If you have been interested in investments, you may have been looking into a Delaware Statutory Trust, also known as a DST. This entity was established as a way to allow people to invest alongside others into a property or series of properties.
If you are still unsure about 1031 DST, you have some options to consider, but you should consider the benefits of such an investment. As complicated as it may seem to own a small portion of a building, it has its rewards as well. This is what you need to know before you invest.
You Gain Fractional Ownership
When you buy into a Delaware Statutory Trust, you are given a fractional ownership of the property, including all equity and debt involved. The initial investment may be tends of thousands of dollars, which means that you don't have to have the resources or put up with the risk to make a total investment. In the meantime, you can obtain money from rental income and asset sales.
You Don't Have to Manage Properties
If you have managed property in the past, don't be put off by a DST1031. It is a lot different from owning real estate you have to manage, which can be stressful. Instead, all the decision-making and management duties are handed off to an experienced team of pros.
You Can Diversify Your Portfolio
If you want to split your investment, you can certainly do this with DST1031 transactions. This exchange allows you to invest in several properties at once, so you an have several types of real estate properties to benefit from. Not putting all your cash in one property is definitely a great choice in many situations.
You Can Invest In High-Value Properties with Little Cash
You may not be able to invest your money in high-value properties right now, but you have the opportunity to make a partial investment and reap the benefits of owning such a property. At the same time, you receive regular distributions of your money to ensure you see some return on your investments over time.
You Can Talk with a Financial Planner
If you are still deciding on what kind of 1031 DST exchange is right for you, you might want to speak with a financial planner. A professional can help you determine what kinds of properties are right for you to invest in. You can pursue many different types of DST1031s, each one with different types of properties involved.