remote Structures in DSTs: How Investor Liability Is Isolated
Many modern investors find Delaware Statutory Trusts (DSTs) appealing because they offer tax-deferral benefits and diversification without the headaches of hands-on management. Beyond these well-known benefits, these investments also follow a bankruptcy-remote structure that helps protect investors from liabilities tied to sponsors and other investors. … [Read more...] about Bankruptcy-Remote Structures in DSTs: How Investor Liability Is Isolated