How Investors Use Delaware Statutory Trust Properties to Replace Debt in a 1031 Exchange
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How Investors Use Delaware Statutory Trust Properties to Replace Debt in a 1031 Exchange
Navigating the nuances of 1031 exchanges can be confusing for real estate investors, especially when it comes to understanding the concept of debt replacement.?
Many investors mistakenly believe that they must replace the exact amount of debt from their relinquished property to qualify for the tax deferral benefits of a 1031 exchange. However, the IRS regulations primarily focus on the value replacement, not necessarily the debt itself. This is where Delaware Statutory Trusts (DSTs) can provide investors a compelling solution.
DSTs provide a streamlined, efficient alternative that can simplify the process of meeting the exchange requirements while also potentially removing the burden of having to qualify for financing.
Kay Properties’ Vice President, Alex Madden, considered one of the nation’s experts on 1031 exchange and DST investment strategies, will explain specific strategies investors can explore when looking to replace debt in their 1031 exchanges, including some practical benefits and ease of use that DSTs can bring to the table.
Learn more.
WEBINAR DISCUSSION TOPICS MAY INCLUDE:
- What are the 1031 Exchange Requirements for Replacing Debt?
- How to Avoid a “Boot” in a 1031 Exchange
- The Value of Pre-Arranged Debt in Delaware Statutory Trusts
- Types of Leverage (Loan-to-Value) in DST Properties
- What are Some Specific Hypothetical Examples of Debt-Replacement Strategies?