Step 1
1031 Exchanges & DST in partnership with Mirador Capital Partners
Selling investment property outright may result in:
Capital gains taxes
Depreciation recapture taxes
Reduced reinvestment capital
Lower purchasing power for future investments
A properly structured 1031 exchange may:
Defer capital gains taxes
Preserve 100% of reinvestment equity
Keep more capital invested in real estate
Support long-term income and return potential
Step 1
The contract must indicate the investor's intent to complete a 1031 exchange prior to closing.
Step 2
At closing, the sale proceeds are transferred to a Qualified Intermediary (QI).
Step 3
Replacement property must be identified within 45 calendar days after the closing of the relinquished property.
Step 4
The replacement property must be acquired within the full 180-day exchange period.
Replacement property must be acquired within 180 days of the original sale.
DSTs are designed to provide passive income, with sponsors handling all property management, accounting, reporting, and investor services.
DSTs may provide exposure to multiple properties, locations, asset classes, tenants, industries, lease terms, and debt terms.
DSTs may provide liability protection similar to LLC ownership structures while shielding investors from personal liability.
Because DST offerings are typically structured before closing, they may help investors complete a 1031 exchange within required deadlines.
Common Challenges of Sole Ownership:
Less diversification
Full management responsibilities
Difficulty finding replacement properties that fit requirements
Difficulty identifying and closing within exchange deadlines
Additional liability and lender recourse
Limited to one individual's investment capital
Limited geographic and asset class diversification
Potential Advantages of DST Ownership:
Diversification across portfolios and properties
Passive ownership structure
Customizable investment amount
Faster closings (1-3 days)
Limited liability and non-recourse financing
Access to institutional-quality real estate
This strategy may be a fit for investors who:
