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Modern Real Estate Investing: The Delaware Statutory Trust
Modern Real Estate Investing introduces the nation to a new concept in real estate investment known as the Delaware Statutory Trust (DST). The DST is a synthesis of one hundred years of real estate, securities, and tax laws that provide an investment entity that allows the modern real estate investor to build a diversified portfolio of institutional grade real estate under protective securities regulations and enjoy the tax advantages of gain nonrecognition using IRC section 1031 like-kind exchanges. The book not only introduces the DST but also guides the reader through the investment process by providing perspective in the choosing of brokers, sponsors, and properties as well as a more in-depth analysis of the DST offering (John Harvey, CPA, MBT, author). The book provides a clear explanation of DST's and how they provide opportunities for smaller investors access to institutional properties otherwise not available to them, because of the large equity requirements and access to reasonable financing. The 1031 exchange is linked very nicely, explaining the DST opportunity for diversification in more than one investment that helps balance overall risk in the 1031 exchange. Trump tax plan is expertly explained and its impact on the DST structure. Book describes clear example of the tax savings of a 1031 exchange and the benefit of compounding on deferred taxes avoided at time sale. Good examples of dos and don'ts in the 1031 exchange (Kosmas G. Toskos, DST investor).
330 pages, Paperback
Published June 9, 2018
2 people are currently reading
250 people want to read
About the author
John Harvey
1 bookJohn Harvey is the firm’s owner and general securities principal. Mr. Harvey holds a Master of Business Taxation and a Bachelor of Science in Accounting from the University of Southern California Leventhal School of Accounting, consistently ranked in the top five US accounting schools. He began his career in 1989 with the Beverly Hills office of Ernst & Young as a tax consultant to high net worth celebrities including Johnny Carson, Janet Jackson, Jean-Claude Van Damme, Walter Matthau, and Larry Hagman. Mr. Harvey has been a licensed CPA since 1991 and has worked as a tax consultant for Price Waterhouse and as a Senior Manager with Deloitte & Touché in Los Angeles.
Mr. Harvey is a Registered Investment Adviser, General Securities Representative with Sandlapper Securities, LLC (Member FINRA/SIPC) and holds the following securities licenses, FINRA series 7, 24, 66 and 63 and offers Delaware Statutory Trust properties for investment through Sandlapper Securities, LLC. He is a licensed Real Estate Broker in the state of California and a member of the Real Estate Investment Securities Association, the Federation of Exchange Accommodators, and the National Association of Realtors.
Mr. Harvey is the top producer for Cornerstone and Sandlapper, assisting investors in the purchase of over $500 million in tenants-in-common and Delaware Statutory Trust real estate. These credentials, together with his business knowledge and real-world experience, allow the firm to offer in-depth real estate advice on Section 1031 exchange replacement properties with a view to the effects on income and estate taxation.
Harvey is fluent in three languages, coaches Little League baseball and youth football, and serves as a missionary for his church. He and his wife have three children and live in the Washington DC area with his corporate office in Orange County, California.
Most recently, Harvey authored the book Modern Real Estate Investing: The Delaware Statutory Trust, in which he shares his vast knowledge of the DST and IRC Section 1031.
For further information and for any questions he can be reached at info@cornerstoneexchange.com or by phone at (800) 781-1031 or visit the firm’s website at www.dstproperties1031.com.
Mr. Harvey is a Registered Investment Adviser, General Securities Representative with Sandlapper Securities, LLC (Member FINRA/SIPC) and holds the following securities licenses, FINRA series 7, 24, 66 and 63 and offers Delaware Statutory Trust properties for investment through Sandlapper Securities, LLC. He is a licensed Real Estate Broker in the state of California and a member of the Real Estate Investment Securities Association, the Federation of Exchange Accommodators, and the National Association of Realtors.
Mr. Harvey is the top producer for Cornerstone and Sandlapper, assisting investors in the purchase of over $500 million in tenants-in-common and Delaware Statutory Trust real estate. These credentials, together with his business knowledge and real-world experience, allow the firm to offer in-depth real estate advice on Section 1031 exchange replacement properties with a view to the effects on income and estate taxation.
Harvey is fluent in three languages, coaches Little League baseball and youth football, and serves as a missionary for his church. He and his wife have three children and live in the Washington DC area with his corporate office in Orange County, California.
Most recently, Harvey authored the book Modern Real Estate Investing: The Delaware Statutory Trust, in which he shares his vast knowledge of the DST and IRC Section 1031.
For further information and for any questions he can be reached at info@cornerstoneexchange.com or by phone at (800) 781-1031 or visit the firm’s website at www.dstproperties1031.com.
