Disclaimer
1031 DST Solutions works with accredited investors and professional advisors including but not limited to attorneys, accountants and qualified intermediaries to help their clients with Delaware Statutory Trust (DST) real estate transactions. Our firm represents some of the largest DST sponsors by offering professionally managed, institutional grade properties, with the added benefit of being able to replace debt on a non-recourse basis. Interests in these properties may qualify as a "Like Kind" exchange.
For more information, please contact 1031 DST Solutions at: 914-299-1302
email: mike1031dstsolutions@outlook.com 1031dstexchangesolutions.com
Securities offered through 1031 Securities Inc., member FINRA/SIPC.
General Real Estate Risk
All forms of real estate investing are speculative and involve a high degree of risk. Investors should be able to bear the complete loss of an investment. All real estate is generally subject to the risks of increased and ongoing vacancy, problematic tenants, economic downturns, physical damage or loss, unexpected repairs and maintenance, eminent domain, negative rezoning, blight, environmental damage and liability, and overall valuation fluctuations that may be outside of the owner’s control.
Specific 1031 Exchange Risks
1031 Exchanges are highly complex and failure to comply with the stringent requirements may result in a complete loss of the desired tax deferral. Investors should carefully consult with independent tax and legal counsel prior to initiating, and while performing, a tax-deferred exchange.
There are numerous section 1031 rules and requirements including, but not limited to: seller cannot receive or control the net sales proceeds, replacement property must be like-kind to the relinquished property, the original replacement property must be identified within 45 days from the sale of the property, the replacement property must be acquired within 180 days from the sale of the original property, and the debt placed or assumed on the replacement property must be equal or greater than the debt encumbering the relinquished property.
Illiquidity
There is no significantly established secondary market for syndicated, fractionalized TIC and DST ownership interests. The transfer of these interests may also be legally restricted. Investors should carefully consider both their ongoing liquidity needs and estate planning goals prior to investing in such an interest.
Limited Diversification
Most offerings are for ownership interests in a single property, and any desired diversification must be achieved with other real estate investments.
No Guarantee of Performance
1031 Securities Inc. it's affiliates does not guarantee ongoing distributions or overall investment performance.
Sponsor-Related Fees
Investment Sponsors and thier affiliates will collect significant fees related to the acquisition, syndication, ongoing management, and eventual disposition of any real estate offerings. These fees could materially impact the performance of an investment and should be carefully considered prior to any such investment.
Leverage-Related Volatility
The use of leverage in real estate investments may increase volatility and the overall risk of loss.
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Disclaimer
The information contained herein is neither an offer to sell nor a solicitation of an offer to buy securities.
Do not construe the contents and discussion herein as legal, tax or accounting advice. The information contained herein is believed to be accurate, however, no such warranties, representations, or guarantees are provided to that effect, either expressly or implicitly. Further, the information contained herein is intended only to provide a high level overview and not an exhaustive explanation of the rules, regulations, exceptions, etc. generally applicable to a like-kind exchange pursuant to Internal Revenue Code Section 1031. The discussions and examples contained herein are based on law presently in effect and certain proposed Treasury Regulations. Nonetheless, readers should be aware that new administrative, legislative or judicial action could significantly change the information contained herein. Transactions involving Internal Revenue Code Section 1031 are highly complex, and it is strongly recommended that investors seek competent, independent tax and legal counsel prior to initiating, and while performing, such a tax deferred exchange.
Securities, such as the DSTs mentioned herein, have not been and will not be registered under the Securities Act of 1933 or applicable state securities laws, nor has the Securities and Exchange Commission or any state regulatory authority passed upon or endorsed the merits of the disclosure herein. In making a decision investors must rely on their own examination of the transaction and its terms, including the merits and risks involved. There can be no guarantee that the methods described herein will suit your individual needs or that the rules governing such methods will not change over time.
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