Many of your clients probably real estate, and as their parents pass on, chances are they will inherit even more of it. But some people don’t want to deal with the “Terrible Ts” (trash, tenants, taxes, and toilets).
Enter 1031 Exchange to DST.
A 1031 exchange to a Delaware Statutory Trust (DST) can provide several benefits to your clients, such as:
- Deferring capital gains taxes
- Diversifying their investments
- Gaining access to institutional-quality real estate.
By helping your clients with this type of exchange, you can demonstrate your expertise in real estate and tax law and provide value to them by guiding them through the complex process of a 1031 exchange. This may also open new business opportunities for you, as your clients will appreciate your assistance and may be more likely to seek your advice in the future.
Tax Deferral
A 1031 exchange allows your clients to defer paying capital gains taxes on the sale of a property by reinvesting the proceeds into a similar property. When your clients participate in a 1031 exchange to a DST, they can defer paying taxes on their gains and potentially reinvest more of their profits into real estate.
Diversification
DSTs provide access to a diversified portfolio of institutional-quality real estate assets, which can help your clients spread their investments across multiple properties and reduce their risk.
Professional Management
When your clients invest in a DST, they benefit from the expertise and resources of professional real estate managers. This allows them to enjoy the benefits of real estate ownership without the responsibilities of property management.
Convenient Investing
A 1031 exchange to a DST can be a convenient and straightforward way for your clients to invest in real estate. The process is streamlined, and your clients can avoid the headaches of property management and maintenance.
Trustworthy Investment
DSTs are structured as trusts, which are regulated and overseen by the state of Delaware. This provides a level of security and oversight for your clients’ investments, which can give them peace of mind.
1031 exchanges can be a great revenue source for your business. If you have interest in offering DST’s to your clients, reach out to us and we will work with you in a variety of ways based on the type of license you have.
THE BOTTOM LINE:
By helping your clients with a 1031 exchange to a DST, you can provide valuable guidance and expertise, and potentially build a stronger, long-lasting relationship with them.