Kay Properties Betty Friant and Alex Madden on Debt within DST Investment

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.

Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate, and more.

The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence, and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments

In this week's episode, Senior Vice President Betty Friant and Vice President Alex Madden talk about debt and how it works within the 1031 exchange and DST. Debt can be a tool for investors seeking to potentially grow their portfolio. Investors should also understand the risks and consider alternatives.

Key Takeaways:

[0:50] Risks and disclosures.

[3:25] About Kay Properties & Investments.

[4:30] Betty introduces Alex and today's topic.

[5:15] What is the importance of debt in a 1031?

[5:50] One rule with debt is the requirement to purchase equal or greater value real estate from what has been relinquished. Alex expounds on this further.

[7:45] What is a debt free DST?

[9:10] What are the advantages of owning a property with debt? 

[13:00] Alex also talks about some of the reasons why investors don't want to take on debt.

[15:15] The flexibility surrounding exit strategy is an advantage with DSTs. Alex shares some examples.

[17:20] Betty also mentions cross collateralization and why it could be a disadvantage with debt.

[18:20] How does debt continue with future exchanges?

[20:30] It's important to consider the long-term ramifications before taking on more debt.

[21:40] Alex also shares what are the types of debt free properties in the market now.

[23:10] If Alex was a first time DST investor, would he pick one with or without debt?

[25:00] Betty also talks about doing a trial run DST and how that can be useful to new investors.

Resources

Website: https://www.kpi1031.com/

Call Kay Properties at 855-899-4597

Meet the Kay Properties Team: kpi1031.com/meet-our-team

About Kay Properties and www.kpi1031.com 

Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible.  Please speak with your CPA and attorney for tax and legal advice.