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August 9, 2018
Real Estate Investing and the DST Explained!
John Harvey’s exceptional new book, Modern Real Estate Investing: The Delaware Statutory Trust, made me wish I had the extra cash laying around to take advantage of the Delaware Statutory Trust. This concept, little known to most Americans, is an outstanding way to invest into real estate without the hassles of management, and with the investor protections of a security.
What is a security, you may ask? (I had to look that up!). If you’ve ever invested in stocks, you have securities. Well, the Delaware Statutory Trust now lets you invest money in real estate with the due diligence and full disclosure that you would expect from a security. But how does this work? Sponsors make available large properties, such as multi-tenant apartment buildings, single-tenant triple-lease properties, office buildings, warehouses, retail shopping malls (shopping malls?), restaurants and hotels (I’ve always wanted to own a piece of a place on the ocean…). Affordability hasn’t always been there for most people, but the really amazing thing is you might already have the investment! A lot of Americans already own rental property, usually in the form of a second home they are leasing out. But there are problems, such as leaky toilets and roof repair, and maybe a tenant who doesn’t keep up their rent. Now, however, you can sell that property and roll over 100% of the profit into a DST investment property with absolutely no tax penalties. Then, you just sit back and enjoy the income cash flow.
It’s probably not quite that simple, and there are stipulations, such as you must be an accredited investor and have a certain amount of net worth. But it’s an amazing opportunity, which I hope I can take advantage of some day.
Harvey explains all of this in detail in his book, as well as gives a fair and balanced view of the risks and benefits.
Harvey’s reputation as a solid financial advisor is well-earned. With thirty-years of experience in the US, Russia and Italy, he comes to the table with knowledge and an impeccable record from FINRA. He also worked as a tax consultant to high-net-worth celebrities such as Janet Jackson, Jean-Claude Van Damme, Johnny Carson and others. He owns his own firm in Orange, California, and gives back to others by serving as a missionary in his church and coaching his kids’ sports teams.
You might have a lot of money to invest, or you might have as little as $25K to roll over. Either way, I’d pick up a copy of Modern Real Estate Investing and see if you can take advantage of the amazing tax shelter of the DST and 1031 that is available to us. Read the book, and then give Harvey a call.
John Harvey’s exceptional new book, Modern Real Estate Investing: The Delaware Statutory Trust, made me wish I had the extra cash laying around to take advantage of the Delaware Statutory Trust. This concept, little known to most Americans, is an outstanding way to invest into real estate without the hassles of management, and with the investor protections of a security.
What is a security, you may ask? (I had to look that up!). If you’ve ever invested in stocks, you have securities. Well, the Delaware Statutory Trust now lets you invest money in real estate with the due diligence and full disclosure that you would expect from a security. But how does this work? Sponsors make available large properties, such as multi-tenant apartment buildings, single-tenant triple-lease properties, office buildings, warehouses, retail shopping malls (shopping malls?), restaurants and hotels (I’ve always wanted to own a piece of a place on the ocean…). Affordability hasn’t always been there for most people, but the really amazing thing is you might already have the investment! A lot of Americans already own rental property, usually in the form of a second home they are leasing out. But there are problems, such as leaky toilets and roof repair, and maybe a tenant who doesn’t keep up their rent. Now, however, you can sell that property and roll over 100% of the profit into a DST investment property with absolutely no tax penalties. Then, you just sit back and enjoy the income cash flow.
It’s probably not quite that simple, and there are stipulations, such as you must be an accredited investor and have a certain amount of net worth. But it’s an amazing opportunity, which I hope I can take advantage of some day.
Harvey explains all of this in detail in his book, as well as gives a fair and balanced view of the risks and benefits.
Harvey’s reputation as a solid financial advisor is well-earned. With thirty-years of experience in the US, Russia and Italy, he comes to the table with knowledge and an impeccable record from FINRA. He also worked as a tax consultant to high-net-worth celebrities such as Janet Jackson, Jean-Claude Van Damme, Johnny Carson and others. He owns his own firm in Orange, California, and gives back to others by serving as a missionary in his church and coaching his kids’ sports teams.
You might have a lot of money to invest, or you might have as little as $25K to roll over. Either way, I’d pick up a copy of Modern Real Estate Investing and see if you can take advantage of the amazing tax shelter of the DST and 1031 that is available to us. Read the book, and then give Harvey a call.
