For investors over 65, Delaware Statutory Trusts (DSTs) offer a compelling option for a 1031 exchange, particularly when considering estate planning. DSTs present a strategic advantage for older investors due to their passive management structure, which alleviates the burdens of active property management. This can be especially beneficial for those who may wish to reduce their involvement in the day-to-day operations of rental properties or who may face physical limitations or time constraints.

One key benefit of DSTs is their ability to provide a diversified steady stream of potential income while requiring minimal hands-on management. Investors can enjoy the financial benefits of real estate ownership without the responsibilities associated with direct property management. This is a significant advantage for older investors who may prefer to focus on other aspects of their retirement.

Furthermore, DSTs offer a notable estate planning benefit through the option of a 721 exchange into an Up-REIT (Real Estate Investment Trust). This flexibility allows investors to convert their DST interests into private operating units of the REIT (Real Estate Investment Trust). Which at the owners for what liquidity purposes needed or beneficiaries’ discretion in case of the passing of an estate can convert to shares of the REIT, which can provide liquidity and facilitate a smoother transfer of assets upon the investor’s death. This feature simplifies estate planning and can potentially reduce estate taxes, making it an attractive option for managing wealth and ensuring a more straightforward succession plan.

However, it's important to consider potential downsides. DST investments involve less direct control over property decisions compared to actively managed real estate, which might not align with every investor's preferences. Additionally, the fees associated with DSTs and the Up-REIT exchange can impact overall returns, which warrants careful evaluation.

Ultimately, DSTs offer a practical and efficient alternative for older investors conducting a 1031 exchange, blending the benefits of passive income with enhanced estate planning options. Nonetheless, it's crucial to weigh these advantages against the potential drawbacks and consult with a financial advisor to tailor the strategy to individual goals and needs.

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*Past performance is no guarantee of future results. *Diversification does not guarantee returns and does not protect against loss. *Preferred return is not guaranteed and is subject to available cash flow. *These examples are the experiences of a few of our clients and may not represent the experience of others. *These testimonials may not be representative of the experience of other clients. These clients were not compensated for their testimonials. Please speak with your attorney and CPA before considering an investment. *All DST properties shown are Regulation D Rule 506(c) offerings. All Offerings are subject to availability. There can be no assurance that any DST properties and offerings will be available for purchase. *DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million exclusive of primary residence, and/or possessing an annual income of over $200,000, or $300,000 with a spouse and expects the same or greater for the current year) and accredited entities (generally described as an entity owned entirely by accredited investors and/or owning investments in excess of $5 million). Please check with a qualified CPA or attorney to determine if you are accredited.

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed.

Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA) Fortitude Investment Group is independent of CIS, CAM, and CIA.