Kay Properties Matt McFarland and Chay Lapin on Diversifying Your Risk Through DSTs

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 Chay Lapin talk about how DSTs can potentially benefit an investor's situation despite the many moving parts of the current economic environment. They also dive into how investors can diversify their risk and potentially protect their wealth.

Key Takeaways:

[0:55] Risks and disclosures.

[3:55] About Kay Properties & Investments.

[4:40] Matt introduces Chay and today's topic.

[5:30] How has the current real estate environment impacted some of the DST trends?

[7:05] Chay provides an overview of the marketplace and the trends he sees.

[10:11] There are opportunities that arise but overall cap rates have gone down.

[11:35] What are some of the challenges that Chay has faced during acquisition and how has it impacted DST investments?

[12:35] Investors are only making 1-2% profit on a cash on cash investments vs. investing on high-risk real estate property at 7% return and unlocking equity.

[15:00] Even though they are low returns, we need to look at the big picture and the tax consequences you might be facing.

[16:15] Chay believes it's time to put ourselves in a defensive position as there are a lot of moving parts in our current economic environments.

[18:25] Prices have skyrocketed but over time there is a potential to raise rents which will offset that.

[19:05] Matt dives more into trapped equity and what it's about.

[22:45] Chay shares an example of how much you can achieve with a $100 rent increase on a unit.

[24:40] He shares more advice for investors within the DST structure.

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.