TAKE CHARGE OF YOUR PERSONAL ECONOMY
1031 EXCHANGE & dst
REIT’s traditionally are thought of as a good investment for diversifying assets. Modern portfolio theory advocates diversification to minimize overall risk. In other words, investors should allocate their portfolios among a variety of investments in order to weather different market conditions. It is believed that such a diversified portfolio may limit overall portfolio volatility or “risk.”
A DST is a separate legal entity created as a trust under Delaware statutory law. The law permits a very flexible approach to the design and operations of a DST. However, to use a DST in a Section 1031 syndication program, it must comply with the requirements of IRS Revenue Ruling 2004-86 and must also (if theDST’s property is debt-financed) meet lender requirements:
- be a Special Purpose Entity (“SPE”);
- be bankruptcy remote; and
- be a very passive holder of real estate, with minimal trustee powers over the operation of the DST’s real estate, and no powers over the DST or its real estate at all in the hands of the DST’s beneficiaries.
“Don Meredith is a pleasure to deal with. He is honest, kind and very knowledgeable. The DST is the best investment I have ever made. The payments come in like clockwork, and it’s great to make money to live on without touching my principal investment.”
“These testimonials may not be representative of the experience of other clients. Past performance does not guarantee or indicate the likelihood of future results. These clients were not compensated for their testimonials.”
"THE MATERIAL CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER TO BUY OR SELL ANY REAL ESTATE, SECURITIES, OR INSURANCE. SUCH OFFERS ARE MADE ONLY BY A SPONSOR’S MEMORANDUM OR PROSPECTUS OR CONTRACT WHICH SHOULD BE READ AND UNDERSTOOD BEFORE INVESTING AS WITH ANY REAL ESTATE INVESTMENT THERE ARE VARIOUS RISKS, INCLUDING BUT NOT LIMITED TO: ILLIQUIDITY, LIMITED TRANSFERABILITY, AND VARIATION IN OCCUPANCY WHICH MAY NEGATIVELY IMPACT CASH FLOW, AND EVEN CAUSE A LOSS OF PRINCIPAL. THERE ARE MATERIAL RISKS ASSOCIATED WITH THE OWNERSHIP OF INVESTMENTS. SOME INVESTMENTS ARE ONLY AVAILABLE TO SUITABLE ACCREDITED INVESTORS."