Local real estate broker liaisons with Kay Properties to capitalize on the firm’s reputation as specialist in DST 1031 exchanges, and its dedication to provide concierge-level service and education on behalf of real estate investors to create a customized 1031 exchange strategy
LOS ANGELES, Sept. 23, 2021 (GLOBE NEWSWIRE) -- Kay Properties & Investments recently announced another successful completion of an all-cash/debt-free Delaware Statutory Trust 1031 exchange. The transaction highlighted the perfect coordination between real estate brokerage representation, enlightened clients and a DST 1031 expert advisory firm to orchestrate the successful 1031 exchange of a vacant lot into a $2-million diversified portfolio.
“Kay Properties & Investments is very special to the 1031 exchange market because we do nothing but work in the DST space day in and day out. For many years, investors like these have chosen Kay Properties for our vast selection of DST opportunities, vigorous DST due diligence process, extensive expertise in real estate, and relentless dedication to customer service,” said Dwight Kay, Founder and CEO of Kay Properties & Investments.
According to Chay Lapin, DST 1031 expert and Kay Properties President who supervised the exchange process, the transaction first entailed extensive education for both the real estate broker and the investor client. This included reviewing potential DST properties that would possibly be a good fit for the investor’s long-term plans, lengthy discussions about the potential benefits and risk factors of investing in real estate and DST investments, and then creating a detailed business plan that ensured the multiple 1031 exchanges would be met within the allotted time frame, along with zero debt (aka debt-free Delaware Statutory Trust investments) with a passive management structure, and targeted monthly cash flow to the investor.
“What made this DST 1031 exchange so special was that it was originally brought to us through the real estate broker. She not only understood that there would be some significant tax consequences following the sale of this unique parcel of land but also understood she wasn’t experienced enough to accurately guide her client through the nuances and rules associated with DSTs. She was, however, taking care of her client’s best interest, and incredibly insightful to recognize that a DST investment would be a perfect fit for her client’s needs even though she knew that since she was not a licensed securities representative, she would not be able to receive compensation for the referral,” said Lapin.
After coordinating with the real estate broker and client on the sale of the land parcel, the Kay Properties team of Delaware Statutory Trust 1031 experts worked closely with the client’s entire family to identify and ultimately invest in five different debt-free DST offerings. As a result, the client was able to defer all the accumulated capital gains and depreciation recapture taxes upon sale of the land and invest the entirety of the tax-deferred capital into Delaware Statutory Trust offerings. By utilizing the Kay Properties 1031 DST marketplace at www.kpi1031.com, the client was grateful to be able to diversify into passive DST investments with the potential for monthly cash flow.
As a result, the client was able to diversify across multiple asset classes, including medical, commercial and industrial, while also spreading their investment across multiple geographic regions.
Matt McFarland, Vice President and DST 1031 specialist with Kay Properties, emphasized that one of the most valuable attributes Kay Properties brought to this client, like all their clients, was valuable information in the form of detailed education on the nuances of the DST investment marketplace.
"Through the education and explanation of the investment process, we encouraged the active engagement of all family members, as the decision to invest in DSTs is really a collaborative group effort for not only the investor but also their family members and their heirs. Family members are able to bounce ideas off each other and ask questions that the individual may not think to ask. When all the exchanges were completed, the client reached out to me to inform me how grateful he and his family were to get to work with the Kay Properties team and our significant menu of debt-free DST properties in addition to our access to the marketplace of DSTs both with debt and without,” said McFarland.
ABOUT KAY PROPERTIES & INVESTMENTS
Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market. Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over $15 billion of DST 1031 investments.
*Diversification does not guarantee profits or protect against losses.
*This case study may not be representative of the experience of other clients. Past performance does not guarantee or indicate the likelihood of future results. Please speak with your attorney and CPA before considering an investment.
This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the "Memorandum"). Please read the entire Memorandum paying special attention to the risk section prior to investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through Growth Capital Services. Member FINRA/SIPC. Kay Properties and Investments, LLC and Growth Capital Services are separate entities.
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