How You Can Directly Access the Potential Benefits of Section 1031 Exchange
Whether you’ve never invested in real estate before or own several properties, a Section 1031 exchange can be a way to potentially grow your investment portfolio. If you are an accredited investor, you can invest in a 1031 exchange independently without a financial advisor, representative or brokerage firm. Instead, you may utilize Direct 1031 Exchange and directly invest through its secure online investment platform.
What is a 1031 Exchange?
A 1031 exchange enables you to sell a business or investment property (or portfolio), and purchase another one with the proceeds, in a timely manner in order to defer federal and state taxes on capital gains. Instead of hands-on management, the Direct 1031 exchange replacement properties are professionally managed by investment sponsors.
Direct 1031 Exchange structures its 1031 exchange investment offerings as a Delaware statutory trust, a distinct legal entity created under Delaware law and 1031 Exchange Rules. In accordance with the IRS Revenue Ruling 2004-86, a beneficial interest in the DST is treated as an undivided fractional interest in the DST’s real estate for federal income tax purposes.
How Direct 1031 Exchange’s Platform Aims to Save You Money
This new online investment portal available exclusively through Direct 1031 Exchange allows you to quickly participate in 506(c) DST offerings on your own, so that you may experience:
- No upfront load or commission
- Potentially deferred federal and state capital gains taxes under Section 1031
- Passive ownership in commercial investment properties
- An objective of monthly distributions from rental income
As a result, you may be able to focus your money on these real estate investments without paying up-front fees or steep taxes.
Matt Bear, president of Direct 1031 Exchange, quickly sums up the real estate investment sponsor’s service: “Our easy-to-use online portal simplifies the entire Section 1031 exchange process, while simultaneously saving costs typically passed on to the investor.” Keep in mind that this is statement in no way is a guarantee of future performance or success.
Interested in exploring 1031 exchanges further? Be sure to visit the Direct 1031 Exchange Knowledge Center to learn more.
What to consider before investing in a DST
Investors should not invest in DST’s if they cannot afford to lose their entire investment. Due to the lack of liquidity in every DST investment, DSTs are long term investments. Investing in a Delaware Statutory Trust - DST property carries all the potential risks and potential benefits associated with real estate investing including loss of capital, with additional DST specific risks. There is no guarantee that DST net income will flow to an investor as originally projected. There is no guarantee that a DST property will appreciate in value, or that it won’t go down in value. DST investments are illiquid assets, and there is currently no established secondary market.
The trustee is limited to making capital expenditures with respect to the property to those for a) normal repair and maintenance, b) minor non-structural capital improvements and c) those required by law. Securities offered through North Capital Private Securities, Member FINRA/SIPC.
© 2018 Direct 1031 Exchange
This site is operated by Direct 1031 Exchange, LLC “Company”, which is not a registered broker-dealer. “Company” does not give investment advice, endorsement, analysis or recommendations with respect to any securities.
Securities offered through North Capital Private Securities ("NCPS"), Member FINRA/SIPC, located at 623 East Ft. Union Blvd, Suite 101, Salt Lake City, UT 84047. NCPS does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered. Check out the background of North Capital Private Securities at FINRA's BrokerCheck. This website is intended solely for qualified investors. Investments in private offerings are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in such offerings.
*When compared to most 1031 exchanges that sell their interests through a broker dealer.