LEADERS IN 1031 & DST INVESTMENTS
Imagine never having to fix a sink on your anniversary, leave your day job because the electricity went out, or scramble to find a plumber in the middle of your vacation.
Start InvestingConstantly working, even on vacations, Shikha knew that something had to change. She wanted to get away from the day-to-day headaches of property management. Shika began researching DSTs and after interviewing seven brokers, she knew that Stacey and Stax Capital was the right solution for her.
You get deep and insightful advice because our founders have spent decades immersed in the detail and culture of direct participation, DST and 1031 exchange investments.
You get connected to sponsors with vetted track records and you're able to select from investments that the Stax team has put through comprehensive due diligence.
We identify critical risk factors including management flaws, unrealistic financial modeling assumptions, property physical deficiencies and performance resilience against negative trends.
Stax Capital provides retail accredited investors with access to non-traditional, alternative investment vehicles which have historically been limited to institutional investors such as pension funds, endowments and large family offices.
Stax Capital follows a strict sponsor selection process. We only work with 10-12 of the 50+ product sponsors in the DST market. These are the select few that have successfully completed our diligence process, were impressive during our executive interviews, and demonstrated a track record of responsibility over the course of many years.
You’ve spent years doing your research, acquiring the right properties, and building your real estate portfolio. Through it all, you’ve sacrificed family time, got by on less sleep, and handled every tenant issue, no matter how inconvenient. Your equity should continue to work hard for you, managed by people you can trust.
A 1031 exchange allows you to swap one investment property for another and defer the capital gains tax that you would otherwise have to pay at the time of sale. The property you’re selling and the property you’re buying must be "like-kind," which means they must be similar but not necessarily the same quality or grade.
There are two important deadlines to know.
You must identify your replacement property within 45 calendar days from the date you sell your property. And you must complete the purchase of your replacement property within 180 calendar days from the date you sell your property. The IRS does not grant extensions.
If your new property costs the same as the sale price of your old property, your depreciation schedule will remain the same as it was for your old property.
If you "buy up" in your exchange (your new property cost more than you sold your old property for), you treat the buy-up as you would a new addition to an existing property.
If you “buy down,” you will continue your depreciation schedule as if you still owned the old property, but you’ll need to keep track of your depreciation recapture.
A Delaware Statutory Trust is a separate legal entity that allows you to pool your resources with other accredited investors. Together, you purchase beneficial interests in professionally managed real estate properties, making this a completely passive way to complete a 1031 exchange.
DSTs are made up of institutional-grade real estate — apartments, self storage, triple net lease, office buildings, retail properties, hospitality, senior and student housing — that are typically out of reach for the average investor.
At Stax, we focus squarely on apartment buildings and self-storage units. That’s because we’re thinking about macro-economic factors like monetary policy, interest rates, and inflation. We believe these property types are the best options when it comes to mitigating risks.
DST investments are typically held for 4-10 years. Once a DST is sold, you’ll receive your share of the proceeds and any additional appreciation.
You can then do a 1031 exchange into another DST or real property, pay taxes on the realized gains, or some combination of the two.
We’ll talk through your circumstances, your goals, and your questions so that you can make the most informed decisions. Fill out the form below or give us a call, and you’ll hear back from us within 1 business day.
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