Managing Debt in a DST
RealtyMogul Vice-President Stephen Haskell walks you through “Managing Debt In a DST” where he highlights the potential benefits that are unique to debt in DSTs and also identifies the risks associated with mortgages.
Interested in learning more? Please contact our team of 1031 specialists.
Interested in learning more? Please contact our team of 1031 specialists.
Cash Flow Sweeps
Cash Flow Sweeps
Learn the various ways debt can potentially damage or limit a DST’s business strategy.
Bridge Loans
Bridge Loans
Understand the potential benefits of debt that are unique to DSTs.
Cross-Collateralization
Cross-Collateralization
Balloon Loans
Balloon Loans
Explore articles on Managing Debt in a DST
1031 Exchange
Role of Debt in a
1031 Exchange
1031 Exchange
The increase in retiring landlords has led to a surge in 1031 capital flowing into passive solutions like Delaware Statutory Trusts (DST) and Tenants-In-Common (TIC). These investors are typically drawn to the turnkey nature of 1031 solutions, investing in high-quality real estate with potential passive income.
1031 Exchange
Questions To Ask Before Investing
In A DST With Debt
In A DST With Debt
If an individual exchanges one investment property for another via a 1031 exchange, they may be able to defer capital gains or losses that they would otherwise have to pay at the time of sale.
1031 Exchange
A Critical Look at Debt Free DSTs
Investing in real estate through Delaware Statutory Trusts (DSTs) has become an increasingly popular strategy, particularly for those looking to defer taxes via a 1031 exchange. Debt-free DSTs offer a unique set of benefits that can make them an attractive alternative. However, it is important to take a close look at the structure, asset characteristics, and fees involved to assess the best option for each exchanger’s unique situation. This article offers a critical review of debt free DSTs. We will start off with the benefits.
1031 Exchange
Potential Benefits
of Debt in a DST
of Debt in a DST
Delaware Statutory Trusts (DSTs) have become a popular investment vehicle for real estate investors, particularly those involved in 1031 exchanges. One of the most compelling features of DSTs is their ability to easily access non-recourse debt that satisfies 1031 exchange requirements and provides numerous other potential benefits.
1031 Exchange
5 Risks to Consider
When Buying Real Estate with Debt
When Buying Real Estate with Debt
Debt can be a powerful tool in real estate investment, enabling investors to leverage their capital and acquire properties that would otherwise be out of reach. However, whether through traditional mortgages, commercial loans, or more complex financial instruments, the use of debt in real estate can introduce significant dangers that must be carefully managed. From cash flow constraints and refinancing challenges to foreclosure risks and market volatility, understanding the potential pitfalls of debt is crucial for any investor.
1031 Exchange
Why You Should Think Twice
Before Investing in a DST
Before Investing in a DST
Investing in a Delaware Statutory Trust (DST) has gained popularity among real estate investors, especially those looking to defer capital gains taxes through a passive 1031 exchange investment. However, despite its allure, there are several reasons why one should exercise caution before committing to this type of investment. A quality 1031 advisor should educate investors on the reasons why one should think twice before investing in a DST, not just the potential benefits.
DISCLOSURE
1031 EXCHANGE RISK: Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts, and certain tax consequences may vary depending on the individual circumstances of each investor. Section 1031 rules that must be carefully followed to qualify for a 1031 exchange. We strongly encourage you to seek guidance from both a qualified intermediary (QI) and a tax professional to navigate his process and ensure compliance with relevant regulations. Please note that RealtyMogul does not provide tax advice.
As part of its 1031 Exchange Concierge services, RM Securities, LLC will provide issuer-prepared materials concerning certain prospective 1031 Exchange products that have not yet been approved by RM Securities, LLC. Any such prospective 1031 Exchange products, and any investment in such products, must be approved by RM Securities, LLC prior to executing any transaction therein. Additionally, any issuer-prepared materials, including issuer offering documents are prepared by the issuer or sponsor of the 1031 Exchange opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for such issuer-prepared materials or any content therein.
As part of its 1031 Exchange Concierge services, RM Securities, LLC will provide issuer-prepared materials concerning certain prospective 1031 Exchange products that have not yet been approved by RM Securities, LLC. Any such prospective 1031 Exchange products, and any investment in such products, must be approved by RM Securities, LLC prior to executing any transaction therein. Additionally, any issuer-prepared materials, including issuer offering documents are prepared by the issuer or sponsor of the 1031 Exchange opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for such issuer-prepared materials or any content therein.