Tags: DST 1031 Exchange

DSTs enable you to diversify your real estate investment by asset type, size and even geography.

A natural concern of investment property owners today who are considering a property sale and new purchase using a 1031 Exchange, is the income-producing strength of the replacement property. The economic impacts of the coronavirus have wreaked havoc on the commercial real estate industry, rendering once strong property types highly vulnerable.

That’s one reason you may want to consider using the Delaware Statutory Trust (DST) structure for your exchange. Because DSTs have the latitude to purchase properties of different asset types, different sizes and in different locations, you would have access to investment choices that may perform better than others as we work our way through and out of this current recession. Those choices may also offer the potential for better income or capital growth than what is currently available to you with a traditional 1031 Exchange. Perhaps of most importance, the ability to broadly diversify may help you minimize your investment risk.

So, while you may currently own a residential rental property and were thinking of exchanging into a similar property, DST sponsors offer you the ability to have fractional ownership in many different property types including:

  • Multi-Family Apartment Buildings
  • Single-Tenant Net Lease Retail Properties
  • Medical Office Buildings
  • Self-Storage Properties
  • Student Housing Properties
  • Industrial Distribution Centers
  • Commercial Office Buildings
  • Hospitality Properties
Since DST investors own a ‘fractional interest’ in a property, you may be able to invest in much larger, institutional-quality property than you would with a 1031 Exchange. And finally, DST sponsors offer properties throughout the United States, giving you options to own in areas that may have stronger economic fundamentals that others at this moment in time.

For more information, please feel free to contact our team.  You can also schedule a one on one meeting with us at your convenience here

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Daniel Raupp

Under Daniel Raupp's guidance since 2000, Fortitude Investment Group, LLC has guided clients into over $1 billion worth of securitized real estate investment offerings directly and indirectly, in both the DSTs for 1031 Exchanges and REITs. In the areas of real estate, tax advantaged investments, insurance, retirement, and estate planning, he is able to set up comprehensive, individually tailored client portfolios designed to help remove market volatility and maximize income potential without undue risk.

Inspired by his father’s dedication to customer service and hard work, Daniel directs a range of strategic initiatives in the firm to successfully leverage core competencies in tax efficient investing, alternative investments, and operational excellence to create customer value. His credentials include a Series 7 General Securities Representative (GS) License, Series 24 Principal of General Representatives License, Series 63 Uniform Securities Agent License, and a Life/Accident and Health Agent License. Check Daniel’s background on FINRA’s BrokerCheck.

This is for informational purposes only and is not an offer to buy/sell an investment. There are risks associated with investing in Delaware Statutory Trust (DST) and real estate investment properties including, but not limited to, loss of entire principal, declining market value, tenant vacancies and illiquidity. Diversification does not guarantee profits or guarantee protection against losses. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This information is not meant to be interpreted as tax or legal advice. 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 (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.

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