Kay Properties Podcast
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, Vice President Matt McFarland and Senior Vice President Betty Friant talk about the 7 rules around what qualifies as a DST. These rules are often referred to as the 7 deadly sins, and Betty explains why investors tend to get scared around these regulations. She also aims to shed some light on these sins and why you should not be frightened about them.
Key Takeaways:
[1:00] Risks and disclosures.
[4:00] About Kay Properties & Investments.
[4:50] Matt introduces Betty and today's topic.
[6:40] A bit of background on the 7 deadly sins, or rules, around DSTs.
[7:40] Once the DST is closed, you can't make any more contributions. Betty explains why this makes sense.
[10:40] DSTs are restricted from borrowing new funds.
[13:20] DST itself can only invest generated money within the DST. Betty explains what this looks like.
[15:00] You can't reinvest your money back into a deal.
[19:20] The sponsor is not allowed to investigate new tenant contracts.
[20:40] Capital expenditures can only really fall under three categories. Betty breaks this down.
[25:45] The DST is a wonderful gift from the IRS and it allows investors to defer their tax obligations in a smart way.
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.