Insights Blog
The Benefits of Passive Income through DST Investments
Unlocking Financial Freedom with DST Investments
Passive Income through Delaware Statutory Trusts (DSTs) offer a unique opportunity for investors seeking passive income. By investing in DST properties, individuals can potentially generate steady revenue without the hassles of active management. This hands-off approach allows investors to enjoy the benefits of real estate ownership while professionals handle the day-to-day operations.
Steady Passive Income Stream
One of the primary advantages of Passive Income through DST Investments is that investors receive regular distributions from the rental income generated by the property. This predictable cash flow can be a significant financial boon, especially for those looking to supplement their income during retirement or achieve financial stability.
Professional Management for Peace of Mind
DST investments are managed by experienced real estate professionals. These managers handle everything from property maintenance to tenant relations, ensuring the property remains in top condition and occupancy rates stay high. Investors can relax, knowing their investment is in capable hands and is poised to generate income without their direct involvement.
Diversification of Investment Portfolio
Investing in DSTs allows for diversification within an investment portfolio. DSTs can include various asset types, such as multifamily units, office buildings, retail centers, and industrial properties. This diversification reduces risk, as the performance of one property type may offset the downturns in another, providing a more stable overall return.
Tax Benefits and Deferrals
DST investments offer significant tax advantages. By utilizing a 1031 exchange, investors can defer capital gains taxes on the sale of a property by reinvesting the proceeds into a DST. This deferral strategy helps maximize the amount of capital working for the investor, increasing potential returns over time.
Access to High-Quality Real Estate
DSTs give individual investors access to institutional-quality real estate that might otherwise be out of reach. These properties are typically well-located and professionally managed, ensuring they remain attractive to tenants and maintain their value. This access to high-quality real estate can enhance an investor’s portfolio and lead to better long-term returns.
Hassle-Free Real Estate Ownership
Owning real estate traditionally involves significant responsibilities, from property maintenance to tenant management. DST investments eliminate these hassles, as professional managers handle all operational aspects. This hassle-free ownership allows investors to reap the rewards of real estate investment without the time and stress typically associated with it.
Potential for Appreciation
While the primary benefit of DST investments is the steady income stream, there is also potential for property appreciation. Over time, as property values increase, the value of the DST may also rise. This appreciation can provide additional financial gains when the property is eventually sold.
The Perch Way
Investing in DSTs provides numerous benefits, from generating steady passive income to enjoying professional management and significant tax advantages. The ability to diversify an investment portfolio with high-quality real estate, coupled with the potential for appreciation, makes DST investments an attractive option for those seeking financial freedom. By leveraging the expertise of professional managers and the tax deferral opportunities of a 1031 exchange, investors may achieve stable, hassle-free returns and build long-term wealth.
1031 Risk Disclosure:
- There is no guarantee that any strategy will be successful or achieve investment objectives;
- Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
- Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
- Potential for foreclosure – All financed real estate investments have potential for foreclosure;
- Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
- Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
- Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits
General Disclosure
Not an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only. Securities offered through Arkadios Capital, member FINRA/SIPC. Advisory Services offered through Arkadios Wealth. Perch Wealth and Arkadios are not affiliated through any ownership.
Ben Carmona
Perch Wealth provides you with access to institutional-quality real estate, management, financing and state of the art 1031 exchange processing.
855-DST-3443
in**@Pe*********.com
29122 Rancho Viejo Road
Suite 111
San Juan Capistrano,
California 92675
Not an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only. Securities offered through Arkadios Capital, member FINRA/SIPC. Advisory Services offered through Arkadios Wealth. Perch Wealth and Arkadios are not affiliated through any ownership.
Check the background of this firm/advisor on FINRA’s BrokerCheck. 
© 2023 Perch Wealth.
- There’s no guarantee any strategy will be successful or achieve investment objectives;
- All real estate investments have the potential to lose value during the life of the investments;
- The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
- All financed real estate investments have potential for foreclosure;
- These 1031 exchanges are offered through private placement offerings and are illiquid securities. There is no secondary market for these investments;
- If a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
- Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits;
- Tax benefits are not guaranteed and are subject to changes in the tax code.