Landlords Avoid Management 1031 Exchange

I called my landlord again this morning. My roof had begun swelling with water, and it seemed like just a matter of time until the thing cracked open and dripped (or poured!) water into my unit. 

That was the third time I called my landlord about some thing or another this week. As I explained the roof issue to him, I thought, “He can’t possibly enjoy this! Being a landlord must be miserable!” He likely gets calls from people like me all … day … long.   

If you own and manage an apartment building, you probably know this story all too well. And you’re likely tired of the Terrible T’s of landlord life: toilets, tenants, and trash.

Consider Ditching Landlord Life

If so, it might be time to consider exchanging your apartment building or rental for a piece of management-free investment real estate. Many real estate investors already understand the concept of a 1031 exchange: You can exchange one set of investment properties (such as your troublesome rental home or apartment building) for another set of “like-kind” properties, while deferring the recognition of capital gains. 

In other words, you can dodge a significant tax bill while transferring your investment to easier-to-maintain properties – properties that don’t cause you to cringe every time the phone rings. 

While investors have several options for exchanging into management-free real estate, Delaware Statutory Trusts (DST) are a less commonly-known one. A DST offers investors fractional interest ownership in large, institutional-quality commercial property. With as little as $100,000, accredited investors can buy into properties they typically wouldn’t have access to – assets that are usually bought by insurance companies, pension funds, and college endowments.  

But the best part is, DSTs are managed by third-party, professional investment real estate companies who will never call you about broken toilets or ask you to repair a roof. In addition to giving you your life back, DST investments may provide: 

  • Capital preservation.
  • Tax shelters.
  • Steady income.
  • Appreciation.

If you’d like to alleviate the burden of managing your real estate investments, DSTs are worth considering. Call us at 559.213.7767, or contact us via our website, to learn about real estate opportunities beyond the Terrible T’s.

Avoid 1031 Exchange Investors' Biggest Mistakes