August 8, 2018
A breath of fresh air in the investment arena – a unique guide to safe real estate investing
At the most propitious moment in time MODERN REAL ESTATE INVESTING opens the window on sensible, practical, secure and advantageous information on wise investing. Just when the current economic status as presented by the media seems to be tenuous at best, authors John Harvey and his associates introduce the concept of DST (Delaware Statutory Trust) as a means for the private investor to build and preserve wealth within a regulated investment environment using institutional-grade real estate on a tax-deferred basis while enjoying tax sheltered passive income. The presentation is fascinating as well as accessible and DST is only one part of this important new guide to safe investing. A must read for a very wide audience!
At the most propitious moment in time MODERN REAL ESTATE INVESTING opens the window on sensible, practical, secure and advantageous information on wise investing. Just when the current economic status as presented by the media seems to be tenuous at best, authors John Harvey and his associates introduce the concept of DST (Delaware Statutory Trust) as a means for the private investor to build and preserve wealth within a regulated investment environment using institutional-grade real estate on a tax-deferred basis while enjoying tax sheltered passive income. The presentation is fascinating as well as accessible and DST is only one part of this important new guide to safe investing. A must read for a very wide audience!
August 23, 2018
If you’re an investor interested in what is called “fractional real estate ownership,” you will find no better up to date, step-by-step guide than “Modern Real Estate Investing: The Delaware Statutory Trust by John Harvey (CPA, MBT), Trawnegan Gall and David Kangas. These three investment experts have more than a decade of experience in the real estate private placement industry and are well equipped to explain some of the most arcane and specific information in language and concepts in ways that are easy to understand and comprehend. Simply by following this guide, you can better understand all aspects of The Delaware Statutory Trust as a “tried and tested investment vehicle” which the authors believe is “best equipped to allow the private investor access to institutional real estate as never before.” Complete with a breakdown of market forces over the past decade and an analysis of the how the real estate market has evolved to cope with rising costs and other economic changes. In their forward, author John Harvey states that this guide is the first to explain DST real estate investing “under the new tax provisions of the 2017 Tax Cuts and Jobs Act, making this primer timely indeed.
“Modern Real Estate Investing” is divided into four major sections. First, the authors introduce the reader to the very concept of “alternative real estate investing” using the DST offering. For example, the authors explain exactly how individuals can now “join with other accredited investors” to own properties that have in the past been financially inaccessible. As it states, “A fractional ownership interest provides the investor with an undivided fractional ownership interest in the entire property or properties.” This fractional owner is made aware of projected cash flow, potential appreciation and tax-deductible depreciation. This allows co-ownership with other investors, but not the right of property usage or possession. A DST investor can gain co-ownership for as little as $25,000 (or $100,000 for exchanges) in much larger “commercial institutional-grade real estate with values up to a million dollars. Not only that, but the smaller investor in a DST interest may qualify for “capital gain non-recognition under Section 1031 of the Internal Revenue Code. Other advantages of a DST interest include (to name just a few): “stabilized monthly income, greater diversification, limited liability protection, more favorable financing terms, lower transaction and administrative costs and tax-deferred capital gains.”
The second section is a virtual road map, complete with graphs and other illustrations, to the actual DST offering. This is intended to provide a better appreciation and perspective to “an otherwise unfamiliar and uncharted industry.” The authors provide detailed information and analysis as they offer “Insight into choosing trusted business partners.” This section is intended to increase the prospective investors’ confidence in all aspects of DST. Their goal is “ultimately empowering the private real estate investor to utilize all aspects of the 1031 exchange tax deferral” so that they can build their own well-diversified personal portfolio of institutional-grade real estate.
Section three is dedicated to “analyzing the DST offering.” The authors believe that real estate investing is more about data analysis than the art of the deal and explain each and every nuance of that analysis. Every investor is encouraged to utilize the abundance of data and information in the full-disclosure private placement memorandum. This, it is explained, will better enable them to “select properties that minimize risks and meet investment objectives.”
The fourth and final section of this guide offers an introduction to “other alternative real estate structures, namely publicly registered but privately traded REITS and limited partnerships (funds).” Although many of these do not qualify for 1030 tax-deferred exchange, they do give investors even greater diversification without exposure to fluctuations and volatility of financial markets. his latter effect can be accomplished “utilizing non-correlated” real estate investments.
The authors strive throughout this guide to give a fair and balanced argument in favor of this new investment strategy and do a valuable job balancing the pros and cons and well as opportunities with associated risks. An entire chapter is spent discussing potential risks associated with DST offerings.
Each new year brings new opportunities for prospective real estate investors, and “Modern Real Estate Investing” is an integral guide for anyone interested in this topic.
