How To Safeguard Your Investment From COVID-19 And Ensure Higher Returns?
As the entire world is battling the current pandemic, financial worry escalates at a rapid pace. Whether stocks, bonds, or shares, monetary damage has been unfathomable in the last few weeks. In this time of hardship, investors are looking for all kinds of alternatives to ensure a regular flow of income. If you are lagging from others and haven’t planned a secure investment yet, you must decide before its too late.
Keeping the current situation in mind and the time that will take for the things to normalize, a 1031 exchange could be the most convenient and secure option at present. A 1031 exchange is an investment strategy that lets you defer capital gain taxes on the sale of an investment property. To qualify for this unique investment option, you must reinvest the entire sale proceeds in a like-kind property.
Generally, the IRS (Internal Revenue Service) gives you 45-days time to identify one or more replacement properties. However, at present, there are handsome chances that you might not be able to locate an ideal replacement property. Why? Because you cannot get on the street and identifying a property without stepping out of your home is next to impossible. This is where a DST investment can see you through your exchange.
A Delaware Statutory Trust or DST is a private governing trust that owns, manages, and sells real estate properties. DSTs have large investment properties in their portfolio. By investing in a DST, you secure a fixed share in one of its properties. In return, the DST distributes the profit among its beneficiaries every month. Therefore, if you have a non-performing asset that you wanted to let go long ago, now is the time. Or if you’re in the middle of your 1031 identification period, look nowhere else other than DSTs. As DSTs are prepackaged, a DST investment can be closed in as less as 3 days, and that too digitally.
Economic crisis or financial loss has long-term effects on a person’s life, especially if you’re an investor. That’s why you must always think ahead of time. Investors across the United States are looking up to 1031 Exchange to repair the damage, and we recommend you do the same. You can speak to one of our 1031 experts and discuss your expectations with them. You can also download our free 1031 property list to check the available property options. Change is the only constant, and whether good or bad, time will surely change as it’s been till now. Until we get back to normal, keep yourself and your family safe.