There are no special regulations for 1031 exchange facilitators. There are only two states that have license and bonding requirements. Therefore it’s very important to know what to look for in order to ensure the best possible exchange services for the transaction. contact us 1031xchange.com for more detail.
A Delaware Statutory Trust or a DST is offered mainly as real estate securities to 1031 Exchange investors. DST investments are passive real estate investments that allow investors to acquire fractional ownership in real estate properties without the burden of property management. The structure for a DST investment was first created in Delaware in 1947. However, it isn’t mandatory for a DST to be located within the State of Delaware. DSTs are generally responsible for purchasing, managing, administering, and selling real estate properties. Investors within a DST enjoy their pro rata share of income, appreciations, and tax benefits. DST investments offer similar benefits and risks as any other real estate investment.
1031 Exchanges are mainly used by investors for deferring capital gains taxes. However, it also gives an opportunity to exchange old or depreciated properties for new institutional-grade properties. This not only removes the burden of managing a depreciated property but also guarantees a steady flow of income from the new property for a long time. You should know that the amount of profit you could make out of your 1031 Exchange depends entirely upon the type of the replacement property you’re investing in.