Our prospective 1031 Exchange / DST clients come to us with all sorts of goals. For some it is retiring for others a desire to stop managing property.
Yet for others it’s more simple: cash.
Needing cash for another property, business investment or personal goal. Selling an investment property seems to make sense. What they forget is the tax bill. Seeking tax deferral, they show up at our door looking for a solution.
Very often DST isn’t it. Instead cash out refinance is the move.
You can not remove cash from a 1031 exchange / DST and defer the full amount of tax you may owe. Think about what 1031 exchange / DST is for. It’s a life change, it’s a tax deferral tool and it’s a planning tool. If your goal is short term cash, cash out refinance of your current property may be a better move. Let’s talk DST when your goals align with the solution.