Delaware Statutory Trust (DST) 1031 Exchange

Discover the Potential Benefits of Investing in Delaware Statutory Trusts (DSTs)

What is a DST?

A Delaware Statutory Trust (DST) is a way for investors to own a share of a property. The trust is set up by a sponsor who buys the property. As more people invest, their contributions gradually replace the original purchase funds until they fully own the property.

This structure lets investors passively own commercial property at a relatively low cost.

Can You 1031 Exchange a DST?

A 1031 exchange allows you to defer capital gains taxes by reinvesting the proceeds from the sale of an investment property into a like-kind property.  

A Delaware Statutory Trust (DST) qualifies as like-kind property, making it possible to move your 1031 exchange into a DST. Individuals can invest in a DST as the replacement property or sell it as the relinquished property. Like other replacement properties, DSTs can be the entire investment, or funds can be spread through multiple DSTs or other properties that qualify. 

Why Do Investors Choose DSTs?

Passive Investment
 
DSTs eliminate the usual responsibilities of managing investment properties, allowing for a hands-off, "armchair investment" approach.   
 
Limited Responsibilities
 
Investors have no management or day-to-day responsibilities related to the property, making it attractive for those seeking less direct involvement.
Access to Larger Properties
 
DSTs often include larger and more expensive properties, such as industrial properties, which might be too costly to purchase outright. 
 
Portfolio Diversification
 
Investors can diversify their portfolios by spreading funds across different investments instead of placing all funds in one property. 
 

Is a DST Right For You?

Here are a few key factors to consider:

Long-Term Investment
DSTs are generally intended for holding periods of two years or longer, making them less suitable for short-term property investments. Also, DSTs are illiquid assets, meaning they cannot be easily converted to cash or funds like other investment types. 

No Management Authority
Investors have no control over strategic decisions, which may be a downside if they disagree with the sponsor's choices. 

Market Risk
As with all real estate investments, market fluctuations can impact the profitability of the investment. 

Accredited Investors Only
DSTs are designed for accredited individuals as defined by the SEC. 

Due Diligence Required
Potential investors should conduct thorough due diligence on the sponsor, property, and other aspects of the trust. 

Looking for a DST Opportunity?

If you're seeking a Delaware Statutory Trust (DST) opportunity for a 1031 exchange, we can assist you in locating resources and possible options. Equity 1031 offers the ability to browse potential DST providers to make it easier for you to connect with investment opportunities. From there, you can conduct your own due diligence before investing and choosing a DST that is right for you.

When you're ready to explore potential DSTs, Equity 1031 Exchange is here to help provide information and education specific to your journey. Complete the form below and we will contact you to discuss your situation and investment goals: 

 

Equity 1031 Exchange is not an affiliate of any DST provider. Since Equity 1031 does not provide investment, legal, or tax advice, it makes no recommendation or representations as to any DST provider or their offerings, conduct your own due diligence. Any provider that offers investment education or advice solely reflects the views of such provider and in no way represents any recommendation or advice from Equity 1031. Opinions or ideas expressed by providers are not necessarily those of Equity 1031 nor do they reflect Equity 1031’s views or endorsement. You are free to choose a provider with services/offerings as you deem appropriate. Please consult with your financial, tax, and legal professional before choosing to work with any provider.

Getting Started with a 1031 Exchange

If you’re interested in doing a 1031 exchange with Equity 1031, please complete this form. A member of our team will then contact you within one business day to start your 1031 exchange.

Please note: you must set up your exchange before closing on your property. We request three to five business days to set up a Standard Exchange. Contact Equity 1031 Exchange for timelines on setting up a Reverse or Improvement Exchange.

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Why Choose Equity 1031 Exchange?

Our staff has over 50 years of combined experience facilitating 1031 exchanges.

Equity 1031 Exchange has 2 CES® (Certified Exchange Specialists®) on its team.

Equity 1031 Exchange is nationwide. We facilitate 1031 exchanges in every state. Our nationwide presence gives us experience in exchanges of all types. 

We are a proud member of the Federation of Exchange Accommodators (FEA).

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