Real estate is often considered the ultimate investment when you want to grow your wealth. Any money that you put toward the purchase of real estate is considered a secured investment, since the investment results in the ownership of something tangible.
If you have been wanting to invest in real estate on a large scale, you should consider participating in a Delaware Standard Trust (DST).
What Is a DST?
A DST is a special kind of trust that is designed to allow investors to pool their resources and invest in large properties. One person sponsors the trust, with other investors obtaining a beneficial share.
The trust model allows investors who wouldn't be able to afford large-scale real estate purchases (like an apartment complex or a medical office building) to do so. The more investors who buy into the DST, the more affordable each beneficial share becomes.
Why Choose a DST?
You have a lot of options when it comes to investing in real estate. The reason a DST makes sense for many investors is the buying power that these trusts have. The more expensive the property that you invest in, the more lucrative your return will be when you receive rental payments or the proceeds of a sale.
Novice investors in the real estate market can benefit from the automated nature of a DST. The real estate sponsor firm handles the identification and acquisition of the property. This same firm will oversee the management of the property, which means that your investment will continue to gain in value without any additional effort on your part.
A DST makes complete sense for those who are looking to elevate their investments or get their feet wet in the real estate investment market.
What About Taxes?
Diversifying your investment portfolio is wise, but it can create a headache when it comes time to file your taxes. Funneling all your real estate investment funds into a DST allows you to defer taxes on the money until a future date.
You just need to be sure that the DST you put your funds into is sanctioned under Section 1031 of the U.S. Tax Code, which means the trust qualifies as a tax-deferred exchange.
Do you want to diversify your investment portfolio by adding some real estate holdings? If so, then you should consider utilizing a DST 1031 exchange. These trusts allow you to maximize your investment value by giving you access to properties that would otherwise be outside of your price range.