Welcome to DST Essentials with Kay Properties & Investments your go-to resource for in-depth education on Delaware Statutory Trusts (DSTs) and 1031 exchanges. In this episode, Senior Vice President Orrin Barrow and Senior Vice President Matt McFarland discuss the concept of Risk Awareness within Delaware Statutory Trust investments. They explain why certain DST offerings may receive a Risk Awareness designation, explore several factors that may warrant additional due diligence, and discuss how understanding these considerations may help investors evaluate potential 1031 exchange investment opportunities.
Whether you're evaluating your first Delaware Statutory Trust investment or reviewing multiple DST offerings as part of a 1031 exchange, this educational discussion covers important topics related to debt structure, sponsor experience, asset classes, exit strategies, tenant credit quality, and portfolio diversification.
In This Episode, We Cover:
• What the Risk Awareness designation means for certain Delaware Statutory Trust (DST) offerings
• How debt structure—including loan term, fixed-rate versus variable-rate financing, and CMBS loans—may influence investment considerations
• Why sponsor company experience and operating track record are important components of the due diligence process
• How leasehold ownership structures and property tax abatements may impact long-term investment considerations
• Differences between optional and forced 721 UPREIT exit strategies and why investor optionality may be an important consideration
• Why certain asset classes—including student housing, hotels, assisted living, and other operationally intensive properties—may involve additional considerations
• How market location, economic diversification, and local employment drivers may influence commercial real estate investments
• Why tenant credit quality may be an important consideration for certain single-tenant commercial real estate investments
• The role diversification and due diligence may play when evaluating Delaware Statutory Trust investment opportunities
• Why understanding investment risks before completing a 1031 exchange may help investors make more informed decisions
Why Kay Properties & Investments?
With nearly two decades of experience, Kay Properties has helped over 4,000 investors complete more than 9,000 DST, 1031 exchange, and 721 UPREIT transactions. Our platform at www.kpi1031.com provides accredited investors with access to offerings from over 25 DST sponsor companies, with approximately 25 to 50 DST investments available at any given time. Every offering available through our platform undergoes an in-house due diligence review. We provide accredited investors with access to a broad selection of Delaware Statutory Trust offerings from multiple sponsor companies.
Key Topics & Keywords: DST 1031 exchange, Delaware Statutory Trust, Risk Awareness, 1031 exchange risk, DST due diligence, debt structure, fixed-rate financing, CMBS loans, sponsor experience, 721 UPREIT, leasehold ownership, tax abatements, tenant credit quality, portfolio diversification, passive real estate investing, commercial real estate, accredited investors, replacement property, KPI1031.com
Resources Mentioned: Free DST 1031 Exchange Investor Resources – Visit www.kpi1031.com for instant access to: • The DST 1031 Exchange Book by Dwight Kay • The first-ever 721 UPREIT Book • Delaware Statutory Trust catalog • Investor case studies and educational webinars
Connect with Our Team: Call us at (855) 899-4597 to speak with a DST specialist about your 1031 exchange and investment goals, or email us at info@kpi1031.com
To learn more about Delaware Statutory Trusts visit: https://www.kpi1031.com/resources/
All DST properties shown are Regulation D Rule 506(c) offerings and are subject to availability. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million exclusive of primary residence, and/or possessing an annual income of over $200,000, or $300,000 with a spouse and expecting the same or greater for the current year) and accredited entities (generally described as an entity owned entirely by accredited investors and/or owning investments in excess of $5 million). Please consult with a qualified CPA or attorney to determine if you are accredited. This material is provided for educational purposes only and should not be considered tax, legal, or investment advice. All real estate investments, including Delaware Statutory Trust investments, involve risk, including the potential loss of principal. Past performance does not guarantee or indicate the likelihood of future results. Diversification does not guarantee returns or protect against loss. Securities offered through FNEX Capital LLC, member FINRA, SIPC.
