Evaluating 5 Best Delaware Statutory Trust Companies

Investors must search for the best Delaware statutory trust (DST) companies to maximize benefits. These firms specialize in streamlined, tax-efficient real estate assets, enabling you to enjoy passive income with limited risk and liability.

A top DST partner empowers you to achieve robust asset diversification while delivering ongoing support in meeting your long-term wealth objectives. Expertly curated and high-quality offerings remove market ambiguity and enable you to make more informed and confident financial decisions.

What Is a Delaware Statutory Trust?

A DST is a legal entity under Delaware law that allows multiple parties to own fractional interests in real estate assets. Co-investors often make minimum investments of $100,000 and up to $20 million for multifamily complexes, $15 million for supermarkets or $5 million for pharmacies.

The investors — known as beneficial owners — share the income and appreciation of the investment, while the trust administrator assumes all property management responsibilities. The DST administrator or sponsor may outsource operational oversight to an experienced property management company, which usually handles leasing, maintenance, tenant relations and other functions. This allows beneficial owners to remain passive participants, reaping returns without being actively involved.

DSTs are popular for 1031 exchange transactions because they meet the Internal Revenue Service’s requirements for like-kind property. Under this rule, investors can defer capital gains taxes when they sell or reinvest in real estate. The right partner will help you navigate the complex tax deferral provisions for this.

5 Best Delaware Statutory Trust Companies

A DST is an optimal investment strategy for those looking to diversify their portfolio through tax-deferred, hassle-free real estate ownership. With opportunities aplenty, coordinating with experts in these types of opportunities and 1031 exchanges is crucial for successful transactions. The following firms are among the best DST companies for streamlined estate planning that requires minimal hands-on involvement.

1.    Sera Capital

Sera Capital helps you pursue DSTs within the context of 1031 exchanges, estate planning and strategic portfolio transitions. It is a fee-only fiduciary with a client-focused philosophy that prioritizes your goals and financial well-being.

Its associates are adept at DST due diligence, portfolio diversification, and cross-functional legal, tax and estate advisement. Clients most benefit from its transparent fee structures, educational resources and digital platform that allows you to monitor your investment in real time.

Call Sera Capital for a free 20-minute consultation to learn more about its proactive and personalized solutions. As an independent, fee-only fiduciary, you can expect a no-pressure partnership with professionals who look out for your best interests.

2.    Realized 1031

Realized 1031 is an ideal DST adviser that utilizes technology for DST selection and analytics. Its comprehensive marketplace gives clients access to 30 to 50 DST options from over 45 sponsor businesses, tailored to their specific financial goals, risk tolerance and timelines. Some of its key features include an advanced digital platform for deep-diving into educational resources, analyzing and tracking DST options, and seeking personalized guidance throughout the exchange process.

The Realized 1031 team assists with tax planning while cross-coordinating with legal and financial experts to maximize tax deferrals and income. Through robust reporting tools and performance monitoring, you can seamlessly manage your DST holdings.

3.    1031 Exchange Place

1031 Exchange Place is a full-service intermediary that provides superior hands-on support and curated offerings for investors seeking tax-deferred DST solutions. The firm walks clients through each stage of the 1031 exchange process, delivering one-to-one consultations and personalized recommendations.

Overall, you benefit from streamlined transactions for a smooth and compliant exchange. Its DST offerings include high-quality, institutional-grade real estate options, giving you ample opportunities for portfolio diversification, lower risk and the rewards of passive income.

It also equips you with the knowledge to make informed decisions through its educational resources and access to experienced associates. What makes 1031 Exchange Place stand out is its knowledge of local markets, which helps ensure the most lucrative investments.

4.    Inland Investments

Inland Investments is a full-service intermediary widely recognized for its DST and 1031 strategies. Its associates leverage decades of experience to deliver institutional-quality real estate options to investors, including multifamily, industrial, health care, retail and self-storage properties.

This firm offers personalized support, from evaluating DST offerings to assisting with complex tax deferrals. Its professionals work alongside financial advisers, tax experts and clients to ensure each investment aligns with the individual’s goals.

Inland Investments is especially committed to transparency. Its team will provide comprehensive property reports, performance updates and resources to ensure you make the most informed decisions. You can use its online calculator to estimate the potential tax deferral from a 1031 exchange versus a taxable property sale.

5.    Passco Companies

Passco Companies is a well-established DST sponsor that specializes in core-market properties. It delivers turnkey, thoroughly vetted investment opportunities in the real estate landscape that meet the requirements of 1031 exchanges.

The firm has worked with over 7,000 investors and has achieved $8 billion in total acquisitions. Its brokers and registered investment advisers are experts in the purchase and management of commercial and multifamily real estate, from location selection to quality tenants.

With Passco Companies, clients are guaranteed transparency, due diligence and alignment with their financial goals. The entity has a strong track record for premium and well-managed properties that maximize income growth while minimizing risk.

Reshaping the Landscape of Passive Real Estate Investing

By choosing a reputable DST sponsor, you position yourself for sustainable growth while reducing high up-front costs and some of the hassle of owning real estate. The best DST companies demonstrate the utmost professionalism, transparency and expertise to ensure you receive steady, passive income through 1031 exchanges.