With your wise decision to own real estate, you're already far ahead fo the average investor. But management intensive properties and dwindling returns have many investors singing the blues.
Tenants, toilets, and trash are the bane of many property owners. Daily headaches, lack of time, freedom, and lower monthly cash flows might tempt you to sell. But simply selling isn't your only option. Keeping real estate in your investment portfolio is important to you, and selling a highly appreciated asset could result in significant capital gains taxes.
A 1031 exchange may allow you to defer gains from the sale of real property to a more opportune time. You may be able to diversify your portfolio by geography, type of investment, and industry while still matching debt/equity requirements of the code by exchanging into a professionally managed Delaware Statutory Trust property. With a DST 1031 Exchange, you receive passive income without management responsibility, that's retirement.
Some benefits of a DST 1031 Exchange include, but are not limited to:
Sufficient inventory may allow for ease in meeting 45-day and 180-day exchange deadlines.
Turnkey Purchases where financing and property/asset management are in place.
No day-to-day hands-on management. No more toilets, tenants, and trash.
National locations and lower investments minimums means geographic and product diversification.
Ability to completely or partially defer taxes on your investment real estate. (Consult with your tax professional.)
Greater Disclosure requirements than needed in traditional real estate investments.
1Income is not guaranteed. 2Continued ability for deferral is based on the Internal Revenue Code and applicable Revenue Rulings and Revenue Procedures as written. Future changes in the code may impede the ability for later exchanges. Consult with a tax advisor on any applicable changes to the code