DST 1031 Investments Provide Tax-Deferral Benefits
A Delaware Statutory Trust or a DST investment offers investors co-ownership of investment properties. It is prevalent among 1031 exchange investors. DST investments are passive real estate investments. Besides, DST beneficiaries do not need to bear the burden of property management.
DSTs are responsible for purchasing, managing, administering, and selling real estate properties. Investors within a DST enjoy their pro-rata share of income, appreciation, and tax benefits.
DST Investment Pros
Low investment – A DST investment may start from as low as $100K.
Large structure – There is no limitation on the number of investors a DST can have. Investors with marginal investment funds also prefer it as they get ownership of investment properties for minimum investment.
Relief from property management- DST properties are managed by market experts, which lets investors enjoy a stress-free income.
DST Investment Cons
No title to a property – Investors within a DST don’t receive property title.
Can’t form single-member LLCs – DST investors aren’t allowed to form single-member LLCs.
No voting rights- DST investors don’t have voting rights over the operation of properties held by the DST.