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A lot of individual investors prefer growing their portfolios by selling and buying investment real estate. One of common needs of these investors is to increase the investments quickly. More often than not, the amount they possess is not sufficient for achieving the growth they expect.

This is where fractional co-ownership appears in the picture. Through this process, an individual gets a chance to get the ownership of a profitable real estate asset, which is otherwise not possible for an individual to do with his/her own resources.

Fractional ownership also lets the investor diversify the portfolio. Delaware Statutory Trust (or DST) is one such form of fractional real estate ownership where the individual can get a hold of institutional-grade by investing only $100,000.

It is also popular among those investors who want to defer the taxes related to capital gains on investment property. This is done via 1031 real estate exchange, in which DST investments act as replacement property.

Tenants-in-common (TIC) is also quite popular among investors, but a lender underwrites multiple borrowers in the TIC structure. In the DST, only a single borrower is underwritten by the lender. A DST can have an unlimited number of investors, whereas the limit is 35 in the case of TIC.

These factors show that fractional ownership especially that of DST is quite beneficial for those who want good results through real estate investments.

You can contact the representatives from FAI Exchange to help you find DST properties that suit your budget.

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