PORT JEFFERSON, N.Y., June 1, 2016 /PRNewswire/ -- Fortitude Investment Group, LLC, is proud to announce the launch of their new website www.1031DST.com that is focused on educating and partnering with accredited real estate investors, qualified intermediaries, real estate attorneys, and CPAs. These partnerships will help facilitate 1031 exchange transactions utilizing a Delaware Statutory Trust (DST) to defer taxes on the sale of investment real estate while becoming a passive investor.
About 1031 DSTs
1031 DSTs are securitized real estate programs that are eligible for 1031 exchanges and are 100% passive investments. In accordance with the Internal Revenue Service's Revenue Ruling 2004-86, a beneficial interest in a Delaware statutory trust, or "DST," that holds a replacement property may be considered "like-kind" replacement property in a Section 1031 exchange. A DST may own one or more properties. The Delaware Statutory Trust (DST) may give the seller the ability to diversify out of a highly-appreciated, single investment property into multiple sector classes, such as healthcare, multi-family, triple-net retail, student housing and other classes. This real estate is available across the country managed by some of the largest institutional real estate firms in the United States. These firms include, but are not limited to, Inland, Passco, Blue Rock, Exchange Right, Capital Square, AEI, Four Springs, NorthStar, and others.*
Advantages of the DST
One of the major advantages of the DST is that they come in all shapes and sizes. Some are all cash and some can have leverage with loan to values ranging up into the 80% plus ranges. The debt that is in place on the DST is non-recourse to the investor and the investor receives all the potential benefits of the debt on the property. Typically, a program will run anywhere from 5 to 10 years. DSTs may be a very important asset for a client selling a property looking for a full replacement or partial replacement to complete their 1031 exchange.
The acquisition or sale of a Delaware Statutory Trust (DST) for the purpose of a tax-deferred 1031 exchange qualifies for treatment under section 1031 of the Internal Revenue Code ("1031 Exchange"). Investors will be able to sell the existing investment property or beneficial interest in a DST and complete a 1031 exchange into another "like-kind" investment property or beneficial interest in a new DST.
*List of companies is for example purposes only. The companies listed are independent of Fortitude, CIS, CAM and CIA, and do not represent current offerings. DST 1031 properties are only available to accredited investors (typically have a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last three years) 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 risks associated with investing in a Delaware Statutory Trust (DST) and real estate investment properties including, but not limited to, the loss of the entire principal, declining market value, tenant vacancies and illiquidity. 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.
The information herein has been prepared for educational purposes only, does not constitute an offer to purchase or sell securitized real estate investments, and is not meant to be interpreted as tax or legal advice. Because investors' situations and objectives vary this information is not intended to indicate suitability for any particular investor. Please speak with your legal and tax advisors for guidance regarding your particular situation.
Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC, an SEC registered investment adviser. Insurance offered through Concorde Insurance Agency, Inc. Fortitude Investment Group is independent of CIS, CAM and CIA, all of whom are unaffiliated with third-party sites, cannot verify the accuracy of, nor assume responsibility for any content of linked third-party sites. Information available on third-party sites is for informational purposes only. Fortitude Investment Group, CIS and CAM are unaffiliated with the aforementioned companies within.
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