45 Days to Reinvest?

Stax Capital has access to a large inventory of 1031 Exchange Opportunities to help defer taxes.

Delaware Statutory Trusts offer an IRS approved vehicle for 1031 exchanges, which can potentially defer long term taxes, simplify ongoing tax reporting obligations and liberate investors from hands-on property management. They have the potential to provide positive cash flow and long-term capital appreciation.

That’s how we put diversification first

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DELAWARE STATUTORY TRUSTS

A passive investment strategy leveraging 1031 tax deferral

DST provides an IRS-approved vehicle for 1031 exchange DST properties, allowing investors to postpone long-term taxes, simplify ongoing tax reporting duties, and avoid having to manage their properties. They have the capacity to generate steady income as well as long-term tax advantages.

Delaware Statutory Trusts

Putting Freedom from Management First.

DSTs provide an IRS-approved vehicle for 1031 exchange DST properties, allowing long-term taxes to be deferred, reducing continuing tax reporting requirements, and relieving investors of property management responsibilities. They have the capacity to generate steady income while also increasing in value over time.

Tax deferral and minimization

Delaware Statutory Trusts provide an IRS-approved vehicle for 1031 exchange DST properties, allowing long-term capital gains tax deferral, net investment income tax, state income tax, and depreciation recapture on the sale of real estate investment properties.

Maximize tax benefits.

Freedom from property management

Direct investment is possible by exchanging into DSTs, which eliminates the need for property maintenance. Institutional-grade properties are professionally managed by vetted and experienced professionals.

Free up your time.

Institutional quality at low minimums

Individual investors often do not have access to properties of the size and scope that DSTs provide. Unlike traditional TIC (tenancy in common) agreements, DSTs require as little as a $25,000 investment.

Access larger investments.

Wealth management

The structures of Delaware Statutory Trusts and 1031 exchange DST properties allow real estate investors to keep the benefits of their investments, including as prospective cash flow, tax-advantaged income, and passing through costs, depreciation, and other tax benefits.

Make the most of your wealth.

Why use Delaware Statutory Trusts?

Property management isn't always easy.

Terrible T's

With an investment property, you've built your fortune, but managing it may be time-consuming, challenging, and unpleasant. Either you're managing a property manager or you're dealing with the 'Terrible T's' of tenants, taxes, trash, and termites.

1031 Exchange DST Properties are complex

Using 1031 exchanges to go from active to passive real estate investment can be time-consuming, risky, and complicated. From escrow till the sale to qualified intermediaries. Time constraints, detailed paperwork, and reviews are all factors to consider.

Accounting is rigorous

When it comes to reporting and compliance, keeping track of income, expenses, capital upgrades, investment basis, new tax rules, and so on can be difficult. To fulfill many of these demands, DST sponsors offer full asset management and accounting services.

Time is pressing

The 45-day identification period can cause tremendous pressure when looking for replacement property to delay tax by qualifying for a 1031 exchange, and it can lead to the danger of paying capital gains and other taxes prematurely.

DST's can be instrumental in your success

DST simplifies 1031 exchanges by lowering the level of complexity.

replacement property solution.

Tax mitigation

Defer long-term capital gains and other sale-related taxes by reducing taxable income overtime via depreciation and other expenses. For tax purposes, sponsors produce simple year-end profit and loss statements.

Minimize your tax burden.

Total return vehicle

Delaware Statutory Trusts can provide passive cash flow with returns comparable to institutional-quality investments while also allowing you to expand your wealth through capital appreciation.

Enjoy and grow your wealth.

Eliminate management

Property management is time-consuming, but swapping into DSTs frees you from termites, toilets, and tenants. So there will be no more management and no more opportunistic phone calls.

Protect your free time.

Simplify reporting

The accounting function is managed by the sponsors, who provide year-end profit and loss accounts for tax preparation. With DSTs, you're less concerned with the details and have more time to enjoy yourself.

Make tax reporting easy.

Pre-arranged financing

The investment sponsor secures all DST financing through existing lending agreements. The loans are usually fixed-rate and non-recourse to the investor, with periods ranging from 7 to 10 years.

Delegate loan sourcing.

Holding Period

The average DST holding period is between 7 and 10 years. Managers usually plan and carry out property sales in response to favorable market conditions.

Use the professionals.

Quickly identify property

Prior to and throughout their 45-day identification period, we are usually able to give investors with various Delaware Statutory Trust options. DST’s can also be used for backup purposes or leftover exchange equity.

Assure your 1031 exchange DST properties.

 

Is a Delaware Statutory Trust right for you?

You may want to consolidate.

For simplicity of management and quality, you want to combine your interests across various real estate investments into fewer, larger ventures.

You're retiring or stepping back.

Real estate investment makes a lot of sense in terms of diversification and tax benefits, but you're ready to be free of management.

You're deferring capital gains.

You've just sold a valuable asset and now need to focus on delaying capital gains and other relevant taxes in order to protect your fortune.

You have excess 1031 proceeds.

You bought a home on your own but have excess sale proceeds, so instead of paying capital gains tax, you request a 100 percent tax deferment. DSTs with a minimum of $25,000 can help you avoid being booted.

You're seeking replacement property.

You've sold a home and are seeking for a suitable replacement property within the 45-day timeframe in order to complete a 1031 exchange.

You may want to diversify.

You recognize the importance of diversifying your investment portfolio and want to add institutional-quality real estate to help mitigate typical investment risks.

How Delaware Statutory Trusts work

STAX Capital DST Exchange Guide

Our DST Exchange Guide gives you a thorough understanding of the 1031 exchange procedure, as well as how Delaware Statutory Trust investments work and may be leveraged to help investors acquire access to institutional-grade properties.

 

DST's are no magic bullet

Although there are many benefits, DST's have general

investment risks there are a few noteworthy risks.

 

Illiquid structure

Because DST investors do not have access to a secondary market, and one is unlikely to arise, selling a DST position is difficult.

Can be difficult to sell.

Delegated control

Investors hand over control of their investments to management and hence have no influence in how decisions are made.

No decision-making.

Fees and expenses

Investors should be aware of all fees and charges before making an investment decision, just as they should be aware of any other investment.

Always review fees and expenses.

Sale decisions

Sponsors are the ones who decide whether or not to sell DST. They are determined by market conditions and other factors that influence the sale price.

Selling decisions are independent.

Market risk

Market concerns, including as general economic risks, property-specific submarket risks, and geographical risks, affect 1031 exchange DST properties. Investing is fraught with danger.