Real Estate Strategies: Understanding 1031 Exchanges, DSTs & REITs

In this episode of Only Finance, Minh sits down with Jeff Noblin from ExchangeRight for a conversation about real estate, 1031 exchanges, Delaware Statutory Trusts (DSTs), and Real Estate Investment Trusts (REITs). Together, they take a high-level look at some of the strategies and structures that real estate investors may encounter when considering what comes next for an investment property.

Minh and Jeff discuss how DSTs can be used in connection with 1031 exchanges and the circumstances in which investors may consider them. They also explore some of the differences between directly owning and managing real estate and investing in professionally managed real estate structures.

The conversation also covers the role of liquidity, diversification, and timing when thinking about real estate investments. Jeff explains how a DST may serve as one potential option or even a backup consideration during a 1031 exchange, depending on an investor's circumstances and objectives.

Minh and Jeff also discuss how DSTs and REITs can fit into different stages of a real estate strategy, including the concept of moving from a DST into a REIT through a 721 exchange. They touch on holding periods, liquidity considerations, tax deferral, and the importance of understanding the structure and available choices.

Tune in to hear Minh and Jeff break down 1031 exchanges, DSTs, REITs, and the different considerations that can come with real estate investing.