Purchasing 1031 exchange replacement properties in the form of Delaware Statutory Trust (DST) is a popular option for many investors.

There are a number of potential Delware Statutory Trusts Benefits. As a real estate investor, reviewing the potential benefits and potential risks prior detail prior to investing.

Potential Advantages of Delaware Statutory Trusts

Delaware Statutory Trusts are attractive for the following reasons:

Diversification

Investors can select multiple Delaware Statutory Trust properties as part of their 1031 exchange allowing diversification of asset classes, cities and level of needed non-recourse debt.

Lower Minimum Investments

Delaware Statutory Trusts have lower minimum investments often as low as $100,000 of equity. If you require a lower investment amount than the stated minimum, let your Corcapa 1031 Exchange representative know and we may be able to negotiate a reduction in certain circumstances.

No Individual Annual LLC Filings

Potentially lower fees in Delaware Statutory Trust investments than Tenants-in-Common investments. The DST investment does not require a special purpose LLC entity that needed to be annually maintained and paid for.

Potentially Greater Cash Flow

The most common reason that investors select Delaware Statutory Trusts is for a potentially greater cash flow than they are currently receiving. Most DSTs have between a 4.00% – 5.50% projected cash flow based on the anticipated rental income less expenses. For example, if you invest $1,000,000 of equity into a DST with a 4.5% projected cash flow, this would provide a projected net annual income of $45,000. This could be a higher net cash flow than you are currently receiving on your rental property. As with all real estate, the income cannot be guaranteed because the rental income and expenses can increase or decrease unexpectedly.

Non-Recourse Loans

Virtually all the loans within the DSTs that are approved by DAI Securities, LLC are non-recourse which means the investor does not personally guarantee them.

Financing Access

Easier access to financing for investors needing debt on their replacement property and potentially quicker closings.

Larger Property Access

Access to Institutional Grade properties which are typically larger commercial properties that previously required significant capital to purchase.

Questions about Delaware Statutory Trusts?

For more information and experienced guidance about Delaware Statutory Trust investments, contact the professionals at Corcapa 1031 Advisors.

Request 1031 Exchange DST Property Listings

Please complete the information below to register for access to current 1031 exchange replacement offerings.

We respect your privacy. We Promise To Not Sell Your Information Ever.

"*" indicates required fields

Name*
Please Confirm You Are An Accredited Investor*

An accredited investor is an individual with a net worth of at least $1,000,000 (excluding the equity in your home) OR net income the last two years of $200,000 or greater ($300,000 if joint income with spouse) with an expectation of equal or greater earnings in the current year.