Kay Properties Matt McFarland and Chay Lapin Offer an Overview on the 721 Exchange

Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances of the Delaware Statutory Trust (DST) investment process.   Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate, and more.   The kpi1031.com platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments.   In this week's episode, Vice President Matt McFarland sits down with President Chay Lapin to talk about the 721 exchange and how it can benefit their investors. There are both pros and cons to the 721 exchange that Chay outlines in this podcast episode. Listen in for more to find out if this is an option that makes sense for your portfolio.    Key Takeaways: [1:05] Risks and disclosures. [4:05] A little bit about Kay properties. [4:45] Matt introduces Chay and today's topic. [5:35] What is a 721 exchange? [8:15] What are the benefits of a 721 exchange?  [11:50] REIT or 721 funds allow investors to exchange their ownership interest for operating partnership units in the real estate investment fund. [12:20] You have to do a 1031 exchange first into a DST, and then you can do a 721 exchange to exit out of the DST. [13:25] What are some of the disadvantages of a 721 exchange? [16:20] There are some tax considerations when doing this exchange that you should consult with a CPA on. [19:25] What's the difference between a DST and a REIT? [21:00] What other considerations should investors be aware of when dealing with a 721 exchange? [27:30] Diversification is key here. [31:40] The real estate asset should be first. Second should be the way it is structured. [34:40] Although you enter the 720 exchanged debt free, you can be moved into a highly-leveraged asset in an UPREIT.     Resources Website: Covecapitalinvestments.com   Website: https://www.kpi1031.com/ Call Kay Properties at 855-899-4597 Meet the Kay Properties Team: kpi1031.com/meet-our-team   About Kay Properties and www.kpi1031.com    Securities offered through FNEX Capital member FINRA, SIPC. Potential returns and appreciation are never guaranteed and loss of principal is possible.  Please speak with your CPA and attorney for tax and legal advice.