Structure of a DST
RealtyMogul Vice President Stephen Haskell walks you through the “Structure of a DST” detailing what property managers can and cannot do in a DST, the pros and cons of a DST., and IRS restrictions regarding DSTs.
Interested in learning more? Please contact our team of 1031 specialists.
Interested in learning more? Please contact our team of 1031 specialists.
Accreditation and
Liquidity
Liquidity
Accreditation and
Liquidity
Liquidity
Learn the questions to ask to understand if you are an accredited investor, and better understand the liquidity of a DST.
The Seven Deadly
Sins of a DST
Sins of a DST
The Seven Deadly
Sins of a DST
Sins of a DST
Understand what property management can and cannot do in a DST.
Master Tenant Lease
Structure
Structure
Master Tenant Lease
Structure
Structure
Understand the DSTs master tenant lease structure, why it’s important, and what it means for investors
The Springing LLC
Feature
Feature
The Springing LLC
Feature
Feature
The DST’s “break glass in case of emergency,” and its potential consequences
Explore articles on the Structure of a DST
1031 Exchange
A Critical Review of the Seven Deadly
Sins of a Delaware Statutory Trust (DST)
Sins of a Delaware Statutory Trust (DST)
The concept of the “Seven Deadly Sins” of a Delaware Statutory Trust (DST) refers to specific activities that a DST sponsor must avoid to maintain the trust’s tax-advantaged status under IRS Revenue Ruling 2004-86. These restrictions are crucial for ensuring the DST qualifies for 1031 exchange purposes. In some ways, these rules force sponsor transparency and limit the opportunity for a sponsor to mismanage an asset. However, it can also be restrictive, limit upside potential, and pose challenges for certain investments. Below is a critical examination of these seven prohibitions:
1031 Exchange
TIC or DST
When comparing investment structures like Delaware Statutory Trusts (DSTs) and Tenancy-in-Common (TICs), it’s crucial to examine several key factors, including liquidity, certainty of close, tax reporting, financing structure, and associated costs and fees. Both DSTs and TICs allow multiple investors to own fractional interests in larger properties, yet they differ significantly in how they handle these aspects. Understanding these differences can help investors make informed decisions about which structure best suits their investment goals and risk tolerance.
1031 Exchange
Question to Ask
If DSTs Are Right For You
If DSTs Are Right For You
Navigating the array of opportunities available to 1031 investors can be overwhelming. Determining the most suitable investment option requires careful consideration and thorough evaluation. Among these options, the Delaware Statutory Trust (DST) has emerged as a favored choice for many investors who meet specific criteria.
1031 Exchange
Understanding DSTs, TICs
and U.S. Code § 1031
and U.S. Code § 1031
We explore 1031 Exchange vehicles such as Delaware Statutory Trusts (DSTs) and Tenancy-In-Common (TICs), discuss important considerations for DSTs, and the tax benefits that 1031 exchanges can have for commercial real estate investors.
1031 Exchange
How 1031 Investors Could Benefit From Opportunity Zone Investments
Opportunity Zone investments could serve as a viable alternative for 1031 investors seeking to defer paying capital gains taxes.
1031 Exchange
What Is a 1031 Exchange and Why Is It Important?
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.
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.