A 1031 exchange (named after Section 1031 of the Internal Revenue Code) allows real estate investors to defer capital gains taxes by reinvesting the proceeds from a property sale into a "like-kind" replacement property. Rather than paying taxes at the time of sale, the gain is deferred — potentially indefinitely, or until heirs receive a stepped-up basis.

A DST is a legal entity that holds title to investment real estate — such as apartment complexes, medical offices, industrial warehouses, or retail properties. As a DST investor, you own a fractional interest in professionally managed, institutional-quality real estate. DSTs qualify as like-kind replacement property under IRC Section 1031, making them a popular choice for investors looking to defer taxes while transitioning to passive ownership.

A 721 UPREIT (Umbrella Partnership Real Estate Investment Trust) allows an investor to contribute property — or DST interests — into an operating partnership of a REIT in exchange for operating partnership units. This can provide additional liquidity options, portfolio diversification, and continued tax deferral. It's often used as a follow-on strategy after a 1031 exchange into a DST.

Two critical deadlines apply once your property sells: you have 45 calendar days to formally identify potential replacement properties, and 180 calendar days to close on the replacement property. These timelines are strict and cannot be extended, which is why having an experienced advisory team in place before your sale closes is essential.

As a fee-only registered investment adviser, we charge a transparent advisory fee for our 1031 exchange guidance. We do not earn commissions from DST sponsors, broker-dealers, or product manufacturers. This means our recommendations are free of the conflicts of interest that can arise in commission-based models. We'll discuss the exact fees you'll pay during our initial consultation.

Most DST and UPREIT offerings are structured as private placements under SEC Regulation D and are available only to accredited investors. Generally, this means an individual net worth exceeding $1 million (excluding primary residence) or annual income exceeding $200,000 ($300,000 joint) in each of the last two years. We can help determine your eligibility during our conversation.