All Forum Posts by: Dylan Speer

Have you considered 1031 exchanging into a DST? Or other syndications? Those will remove the competition and provide consistent cash flow and growth.

Hey Brandon, 

Generally, yes. Are you tenants in common with the other partners in the property?

About exchanging - Have you considered DSTs? Delaware Statutory Trusts are 1031-exchangeable syndications that are generally only open to accredited investors. I actually work at a real estate firm that specializes in helping clients exchange into these DSTs so your question is quite familiar. 

Should you wish to exchange our of this industrial building and go into another, there are plenty of DSTs that acquire industrial buildings and open interests to limited partners/investors. 

Feel free to reach out to me if this sounds relevant to you, I'd be happy to discuss. 

Best of luck with the sale. 

We see purchase prices that result in debt service payments far higher than what's realistic in rent. I do not see cash flow here for the most part. 

 I think if we get 25 bp that shows tremendous FED confidence in their ability to both continue on a disinflationary path while maintaining relatively low unemployment and I think equities may actually like that a lot.

Hey Wendy,

It's hard to say what you should do since a lot can factor into a decision like that. What I will say is that you can always consider a 1031 exchange into a passive income play like a DST (Delaware Statutory Trust). These are 1031-exchangeable syndications that are only opened to accredited investors. DSTs are funds put together by a sponsor (finder of the deal, the party that acquires the property in the DST and opens some equity to investors).

An example of a DST is a student housing building at the University of Alabama, let's say. The sponsor will acquire the asset with leverage, say 50%. Now, investors who just sold property and have a similar debt to equity ratio from the sale of their property can invest in this DST and replace both their equity and debt. The cool part about a DST is that the sponsor takes on the debt and the investors just benefit from it for the sake of their exchange. The investors do not take on debt on their balance sheet and are not responsible for repayment on the debt should the investment go south. 

These funds usually pay anywhere from a 3-6% annualized cash on cash return (cash flow), and have anywhere from 5-15% appreciation when the fund sells the asset they hold (anywhere from 5-10 years down the line). The investor can then 1031 exchange into the next DST and continue to earn passive cash flow from being a partial owner in an institutional real estate asset like a large class A multifamily building, a self storage complex, or a large triple net industrial building.

Often times, investors find that their passive DST investments out-perform their former actively managed properties. Feel free to reach out if you'd like to hear more about DSTs. I work at a firm that specializes in helping clients exchange into DSTs and other syndications. Thanks.

Hey James, 

Have you considered exchanging into a DST? A Delaware Statutory Trust is an exchangeable syndication and here you can invest in any property type. I work for a real estate investment advisory firm that specializes in helping rental property owners 1031 exchange into DSTs. The cash flow usually beats what investors can get on their own. Feel free to reach out.

Hey Nick,

Short answer is yes. Are you interested in 1031 exchanging into DSTs? This stands for Delaware Statutory Trust. These are exchangeable syndications only opened to accredited investors. For example, if you have a million dollar property and 500k of debt, your debt to equity is 0.5, so you'd need to exchange into something with the same ratio. 

A DST that is levered 50% would satisfy this debt requirement, and the cool part is DST debt is in the name of the sponsor and not the investor, so by investing in a DST, even though you're keeping a 0.5 debt to equity ratio, you are not taking more debt onto your balance sheet by investing in a levered fund.

An example of a DST is owning part of a student housing building at the University of Alabama, for example. The hold period may be 4-7 years with monthly cash distributions with some appreciation at the sale of the asset.

I work at a firm that specializes in helping clients invest in DSTs. Feel free to reach out if you'd like to hear more. 

I'd consider putting cash into an alternative investment (syndication) or a gas and mineral rights royalty fund for cash flow.

My firm specializes in these types of funds and helping clients invest in them. Feel free to reach out with any questions. 

Hey Diego,

I'd call a lender and ask them what you need to do to get a loan from them. Ask for their lending requirements. They'll be happy to help for the potential business you may bring them. I'd also call a realtor in your area and ask to set up a time to chat on the phone. 

Hey Rodney,

In terms of safety, I believe the least risky way to own more real estate is to invest in DSTs (1031-exchangeable syndications) or alts (normal, non-exchangeable syndications). 

I work at a real estate investment advisory company that helps clients invest in syndications that are only open to accredited investors. That being said, I see a high number of rental properties with lumpy cash flow and tenant turnovers. In the institutional real estate syndications that hold larger properties - Student housing, industrial, 300+ unit class-A multifamily, there is very consistent cash flow and appreciation without lumpy periods of CF and tenant turnover.

I'm happy to talk syndications with you. Feel free to reach out.