How to Transition from Active or Passive Real Estate Investing Using the Delaware Statutory Trust
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Chad sit's down with Tommy Thompson and Justin Kheine of Fortitude Investments to talk Deleware Statutory Trusts: what they are? when to use them? 1031 exchange applications, and more.
A Delaware Statutory Trust is a real estate ownership structure where multiple investors each hold an undivided fractional interest in the holdings of the trust. A professional real estate company (the DST sponsor) establishes the trust by identifying and acquiring relevant real estate assets.
As individuals invest, their investments displace the capital used by the DST sponsor to acquire the property until it is eventually wholly owned by the investors. Investors own a beneficial interest in the trust which means that investors hold a percentage of the ownership. So no single owner can claim exclusive ownership over any specific aspect of the real estate.
DSTs come with many advantages, including
- tax benefits
- income potential
- the opportunity to buy ownership in an institutional-quality asset
- DSTs are eligible for 1031 exchanges.
Podcast Website: CRE Intersect.com | Chad's Business Website: ChadMassaker.com
5 episoder