If you're looking for a good real estate investment to get involved in, you should learn about 1031 DST exchanges. These arrangements are great opportunities for many investors, and you might find that they're ideal for your situation after a bit of research.
The following are six big advantages investors can enjoy with 1031 DST exchanges.
They allow investors partial ownership of properties they couldn't afford to buy independently.
Properties available through 1031 DST exchanges are properties of high value. These investment-grade properties are often worth millions of dollars.
The average investor wouldn't be able to own such a property independently, but the 1031 DST arrangement makes partial ownership and the resulting benefits surprisingly accessible.
They provide an opportunity for passive investment income.
Probably the most attractive aspect of these arrangements is that they provide passive income. 1031 DST exchanges are especially appealing to retired individuals who want to make money passively so that they can enjoy their retirement.
They help to diversify the real estate and overall portfolio of an investor.
Investors understand the importance of diversifying one's portfolio. These exchanges are a great way to split investments. In fact, investments can easily be split between multiple DST properties thanks to the relative affordability of these investments.
They don't require the investor to be responsible for management tasks.
The 1031 DST exchange agreement makes it so that investors can make money off of real estate without having to function as landlords.
With this arrangement, all of these tasks are handled by experienced, professional management personnel. These managers keep properties in the best possible shape over time while bringing in rental income for everyone investing in the 1031 DST exchange.
They can lead to added distributions of income.
Being involved in a 1031 DST exchange doesn't just mean that an investor will own an asset that appreciates in value over time. It can also lead to regular income.
Regular distributions are possible and common once reserve amounts are met. Earnings are distributed to the beneficiaries on the exchange regularly whenever they are available.
Investors can take advantage of the opportunity without having to be approved for the mortgage loans on the properties in question.
Investors don't need to meet any requirements for the mortgage loan on the property. Only the DST needs to be liable for the mortgage loan. Inventors put funds toward their investment in the 1031 DST exchange, but they don't have to meet any loan requirements.