A lot of people are asking about replacement property investments that are more securitized in nature – passive, management-free investments that you can exchange into, not with your real estate agent but with a financial planner. These products are often referred to as DSTs (Delaware Statutory Trusts). These investments are very attractive because they allow you to redeploy all of your equity into a passive, management-free investment that’s designed for wealth preservation and to derive a steady stream of income as you age.
Further, some of these investments have unique features. One has a refinance feature that allows you to extract 85% of your equity 35 days after getting into the DST. This allows you to lock in the tax deferral by acquiring these securities of equivalent value. Then later in a separate transaction, you borrow out 85% of your equity – allowing you access to your excess capital to do other things such as buy other real estate or pay off debt.
Find Out if a 1031 Exchange is Right for You
Find out if a 1031 exchange is right for you by talking with one of the qualified intermediaries at CPEC1031, LLC. Our team of skilled 1031 exchange professionals is available to help you through the entire like-kind exchange process from start to finish. Take the first step in the 1031 exchange process by contacting an intermediary at CPEC1031, LLC. Our office is located in downtown Minneapolis but we work with clients throughout the state of Minnesota as well as the entire country.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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