Real estate remains the most popular alternative investment market valued for its potential for portfolio diversification, reducing volatility and amplifying returns via tax advantages, income and capital appreciation. The asset class may perform well even in an inflationary or volatile economic environment because investment properties derive value from a rent-based multiple. As rent rises because of inflation, the overall property value may increase. The best part is there are multiple ways you can passively invest in real estate without the hassle of buying or managing properties, dealing with tenant-landlord laws or covering out of pocket ongoing upkeep expenses.
Besides real estate investment trusts (REITs) and crowdfunding platforms, another excellent option is the Delaware Statutory Trust (DST) 1031 Exchange — a legal entity created for holding title to investment real estate. As a form of passive real estate ownership, DSTs lets you diversify your portfolio by allowing investments into multiple properties instead of just one. The IRS considers well-structured DSTs as like-kind 1031 exchange-qualified replacement property, meaning you can use them to defer capital gains taxes. If you’re seeking DST properties or offerings for your 1031 Exchange, 1033 Exchange or direct cash investment, Kay Properties & Investments could be a fantastic platform to access these Delaware Statutory Trust investments.
This best-in-class 1031 Exchange platform specializes in DST investments from over 25 different DST sponsor companies. Kay Properties & Investments leverages its team of experts with a combined 200 years of experience to guide investors on the potential benefits and risks of DST investments, helping them decide if the available DST options in the market are ideal for their real estate investment and 1031 exchange needs. By providing investors access to the marketplace of DSTs across various asset classes (think multifamily apartments, industrial warehouses, medical facilities, self storage properties and long-term triple net leased DSTs), geographic locations (the platform has DST investments across the United States in many different cities and states, various leverage scenarios ranging from 0% debt free DST offerings to 30-85% loan to value DST offerings (1031 exchange investors need varying degrees of leverage to complete their 1031 exchanges with a full tax deferral) and lastly numerous DST sponsor companies (these are the asset managers that put together these Delaware Statutory Trust investments), the www.kpi1031.com marketplace platform enables tax-smart investing, tax deferral utilizing the 1031 exchange and DST combination and numerous options for investors from over 25 different DST sponsor companies. Read on for a comprehensive review of Kay Properties & Investments, including its core service offerings and pros and cons.
- Access to over 25 different DST sponsor companies
- Robust DST inventory - About 20 to 40 DST investment offerings available at any given time
- DST Expertise - Participated in excess of $30 billion in total DST 1031 offerings
- Overseen by experts with over 200 years of combined real estate investment experience
- Excellent and professional customer support and guidance from the Kay Properties team members
- Excellent educational resources to facilitate clients' understanding of DST 1031 exchange investing
- Hassle-free registration and account setup
- Ownership has been investing in DSTs personally since 2008 with over 50 different DST investments from multiple DST sponsor companies. This hands on experience has benefitted the Kay Properties clientele immensely over the years.
- The Kay Properties marketplace has many DST offerings including leveraged DST offerings (typically 30-60% loan to value) as well as the industry’s largest selection of debt free DST offerings (debt free DST offerings are ideal for investors that do not want the risk of losing their entire investment principal to a lender foreclosure)
- Available only for accredited investors
- Involves buy-and-hold long-term strategy - DST offerings typically are held for 3-5 years but could go for even longer
- Investors have limited control over the investment
- No guarantees - All real estate and Delaware Statutory Trust properties contain no guarantees for income or appreciation
Kay Properties and Investments Ratings at a Glance
Kay Properties & Investments Product Offering
The Kay Properties & Investments platform provides investors access to the marketplace of 20 to 40 DSTs from over 25 different Delaware Statutory Trust sponsor companies. Investors can access custom DSTs exclusively available to Kay clients and a DST secondary market. To better grasp the services offered by this platform, you need a constructive understanding of DST 1031 exchange investment, including its full-cycle events and what happens afterward.
What is a 1031 Exchange?
A 1031 exchange (or like-kind exchange) involves swapping one real estate investment property for another, enabling you to defer capital gains taxes. It is a tax break based on Section 1031 of the IRC. For example, suppose you sell a property used for business or investment and replace it with a new one for the same purpose. In that case, you can defer capital gains tax on the sale. However, you cannot receive the proceeds from the sale, even temporarily. They must be held in escrow by a third party (a Qualified Intermediary - QI) and then used to purchase the new property.
The properties you're exchanging must be like-kind (held for investment or business purposes) in the eyes of the IRS; otherwise, capital gains tax will apply. For example, you can swap a ranch for a strip mall or an apartment building for raw land or a rental house for a Delaware Statutory Trust investment. There's no restriction on how often you can execute a 1031 exchange. You can continuously roll over gains from one investment property to another.
What is a DST?
