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Oct 27

6 Types of Delaware Statutory Trusts properties For Your Guaranteed Investment

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The Delaware statutory trust has become very common for holding assets. Choosing the right Delaware Statutory Trusts property for you is an important choice. You want the best location and a strong tenant, low vacancy rate, and affordable price. Here are different types of properties you can expect to find.

 

1. Multi-Family Apartments DST Properties

Multi-family apartments are a form of Delaware Statutory Trusts property that has recently been growing in popularity. Multi-family apartments are properties, which consist of two or more living units. Multi-family apartments (MFAs) are a form of investing that encompasses purchasing large properties and renting them out. DST properties enable smaller investors to own fractional dst real estate homes, who would otherwise not buy one. Multi-family DTS range from class A apartments in good condition to class B apartments that may need improvements.

Multi-family apartments are the most profitable types of properties for investors because it has the highest returns. It is best to purchase 3-4 units for each purchase. Properties with 4-6 units are preferable because they will be easier to manage. You can still make a profit by purchasing two or 3-unit properties provided you exercise discipline during turnover.

 

2. Medical Office DST Properties

Types of Delaware Statutory Trusts properties that physicians lease out are called Medical office DST properties. They are very secure investments because there is a stream of income every week from the leases. Hence, medical office DST apartments give the trust greater diversification for investing against losses.

Medical real estate is hot. For the most part, residential property is not. But there are many DST’s located inside of hospitals. These medical use DST’s are considered by investors to be almost as good as cash. With debt service mortgages available on these properties, they can keep their costs low. Thus, medical office DST properties occupied by medical professionals such as physicians, psychologists, physical therapists, radiologists, orthopedists, dermatologists, and others are attractive to landlords who can lease spaces at very competitive rates.

 

3. Industrial DST Properties

Industrial DST properties may comprise retail, office, flex, and light industrial properties. Industrial DST properties offer various income-producing spaces, including free-standing buildings, strip malls, and plazas. The ability to buy these investment properties using a Delaware Statutory Trust structure enhances the potential return on investment through the addition of special tax break incentives.

Industrial DST properties specifically allow investors to purchase income-producing properties without the use of their equity. Most Industrial DST properties tend to acquire properties in need of rehabilitation and improvement in their value.

 

4. Hotel DST Properties

Seeing the apparent advantages of a Delaware Statutory Trust (DST) for their businesses, many hospitality companies have opened DSTs for various types of properties. These DSTs can yield income and help defer income-tax liability.

Delaware Statutory trusts (DST) offer various planning ideas that mixed-use investors and real estate developers can utilize for hotel and resort group acquisitions. Delaware’s unique statutory trust statutes will protect your investment.

 

5. Self-Storage DST Properties

There are several types of self-storage properties that you can buy or sell in Delaware. Self-storage is one of the fastest-growing commercial real estate industry segments, especially in its convenience over businesses like U-Haul and Storage USA. The demand for freight containers, storage lockers, and other self-storage offerings to homes and businesses has never been greater.

 

6. Oil And Gas DST Properties

Delaware Statutory Trusts (DSTs) allow investors to participate in the oil and gas opportunity without incurring employment-related liabilities of the traditional general partner. A DST allows a general partner, or GP, to shift corporate risk to a corporate trustee while maintaining an ownership interest in the DST.

 

Conclusion

Industrial DST properties have grown in popularity amongst real estate investors over the last few years, and it’s easy to see why! In a saturated market, they provide a way for businesses to lower their commercial property tax rates while still getting access to the same amenities that traditional commercial real estate properties offer. Additionally, they have flexible liquidity, favorable tax treatment, can easily be managed remotely, attractive cash returns on investments, and purchase real estate in multiple jurisdictions. Delaware Statutory Trusts offer investors a way to hold property and other assets without other parties knowing their holdings making DSTs great for those looking to protect their privacy and other rights.

 

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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