As A Realtor, How Will This Understanding Help Me, Help My Clients?
For a realtor who wants to sell a property when an exchange is happening, they also want to sell the other property too. They may feel like a DST is taking away their sales, but it is really not.
A DST is not for clients that are looking to buy a second property and still be a landlord.
Biggest Benefit on The Commercial Side of Things
Imagine you have a client looking for a 2-million-dollar building, and they are trying to do a tax-free exchange, but you can only find them a 1.5-million-dollar building. They may love the 1.5-million-dollar building that you’ve found them, but they will have a $500,000 tax if they buy that building. So, they are going to tell you to go back and try to find something more around the 2-million-dollar range.
However, if you have an understanding of DSTs, you can explain to them that they can put that $500,000 into a DST and it becomes a fully tax-deferred exchange.
Biggest Benefit on The Residential Side of Things
People that have multiple houses and are just waiting for them to pass on, so they can get the step-up in cost for the beneficiaries may not even know that they can sell and get into a DST, which will allow them to stop being a landlord and just spend their time with their family.
The biggest thing about residential DSTs is that it may open you up to 60-100 houses that were not going to be on the market for years!
Need More Help Understanding the 1032 Exchange and DSTs?
If you are looking to gain a better understanding of the 1031 exchange and DSTs, to help yourself and help your clients, contact Kevin Walker at Great Lakes Properties and Investments to get started!
At Great Lakes Properties and Investments, we also offer CE events for you to earn CE credits. We offer classes to help you get 1-3 hours of CE credit. This can even occur remotely on Zoom! Get in touch with Kevin today!