A Delaware Statutory Trust (DST) is an ownership structure for 1031 exchanges in which each investor holds an undivided beneficial interest in the real estate trust. Beneficial interest implies that each investor within the trust holds a portion or percentage of the real estate assets within the DST. The IRS revenue ruling 2004-86 qualifies DSTs as "like-kind" investment properties for 1031 exchanges, making them appealing to many real estate investors. The full cycle of your DST investments encompasses its entire lifecycle, from acquiring your DST interest to its eventual sale. This life cycle ranges typically from 3 years to up to 12 years or even longer. It starts with the DST sponsor acquiring real estate assets and offering DST beneficial interests to investors pursuing the 1031 exchange strategy.
During the investment period, you can receive regular distributions from the rental income and potential tax benefits from the properties held within the DST. Once the investment's goals or other deciding factors are achieved, the DST sponsor initiates the disposition or sales of properties within the DST and the complete liquidation of the investment. You're then rewarded 100% of your proportional share of the net sales proceeds from the property. After completing the DST investment cycle, you can sell the DST investment and pay any associated taxes, reinvest into another DST via another 1031 exchange or invest in a whole property on your own.
How Kay Properties & Investments Works
When you register on the Kay 1031 marketplace, you receive free access to more than 25 different DST sponsor companies and between 20 and 40 various DST 1031 investments. Each DST offering includes details like minimum investment, loan-to-value ratio and asset type. You can easily find a project that best fits your investment needs by exploring the various offerings. Besides the investment offerings available to the broader DST marketplace, you can also participate in private, exclusively available, off-market DST properties.
Remember that you must qualify as an accredited investor per SEC Rule 506 of Regulation D to invest in the DST marketplace via the Kay 1031 platform. Kay's expert team of real estate professionals are readily available to advise, guide and furnish you with relevant details regarding DST 1031 exchange investing during the entire process, enabling you to make an informed DST investment decision. This team has over 200 years of combined real estate experience and has participated in over $30 billion of DSTofferings, underscoring their expertise and track record in the industry.
Educational and Research Resources
Kay Properties provides one of the most comprehensive educational resources, focused on informing investors about the potential advantages and disadvantages of Delaware Statutory Trust investments for 1031 exchanges. Available resources range from blogs to podcasts, webinars and downloadable magazines. The blog archives comprise an extensive collection of carefully crafted articles or content on DST 1031 exchange investing and marketplace, its meaning, history, benefits, disadvantages and more.
The podcast explores recurring themes and nuances of the DST investment process. At the same time, the webinar provides straightforward and informative insights into the types of DST real estate properties available for 1031 exchanges. Multiple short clips on Kay TV also delve into the nuances of DST investments. The downloadable magazines include the "1031 DST Digest Magazine," which offers insightful tips and updates on 1031 DST investing, and "The 1031 Exchange Times," which provides regular tax deferral news for real estate investors nationwide.
For a comprehensive guide to DST properties investing, you can request hardcopy material of the same name published by the company's founder, Dwight Kay. Additionally, the platform annually hosts educational client dinners nationwide, offering a direct dialogue for numerous property owners and investors with the Kay Properties team members. This process allows discussions about challenges related to active property management and explores the DST as a viable option for 1031 exchanges.
Kay Properties & Investments offers efficient and highly responsive customer support via email and Phone — (855) 899-4597. You can speak directly with any team member via mobile or Email using their contact details on the contact page. You can also fill out the contact form at the bottom of the same page to receive the company's complete inventory of 1031 DST properties for sale or schedule a call to speak with an agent for similar purposes. The company maintains an active presence on multiple social media platforms, including Facebook, X, Instagram, LinkedIn and YouTube, providing an alternative means of interacting with the support team and asking questions. With an A+ rating from the Better Business Bureau (BBB) and numerous positive Kay Properties customer reviews on its testimonial page, the platform showcases excellent customer support and overall product or service offerings. This achievement reflects the professionalism, dedication and expertise of the company's real estate professionals.
Kay Properties & Investments prioritizes the protection of investors' funds and data. The company's securities are offered via registered representatives of FNEX Capital. FNEX is a member of FINRA/ SIPC, meaning the company will take adequate steps to protect investors' funds in line with the rules and regulations guiding these regulatory institutions.
Kay Properties & Investments employs standard encryption protocols to protect users' data at rest and during transit through the network. While it might collect your personally identifiable information (PII) during sign-up or registration on the website, the platform will not sell or share such data with a third party except if consent is given or via judicial precedent. Investors maintain absolute rights over their data, including its rectification, transfer, amendment and erasure and can request such by contacting the team via email at info@kpi1031.com.
