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Evaluating a DST Sponsor Part 5:  Assessing a sponsor's approach to DST fee structures

Many 1031 exchangers evaluating Delaware Statutory Trusts for their replacement property are often surprised to discover that offerings frequently have different fee structures. And while you may want to stay away from a sponsor who consistently promotes its offering as having the lowest fees, you do want to determine that the fees associated with the DST you ultimately select are fair and competitive.

DST By on Nov 16, 2022

Evaluating a DST Sponsor Part 4:  Does your sponsor help mitigate tenant concentration risk?

Experienced and vertically integrated DST sponsors are generally as skilled at managing investment properties as they are at identifying, underwriting, and acquiring real estate. And a priority of property managers responsible for operating multi-tenant assets is to secure favorable leases with a diversified group of quality tenants. In doing so, the sponsor can help manage the risk of losing tenants and incurring the expense of re-leasing a property.

DST By on Nov 02, 2022

Evaluating a DST Sponsor Part 3:  Know how a sponsor selects property types

As you evaluate DST offerings for your 1031 exchange replacement property and assess the sponsors of the DSTs you are interested in, you will want to explore each sponsor's perspective on the types of property it acquires. As important as a sponsor's track record and financial strength discussed in our earlier posts, the asset classes a sponsor chooses to own are critical in determining how a DST may perform.

DST By on Oct 19, 2022

Evaluating a DST Sponsor Part 2: Financial Strength and Property Financing Structures

In this second part of our series on evaluating a DST sponsor, we look at two financial aspects: the sponsor’s financial strength and the type of financing the sponsor uses when acquiring properties.

DST By on Oct 05, 2022

Evaluating a DST Sponsor Part 1: What to look for when assessing track record

If you are considering investing in a Delaware Statutory Trust (DST) as replacement property for your 1031 exchange, you will appreciate this series of posts. At Bangerter Financial, our investment professionals conduct rigorous due diligence on every DST sponsor before we even consider adding one of their offerings to our platform.

DST By on Sep 21, 2022

Why Doesn't My Real Estate Agent Know About 1031 Exchanges and DSTs

When it comes to buying and selling investment properties, a great real estate agent can make all the difference. However, if you’ve brought up the idea of replacing your property with a Delaware Statutory Trust (DST), you may have found that your agent has never heard of it. The truth is, this is not uncommon. While billions of dollars flow in and out of DSTs each year, it is an extremely niche industry. We often find that knowledgeable professionals like real estate agents, attorneys, and CPAs...

DST 1031 Exchange Alternative Investments By on Sep 07, 2022

How to Defer Capital Gains with a 1031 Exchange

If you own a rental property and you’re looking to sell it, now might be a good time. However, without a bit of planning, the capital gains taxes you’ll owe will take a big chunk out of your sales proceeds. The good news is, IRS tax code 1031 allows you to defer your capital gains and depreciation recapture taxes by selling your investment property and acquiring a similar property. This is known as a 1031 exchange, or a “like-kind” exchange. Not interested in acquiring the same type of property ...

1031 Exchange By on Aug 24, 2022

Important Risks to Consider When Using a DST

While there are many potential advantages of investing in a Delaware Statutory Trust (DST), no investment is completely risk-free. Whether you’re considering a DST for portfolio diversification or you’re looking for a passive replacement property for your 1031 exchange, it’s important to fully understand what you’re getting into. Here’s a look at some of the potential challenges you’ll need to consider before purchasing a DST.

DST 1031 Exchange By on Aug 10, 2022

Understanding the Tax Benefits of Oil and Gas Investing

Some of the most appealing aspects of oil and gas investments are the tax advantages embedded in several different types of investment programs. The oil and gas programs with the most significant tax benefits are direct participation programs (DPP), and they include: Exploratory drilling programs (commonly known as wildcatting) These programs involve searching for oil or gas in new unproven areas or non-producing formations. Exploratory programs are generally considered the riskiest type of oil ...

Oil & Gas By on Jul 27, 2022

A Brief History of Oil and Gas Investing

In 1859, Edwin Drake drilled what many believe was the first oil well in the U.S. near Titusville, Pennsylvania. Drake could not have imagined how his discovery would create an industry that changed the world. Investment in oil and gas exploration increased over the next forty years, with activity expanding beyond the Appalachian mountains into other areas of the country. Early drillers sought oil to refine into kerosene for lamps, a new lighting technology at the time.

Oil & Gas By on Jul 13, 2022