DST Educational Series A- Part 1: Depth & Breadth of Knowledge for Investors about Delaware Statutory Trust (DST)

Welcome DST News! Our goal is to provide non-biased education and market information for Accredited Investors on DSTs.

By: Al DiNi­co­la, AIF

Part 1: Intro­duc­tion.

Real estate Invest­ing has pro­vid­ed many advan­tages for investors.  For some investors access to debt may be lim­it­ed thus lim­it­ing the size of the invest­ment. Using debt or lever­age may have increased risk (default or fore­clo­sure) but has proven to increase poten­tial returns. When you com­bined the real estate acqui­si­tion with tax advan­tages such defer­ring cap­i­tal gains and depre­ci­a­tion on the struc­ture (land not depre­cia­ble) the 1031 tax deferred exchange (like-kind exchanges), have pro­vid­ed a wealth build­ing tool for investors.

There is a very defined set of rules that may be com­pli­cat­ed. The rules are at times con­fus­ing even for expe­ri­enced investors. The best advice for investors seek­ing to uti­lize a strat­e­gy that uti­lizes the IRS code is to seek a com­pe­tent tax pro­fes­sion­al or account­ing pro­fes­sion­al. Sec­tion 1031 of the IRS code has been around for about a hun­dred years. Uti­liz­ing a DST to suc­cess­ful­ly per­form an exchange does com­ply with the require­ments and intri­ca­cies of the IRS code.

The scope of the infor­ma­tion pro­vid­ed here may serve as a dive into the advan­tages and poten­tial draw­backs of Delaware Statu­to­ry Trusts. This invest­ment strat­e­gy may help man­age and defer tax lia­bil­i­ties and pur­chase inter­ests (frac­tion­al inter­est) in com­mer­cial-grade real estate. In most cas­es these acqui­si­tions would sim­ply be out­side many investors’ capac­i­ties.

Look for Part 2: Delaware Statu­to­ry Trust- What is it and why you should or may con­sid­er.

DST’s (Delaware Statu­to­ry Trusts) are for accred­it­ed investors only.  Con­tact your invest­ment advis­er for addi­tion­al details on how a DST may be a solu­tion to your 1031 Exchange and com­pli­ment your finan­cial objec­tives. For more infor­ma­tion on how to prop­er­ly set up an IRC 1031Tax Deferred Exchange or if you are an accred­it­ed investor and would like addi­tion­al infor­ma­tion on a DST con­tact Al DiNi­co­la at 239–691-8098 or email adinicola@namcoa.com. This is not an offer to pur­chase or solic­i­ta­tion to pur­chase any secu­ri­ty, as such be made only through an offer­ing mem­o­ran­dum or prospec­tus.  Invest­ing in secu­ri­ties, real estate, or any invest­ment, in any form, involves risk, includ­ing but not lim­it­ed to the poten­tial of los­ing some or all of your invest­ment dol­lars when you invest in secu­ri­ties. You should review any planned finan­cial trans­ac­tions that may have tax or legal impli­ca­tions with your per­son­al tax or legal advi­sor.   NAMCOA, LLC is a Reg­is­tered Invest­ment Advi­sor, reg­u­lat­ed by SEC (Secu­ri­ties and Exchange Com­mis­sion). Our cor­po­rate office is locat­ed at 999 Van­der­bilt Beach Road, Suite 200, Naples Flori­da 34108. Secu­ri­ties Offered through MSC-BD, LLC, Mem­ber of FINRA/SIPC. 410 Peachtree Park­way Suite 4245, Cum­ming, GA 30041. MSC-BD, LLC and NAMCOA are inde­pen­dent­ly owned and are not affil­i­at­ed.