Investment Opportunities

1031 Exchange/DST Investments

Whenever you sell a business or investment property and you make a profit, you generally have to pay capital gains taxes. A 1031 Exchange allows you to sell your real estate property, reinvest the proceeds in “like-kind” real estate, and defer the payment of taxes on that sale.

1031 Delaware Statutory Trust (DST) Exchange

  • Eligible Assets include real estate held for investment purposes.
  • Rollover principal and capital gains of the real estate sale.
  • Eligible investments include real property without location restrictions.
  • Must identify a replacement property within 45 days and close within 180 days.
  • Capital gains may be deferred indefinitely with a step-up in basis upon death.
  • Maximize after-tax return through income and appreciation.

Delaware Statutory Trusts (DST)


In the majority of cases, 1031 Exchanges are completed by the investment property owner with the help of a real estate broker. However, there is another alternative — a passive solution to satisfying a 1031 Exchange — and that is a Delaware Statutory Trust (DST).

DSTs that are properly structured are recognized by the IRS as qualified replacement property for real property. Investors in a DST are not direct owners of the real estate. The trust holds title to the property, for the benefit of many investors, each of whom has a “beneficial interest” and is treated as owning an undivided fractional interest in the property. 

Simply put, DSTs provide a turn-key solution for investors who may not have the time, energy or real estate expertise to find and/or manage a replacement property. DSTs can be used for all or a portion of the sales proceeds. Also, be mindful that there are fees and expenses associated with a DST.

  • Access to institutional-quality real estate
  • Professional asset and property management
  • Passive ownership
  • Non-recourse institutional financing
  • Lower minimum investments
  • Portfolio diversification
  • Ability to close quickly

What is a qualified intermediary?

A qualified intermediary (QI) must facilitate a 1031 exchange. The QI is a person who holds funds from the relinquished property and uses them to acquire the new replacement property. These funds never come into contact with the property owner who is involved in the 1031, per the IRS 1031 rules.

  • Prepares the legal agreements necessary to properly structure a 1031 exchange.
  • Holds and safeguards your money from the sale of a property (i.e., your 1031 proceeds) until you close on a replacement property.
  • Ensures that your exchange complies with the Internal Revenue Service’s rules.