Thorough due diligence is essential when evaluating a DST investment manager. From understanding background and track record, to reviewing investment thesis, market analysis, and financial model, each helps investors assess whether the investment manager’s strategy aligns with individual investment goals and risk tolerance.

This article explores how a 1031 exchange via a Delaware statutory trust (DST) can meet the needs of several investor profiles. Keep in mind that each investor’s tax situation is different and they should consult their tax advisor.

For accredited investors, mastering the nuances of tax-advantaged real estate investment strategies is key to optimizing wealth-building opportunities. Among the most effective tools are the 1031 and 721 exchanges, each offering significant tax-deferral benefits that can potentially enhance long-term financial growth.

The Qualified Intermediary (QI), sometimes known as an accommodator or facilitator, plays an important part in a 1031 exchange. A 1031 exchange cannot be completed without a QI. So, choosing the right provider is key to executing a successful transaction.

By investing in a Delaware statutory trust, or DST, heirs may receive any distributions paid from the investments. Upon the sale of the property owned by the DST, each heir can choose what to do with their inherited portion. It is possible that one heir continues to exchange the investment, while another can sell and receive cash proceeds.

1031 and 721 exchanges are powerful tax-advantaged tools that may allow for the deferral of capital gains taxes on the sale of real property used for business or investment purposes.