How Investors Can Use Delaware Statutory Trust Properties to Replace Debt in a 1031 Exchange
Presented by Kay Properties & Investments, LLC
Navigating the nuances of 1031 exchanges can be confusing for real estate investors, especially when it comes to understanding the concept of debt replacement.
Many investors mistakenly believe that they must replace the exact amount of debt from their relinquished property to qualify for the tax deferral benefits of a 1031 exchange. However, the IRS regulations primarily focus on the value replacement, not necessarily the debt itself. This is where Delaware Statutory Trusts (DSTs) can provide investors a compelling solution.
DSTs provide a streamlined, efficient alternative that can simplify the process of meeting the exchange requirements while also potentially removing the burden of having to qualify for financing.
Kay Properties’ President, Chay Lapin, considered one of the nation’s experts on 1031 exchange and DST investment strategies, will explain specific strategies investors can explore when looking to replace debt in their 1031 exchanges, including some practical benefits and ease of use that DSTs can bring to the table.
- What are the 1031 Exchange Requirements for Replacing Debt?
- How to Avoid a “Boot” in a 1031 Exchange
- The Value of Pre-Arranged Debt in Delaware Statutory Trusts
- Types of Leverage (Loan-to-Value) in DST Properties
- What are Some Specific Hypothetical Examples of Debt-Replacement Strategies?
GUEST SPEAKER: Chay Lapin, President of the Kay Properties & Investments, LLC
Chay Lapin is the President of Kay Properties & Investments. With an extensive knowledge of Delaware Statutory Trusts, he continues to guide the firm’s success, helping complete over $30 billion in investments. Mr. Lapin’s insights are often in top industry publications, including Yahoo Finance, The Commercial Observer, and BizNow. He was a top-ranked U.S. water polo athlete and represented the USA in the 2012 London Olympic Games as part of the U.S. Men’s National Water Polo Team.
