Delaware Statutory Trusts
AN ALTERNATIVE SOLUTION TO REAL ESTATE INVESTING
Investing in DSTs with Perch Wealth
Perch Wealth offers a diversified portfolio of investment opportunities. Our experience and expertise in Delaware Statutory Trusts allow us to match clients with investment solutions that target their long-term goals. We personalize every strategy based on our client’s investment preferences regarding location and property type. We have access to several different types of like-kind investment properties across the United States. As a licensed representative, we have the resources to help diversify your portfolio and assist you in becoming a fractional owner in the DST of your choice.
$5.04B
EQUITY PLACED 2023
$5.1B
EQUITY EXPECTED 2024
What is a Delaware Statutory Trust (DST)?
A Delaware Statutory Trust, or DST, is a legally recognized real estate investment trust in which investors can purchase ownership interest. Investors who own fractional ownership are known as beneficiaries of the trust – they are considered passive investors.
DSTs, unlike many other co-ownership real estate investment structures, are 1031-eligible. Properties held in DSTs that are considered “like-kind” include retail assets, multifamily properties, self-storage facilities, medical offices, and other types of commercial real estate.
Why consider investing in Delaware Statutory Trusts?
1031 Exchange Qualifier
With a Delaware Statutory Trust as a 1031 replacement property, you select the exact undivided interest that meets the financial requirements of your exchange.
Deferred Capital Gains
As a 1031 qualifier, a DST can be used by investors to transfer their investment capital while deferring the payment of capital gains on their initial investment.
Institutional Quality Properties
Investing in a DST offers investors access to institutional quality assets, which often have the potential to deliver higher returns.
Diversification
The selection of property types and geographical locations opens a whole new level of portfolio diversification.
Passive Income Potential
Investors have the possibility of receiving monthly returns, offering a chance for stable cash flow through the life of their investment. Returns can fluctuate based on market conditions.
Management Free
All Delaware Statutory Trust properties are professionally managed for you. Investors take on no additional responsibility when they invest in a DST.
Limited Liability
A DST is structured so that investors are protected from personal liabilities beyond the amount of their investment.
Excellent Financing
DST sponsors are established investment real estate firms with strong lender relationships, allowing them to obtain very favorable terms for their clients.
Debt Obligation Management
When exchanging into a DST, you determine how much you want to invest and how much debt you want the DST sponsor to assign to you.
1031 In and Out
Since the IRS qualifies DSTs for 1031 exchange purposes, you can exchange out of it when it comes time to sell, and you’ll keep deferring taxes.
Estate Planning
DSTs offer investors unique strategies for estate planning. Upon the investor’s death, estate beneficiaries receive a stepped-up basis for tax purposes.
Perch Wealth Experience
The Perch Wealth team has successfully guided hundreds of clients in their investment strategies. Read our “Case Study” to learn how we can help diversify your portfolio.
1031 Exchange Resources
DSTs enable investors to benefit from a 1031 exchange according to Section 1031 of the Internal Revenue Code.
A 1031 exchange is a trade-off in real estate ownership that allows investors to defer capital gains taxes. Section 1031 requires investors to follow a strict timeline when leveraging this opportunity.
Unfortunately, successfully locating and identifying suitable replacement property (or properties) within the 45-day identification window is one of the most challenging issues with a 1031 like-kind exchange.
With our professional guidance, library of resources, and access to properties available nationwide, Perch Wealth might be the solution for your successful 1031 exchange.