Why Invest in a DST?
NO MANAGEMENT RESPONSIBILITIES
The DST is the single owner and agile decision maker
on behalf of investors.
ACCESS TO INSTITUTIONAL-QUALITY
Most real estate investors can’t afford to own multimillion dollar properties. DSTs allow investors to
acquire partial ownership in properties that otherwise
would be out-of-reach.
LIMITED PERSONAL LIABILITY
Loans are nonrecourse to the investor. The DST is the
LOWER MINIMUM INVESTMENTS
DSTs can accommodate much lower minimum
investments, whereas 1031 exchange minimums
often are $100,000.
Investors can divide their investment among multiple
DSTs, which may provide for a more diversified real
estate portfolio across geography and property types.
All 1031 exchange investments receive a step-up in
cost basis so your heirs will not inherit capital gain
liabilities, and provides them with professional real
estate management versus the burden of hands-on
If for some reason the investor can’t acquire the
original property they identified, a secondary DST
option allows them to meet the exchange deadlines
and defer the capital gains tax.
Any remaining profit on the sale of your relinquished
property is considered “boot.” This remaining money
becomes taxable unless you eliminate it. The excess
cash (boot) can be invested in a DST to avoid
SWAP UNTIL YOU DROP
The DST structure allows the investor to continue to
exchange real properties over and over again until the
Please consult your tax advisor and/or your attorney before considering investing in any DST or other tax related investment. Willow Cove Investment Group, Inc. does not review or comment or approve the use of any investment for tax purposes. Tax related investments must be made with consultation with a tax specialist or attorney outside of Willow Cove Investment Group, Inc. or any of its Registered Representatives