Kay Properties & Investments targets high-net-worth investors, as reflected in the minimum DST investment pricing of $25,000, which is the lowest listing on the website. However, this is unsurprising, considering that the eligibility criteria to register on the platform involves meeting the SEC definition of an accredited investor. Typically, you're considered an accredited investor if your net worth surpasses $1,000,000 (excluding your primary residence) or your annual income exceeds $200,000 for the current and past two years. So, suppose you're an undercapitalized investor seeking to expose your portfolio to real estate assets. In that case, consider other alternatives like crowdfunding platforms, REITs and real estate ETFs. You can register and view Kay's DST investment properties for free as well as when you do you will be provided with a Private Placement Memorandum (PPM) for each of the DST offerings. This PPM specifically goes into detail on each of the properties, the business plan, risk factors and fees associated with participating.
Kay Properties & Investments offers a user-friendly real estate investing experience, streamlining accessibility to tax-efficient DST 1031 exchange investing for accredited investors. Account registration or setup is hassle-free; click "Get Free Access," fill out the registration form, certify that you're an accredited investor and submit your form. Subsequently, one of the company's team members will get back to you for the next relevant step. But before then, you can view and access the various DST listings for free. The company's team of experts simplifies the entire process through excellent guidance, advice and detailed explanations of the DST real estate investment approach.
Investors can seamlessly connect to specific team members to ask questions using the multiple contact information available on the contact page. The ease of access to these real estate professionals underscores why the company is renowned for its dedicated and efficient services. Kay Properties & Investments offers robust educational resources, including podcasts, blogs and webinars, providing investors with valuable insights into DST investments for 1031 exchanges. Benzinga considers the platform highly recommendable.
Kay Properties & Investments vs. Competitors
Kay Properties & Investments has a few competitors in the real estate market, including Blackstone and Blackrock. Kay Properties & Investments’ platform differs from these services by focusing on the tax-efficient DST 1031 properties investment that strictly targets accredited investors, rather than crowdfunding or other alternative investments which do not necessarily possess these tax advantages.
Kay's robust educational resources and a team of well-experienced real estate professionals are additional qualities to consider when comparing with other real estate platforms.
- Best For:Investors Seeking a 1031 Exchange for Tax Deferral & Access DST OpportunitiesVIEW PROS & CONS:securely through Kay Properties and Investments's website
- Best For:$100 Minimum InvestmentVIEW PROS & CONS:securely through Arrived Homes's website
If you're an accredited investor seeking a tax-smart real estate investing platform for your 1031 exchange DST investments, Kay Properties & Investments can be an ideal choice. The platform offers an impressive collection of DST property listings from many DST sponsors, which makes it flexible to choose an investment offering that suits your needs. Kay Properties is staffed by experienced real estate professionals who can provide guidance and advice during the investment process, helping you decide if the DST investment options available in today's market are ideal for your situation. The platform's excellent educational resources streamline learning for investors lacking robust knowledge of DST investments and 1031 exchanges. The company's efficiency and professionalism in service delivery are reflected in the customer testimonials, where words like smart, friendly and highly efficient were used to describe it.
Frequently Asked Questions
What is a DST 1031 exchange?
A Delaware Statutory Trust (DST) 1031 exchange is a tax-deferred investment strategy allowing real estate investors to exchange one investment property for a fractional interest in a trust, deferring capital gains taxes under Section 1031 of the Internal Revenue Code.
How does a Delaware Statutory Trust work?
A Delaware Statutory Trust (DST) pools funds from multiple investors to acquire real estate, and each investor receives a proportional interest. Income and tax benefits generated by the property are distributed among the investors, offering a way to diversify real estate holdings and potentially defer capital gains taxes through a 1031 exchange.
What is the downside of a DST?
One downside of a Delaware Statutory Trust (DST) is limited control for individual investors, as they typically have no influence over property management decisions. Additionally, liquidity can be limited, and investors may face challenges selling their fractional interests. As with all forms of investing in real estate there are rick factors including but not limited to that a loss of principal is possible, cash flow and distributions are not guaranteed and property values may go up and may go down.
*Past performance is no guarantee of future results. *Diversification does not guarantee returns and does not protect against loss. *Preferred return is not guaranteed and is subject to available cash flow. *These testimonials and reviews may not be representative of the experience of others. Please speak with your attorney and CPA before considering an investment. *All DST properties shown are Regulation D Rule 506(c) offerings. All Offerings are subject to availability. There can be no assurance that any DST properties and offerings will be available for purchase. *DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million exclusive of primary residence, and/or possessing an annual income of over $200,000, or $300,000 with a spouse and expects the same or greater for the current year) and accredited entities (generally described as an entity owned entirely by accredited investors and/or owning investments in excess of $5 million). Please check with a qualified CPA or attorney to determine if you are accredited.
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 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.
Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital, member FINRA, SIPC.