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 how to navigate a private placement memorandum or PPM. Betty offers smart ways investors can pick apart this document and get a better understanding of what they're signing up for.
Key Takeaways:
[1:00] Risks and disclosures.
[4:20] About Kay Properties & Investments.
[5:00] Matt introduces Betty and today's topic.
[6:00] Private placement memorandum, or PPM, is the official offering document that is compiled and put together for every DST.
[7:25] Betty shares the background of a PPM and how it is compiled.
[9:40] Matt adds that often a PPM is confused with an OM or offer memorandum. He shares what the difference is.
[11:00] Betty breaks down the different pages of a PPM and starts with describing the brochure to start.
[12:05] Betty then moves to the OM and explains more about what these pages have.
[13:45] She also shares that a PPM will contain pictures, maps, and specific information of the property. She lists what this information may include.
[14:40] Next you will find the risk and disclosures and after that will be the fine print.
[16:00] Matt adds that companies also may include investment highlights in the PPM.
[16:55] Betty then describes the fine print pages and what information it will contain.
[17:45] She explains how the table of contents can help you maneuver the PPM.
[19:10] Betty shares that prior performance is also an interesting thing to look up. She explains why.
[20:29] She also talks about the purchase agreement that you will have access to through the PPM prior to signing the document.
[21:15] Betty also talks about the financial forecast and the numbers page of the PPM.
[24:10] Matt gives a final overview of what the PPM should entail.
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.
