Webinar Replay

Frank Piscitelli did a fantastic job explaining how DSTs offer a compelling option for a tax-free 1031 exchange for those no longer interested in managing their real estate investments. Frank reviewed the nuances of 1031 exchanges, to include the timing, qualified intermediaries, partial exchanges and more. He then provided an in-depth review of DSTs (Delaware Statutory Trusts), which are real estate vehicles managed by institutional managers, a.k.a. "Sponsors", like Cantor Fitzgerald. 

Things I learned include: 

• You must identify your list of possible replacement properties no later than 45 days after the close of escrow on the relinquished property
• You can reserve, in advance, space in a DST property in the amount you plan to invest with no obligation
• Client's total ownership is equal to the cash they invest plus their fractional share of the non-recourse DST financing. This helps ensure clients can satisfy the 1031 exchange rules. 
• DSTs typically return 5-6% per year, cash-on-cash. A large percentage of that will be tax-free. 

Rating: 88% if the attendees rated this session as "Excellent."