All Forum Posts by: Kyle Winther

You can do a 1031 exchange into a leveraged DST and pickup debt in your exchange to eliminate the boot in your transaction. There are plenty of leveraged DST portfolios available.

There are requirements to invest into a DST, require you to be an accredited investor. Do you qualify as an accredited investor?

The 721 UPIRET is a great product out there from the Worlds largest privately own real estate companies. One of the most amazing benefits is the ability to pull out your basis tax free once in the REIT. This is accomplished because once you are in the REIT you are considered in a partnership and you get aK-1. The IRS recognizes partnerships under the FIFO accounting method, and allow you to pull out your basis first.

If you sell a $2m property and have a $1m basis, you can pull the $1m basis out of the liquid REIT tax free.

I have been placing a lot of my clients into the 721 UPREIT.  

Zasa,

I am a financial advisor that has been specializing in DST's since 2018. We work with the top DST sponsors in the industry and can help guide you with your transaction. We also offer a 721 UPREIT with the ability to pull out the basis of your relinquished property tax free.

We also have a tax division and have been handling our clients DST tax returns since 2018 as well. We have CPA's who specialize in the 1031 exchange transaction.

Feel free to reach out if you have any quesitons.  

Yes, as a general rule, a well-structured DST should provide full transparency in its financials, including Master Lease Payments. Since the Master Lease is a key operating expense, it should typically be reflected in the proforma cash flow statement. If it's not disclosed, it's worth asking the sponsor for clarification, as omitting it could impact the accuracy of projected returns and lender evaluations.

Be care when they try and offer a no load fee. The RIA fee is 1% per year, and is deducted from your equity yearly, thus reducing your income. It can help when it comes to the appreciation potential. Those who are looking for the cash flow should pay the front end load. 

Sorry to hear about your bad experience. Choosing is quality DST sponsor with a strong track record is essential when making a large financial tax deferred decision.

So sad to see this happening to real estate investors looking for quality companies with passive income that should last. This is why it is critical to choose a quality DST sponsor with a strong track record.

The accelerated depreciation benefits can help offset the income you receive from the DST. There are a lot of factors to consider when investigating a DST. You should always heed the advice of your CPA for tax projections and depreciation befits for your current tax bracket and situation.

Dont forget to mention you can do a 1031 exchange into a Delaware Statutory Trust (DST)

Great article discussing the benefits of the Delaware Statutory Trust in a 1031 exchange. Well written and great advice!