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Kay Properties & Investments Helps Accredited Investor 1031 Exchange Into 15 Different Delaware Statutory Trust Investments within 30 Days
Kay Properties & Investments successfully helped a high-net-worth client complete 15 Delaware Statutory Trust (DST) investments following the sale of five multifamily properties within a short period of time.
“This particular client leveraged the full potential of Kay Properties' unique real estate platform that combines extensive client education, a robust menu of diversified DST investment options, and deep market contacts across the country. We spent more than a year working closely with him until he was comfortable with us and the DST 1031 Exchange investment model. After conducting literally years of research on the subject, he decided that DST investments provide an investment strategy that fit his own goals and objectives better than active ownership/ management of rental properties,” said Dwight Kay, Founder and CEO of Kay Properties.
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Kay also explained that this type of transaction illustrates the growing popularity of DST 1031 Exchanges among real estate investors.
“As DST 1031 Exchange and investments experts, Kay Properties & Investment representatives speak with hundreds of investors each week who want to know more about DST investment opportunities,” said Kay.
After completing his first DST 1031 Exchange several years ago, the client recognized the level of expertise Kay Properties provided throughout the entire exchange process, and how readily available the entire Kay Properties team was to answer questions or provide advice.
“He first started to learn about DST investments through educational material we shared with him. Then, he started to conduct his own research and really got comfortable with how DST 1031 Exchanges work. He kept asking me questions, and I was always there for him with answers. Plus, he really got to the point several years ago where he didn’t want to be a landlord anymore. He was proud of himself for having built such a portfolio during his younger years, but he just reached a point in his life where he wanted to start selling some of his investment properties,” said Jason Salmon, Senior Vice President and Managing Director of Real Estate Analytics with Kay Properties & Investments.
High net-worth investor decides to relinquish a portion of his rental property portfolio in a succession of sales before entering into multiple DST 1031 Exchanges to help achieve diversification, nonactive management, and potential monthly income
Because the investor had already completed at least one DST 1031 Exchange and was comfortable with the investment vehicle, Salmon explained he now wanted to slowly liquidate his real estate portfolio. The investor, along with his CPA and attorneys worked closely with Salmon and Kay Properties DST experts to create a very detailed plan that included anticipated closing times on the relinquished properties, timelines for finding and vetting replacement properties that fit within the investors very specific parameters, and creating a workflow that coordinated all the necessary paperwork and signatures so that everything was organized and every closing went smoothly.
“Some sales overlapped with each other, and so it became a cadence - one after the other, after the other, after the other, after the other. We are in constant contact and we really immerse ourselves into finding just the right DST property or properties that fit perfectly into his investment model,” said Salmon.
“The gentleman is very, very comfortable with DSTs at this point, and is very pleased with the diversification, passive ownership, and potential monthly income stream that he has been able to accomplish. I believe his intention is to not buy any more rental real estate, and continue to move into DST investments on a systematic basis,” said Salmon.
These examples are the experiences of a few of our clients and may not represent the experiences of others. Past performance does not guarantee or indicate the likelihood of future results.
This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. This material is not to be construed as tax or legal advice. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through FNEX Capital, member FINRA, SIPC.
