If you are a seasoned real estate, you might be aware of the term ‘fractional real estate investments.’ You can simply consider it as a co-ownership in one or multiple properties by various real estate investors. This type of investment is popular among 1031 exchange investors, who can defer capital gains taxes. For fractional 1031 investments, the IRS has approved two structures: the DST (Delaware Statutory Trust) and TIC (Tenants-In-Common).
Here are some perks of fractional real estate investments that make it a preferred choice.
Get a hold of high-value properties
An investor can get fractional ownership of properties like a medical office complex, multi-unit apartment building, or shopping complex. These types of properties are usually beyond the reach for an individual.
Handling a property as a landlord is one of the toughest exercises. There are even several books written on how to manage your property as a property. The good news is that you don’t have to manage or maintain your DST investments.
Enjoy stable income
You, as an investor, can examine potential returns and the risks linked to DST properties. This is because the DST properties are usually stabilized assets with active operating histories.
Diversification of real estate portfolio
The structure like DST allows an investor to have a hold of multiple properties. This helps in diversification on the basis of location and property type.
If you are looking Delaware Statutory Trust for 1031 exchange purpose, contact the experts from FAI Exchange. Apart from helping you locate the best DST investments, the experts will guide you through the whole exchange process.