DST is one of the underrated business trusts when it comes to real estate investments in the USA. But in reality, it can offer you myriad benefits due to important attributes attached to it.
Here we present 5 major reasons to invest in this unincorporated business trust (UBO).
Can be purchased as a replacement property
The investors, who are planning to defer taxes on capital gains through 1031 exchange, can purchase Delaware Statutory Trust properties as a replacement property.
No mortgage on replacement property
As the financing is already available for DST property, there is no need of getting a mortgage on the replacement property.
No management responsibility
The investors are prevented from the hassles related to the management of the property. The time consumption and paperwork are also very less as compared to the direct property purchase.
Can be used as a relinquished property
While planning to sell the DST, the investors are eligible for a 1031 tax-deferred exchange. This means the DST can act as a relinquished property.
No voting for major decisions
The mutual funds that use a DST do not need voting to approve any major decision. On the other hand, in the case of a tenant-in-common concept, equal voting rights and unanimous approval are the major attributes.
Low investment
Last, but not the least, the investors can purchase the DST properties for as low as 25,000 dollars.
For investors looking for a good GST property, FAI exchange appears as a trusted partner. Check all the available GST properties by clicking this link.