Why are DST exchange properties so popular among investors?

If you have entered the real estate market for some time now, but the financial compensation received do not overcome the responsibilities involved, then perhaps there is another more convenient solution out there for you. You have probably heard about the Delaware Statutory Trust and their 1031 property exchange programs, but without researching the topic, you are probably now aware of its benefits. Well, there are some reasons why this type of investment opportunity has become so popular among investors everywhere. Here is what a DST program can offer you:

Tax deferrals

What makes 1031 DST exchange properties such a good choice for investors is the tax deferrals that they can have access to. Selling and buying a property involves the obligation of paying various taxes, besides many additional costs. This aspect can affect your profits, so in order to gain a financial advantage, you should consider a 1031 property exchange program for your next investment. The tax reduction that the DST can offer you is certainly an advantage that you cannot neglect.

Gain access to higher quality real estate

1031 property exchange programs give you the chance to access higher quality real estate – properties that you would not normally afford. Although your ownership will be fractional, the chance of gaining access to properties of higher values will be extremely beneficial for your business profile. You can create a more professional image for yourself, and while not exceeding your financial capabilities, you can explore a part of the real estate market that you had not been able to in the past.

Several exit strategies

Beside the financial aspect, and the increased investment opportunities, the Delaware Statutory Trust also comes with several exit strategies. Because the parties involved in the process can establish their own obligations and gains, you may benefit from limited liability. So, in case of debts, or other inconveniences that may arise, regarding that particular property, you can easily find an exit strategy. The contractual freedom of a DST program is one of the things that has made this option so popular for investors.

Lower minimum investments

Another aspect that may draw you, as an investor is the minimum investment amount that the DST requires. Although 1031 exchange programs are certainly advantageous, in comparison with the NNN, the DST is more versatile and accessible by those who do not want to invest a significant amount of money. The contractual freedom it comes with will allow you to invest exactly the amount you desire, without any further obligations or responsibilities. From a financial point of you, this program will not disappoint you.

Taking into account all of these advantages, you can clearly see why DST exchange properties have increased in popularity over the last few years. If you want to take advantage of this opportunity yourself, then look for a company that specializes in the domain, and ask for some professional assistance. With the support of the right pros, and sufficient information on the topic, you will manage to take your investments to a more successful level.