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A Step-by-Step Guide to Using the RealtyMogul Platform

Joint Venture Equity from Start to Close. Step by Step. How it Works.

It can be argued that there has never been a time in history when the 1031 exchange has been more critical to preserving wealth for property owners than today. The US has experienced tremendous capital growth, and real estate owners are now sitting on an unprecedented amount of equity. Additionally, landlords in major growth areas like California are potentially feeling the squeeze of state and local regulations as they look to exit for more landlord-friendly states.

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.

Many investors are drawn to net lease real estate assets due to their allure of predictable income and minimal management requirements. When thinking of net lease properties, one might envision Walgreens, FedEx distribution centers, Amazon fulfillment centers, Chipotle restaurants, Albertson grocery stores, or other large, single-tenant commercial buildings. These properties are often referred to as NNN (Triple Net) properties, where the tenant is responsible for insurance, maintenance, and property taxes, theoretically offering a “hands-off” investment opportunity.

The 1031 process maintains stringent IRS requirements and tight deadlines that can be overwhelming and confusing. It is common for investors to become so focused on finding and closing on a replacement property that they overlook the details of how to identify with their Qualified Intermediary (QI). These mistakes can appear small but may result in huge consequences. Proper planning and proactive communication are key to avoiding common pitfalls and ensuring a smooth transaction.