“Modern Real Estate Investing” is divided into four major sections. First, the authors introduce the reader to the very concept of “alternative real estate investing” using the DST offering. For example, the authors explain exactly how individuals can now “join with other accredited investors” to own properties that have in the past been financially inaccessible. As it states, “A fractional ownership interest provides the investor with an undivided fractional ownership interest in the entire property or properties.” This fractional owner is made aware of projected cash flow, potential appreciation and tax-deductible depreciation. This allows co-ownership with other investors, but not the right of property usage or possession. A DST investor can gain co-ownership for as little as $25,000 (or $100,000 for exchanges) in much larger “commercial institutional-grade real estate with values up to a million dollars. Not only that, but the smaller investor in a DST interest may qualify for “capital gain non-recognition under Section 1031 of the Internal Revenue Code. Other advantages of a DST interest include (to name just a few): “stabilized monthly income, greater diversification, limited liability protection, more favorable financing terms, lower transaction and administrative costs and tax-deferred capital gains.”
The second section is a virtual road map, complete with graphs and other illustrations, to the actual DST offering. This is intended to provide a better appreciation and perspective to “an otherwise unfamiliar and uncharted industry.” The authors provide detailed information and analysis as they offer “Insight into choosing trusted business partners.” This section is intended to increase the prospective investors’ confidence in all aspects of DST. Their goal is “ultimately empowering the private real estate investor to utilize all aspects of the 1031 exchange tax deferral” so that they can build their own well-diversified personal portfolio of institutional-grade real estate.
Section three is dedicated to “analyzing the DST offering.” The authors believe that real estate investing is more about data analysis than the art of the deal and explain each and every nuance of that analysis. Every investor is encouraged to utilize the abundance of data and information in the full-disclosure private placement memorandum. This, it is explained, will better enable them to “select properties that minimize risks and meet investment objectives.”
The fourth and final section of this guide offers an introduction to “other alternative real estate structures, namely publicly registered but privately traded REITS and limited partnerships (funds).” Although many of these do not qualify for 1030 tax-deferred exchange, they do give investors even greater diversification without exposure to fluctuations and volatility of financial markets. his latter effect can be accomplished “utilizing non-correlated” real estate investments.
The authors strive throughout this guide to give a fair and balanced argument in favor of this new investment strategy and do a valuable job balancing the pros and cons and well as opportunities with associated risks. An entire chapter is spent discussing potential risks associated with DST offerings.
Each new year brings new opportunities for prospective real estate investors, and “Modern Real Estate Investing” is an integral guide for anyone interested in this topic.
August 9, 2018
A comprehensive guide to utilizing DST in modern real estate investing, written by experts, especially for you.
The authors of this book have over a decades experience in the real estate private placement industry, and they have also asked several trusted colleagues from real estate sponsors and attorneys to qualified intermediaries to contribute in various ways. In doing this they hope to achieve their goal of not only introducing the DST concept for real estate investing to all, but also to provide for the reader a balanced view from the whole industry.
So what is DST?
DST (Delaware Statutory Trust) is a trust formed under Delaware statutory law which allows a person to own a fraction of a piece of real estate as an investment. This is made possible through a securities private placement offering, and it gives the individual the opportunity to join with other accredited investors in owning a real estate that they would not individually have been able to afford.
This book provides an extensive guide for everyone, from the beginner to the more experienced investor, and the information is divided into four section. The first gives a comprehensive introduction to alternative real estate investing using DST, with the aim of encouraging private investors to consider private placement investing.
Then in the second section, DST is looked at in more detail for those who are unfamiliar with the concept, and this section also provides the reader with insider information on how to choose trusted business partners, whether they be qualified intermediaries, sponsors or brokerages. The authors hope that this information will give private real estate investors the confidence to utilize the effectiveness of § 1031 exchange tax deferral and expand their personal portfolio of institutional grade real estate.
For the experienced investor DST is analysed and greater insight is given as the book progresses. This should aid the more seasoned investor in their selection of properties with a view to minimising risk and meeting their investment aims. Examples are given of real investment portfolios, and explanations of each provided to enable the reader to see the real potential of this type of investing.
At the end of the book in order to provide a balanced viewpoint, the authors have provided information on the alternatives to DST, and discuss their individual pros and cons. Because this is a high risk industry, throughout, the authors have tried to provide fair and balanced information and there is a separate chapter committed to potential risks.
This book is essential reading for anyone who is considering DST. The wealth of experience provided by the authors and contributors, provides invaluable information, presented in a way which is easy to read and understand. A very useful guide which enables the reader to make informed decisions on whether or not this type of real estate investing is for them.
The authors of this book have over a decades experience in the real estate private placement industry, and they have also asked several trusted colleagues from real estate sponsors and attorneys to qualified intermediaries to contribute in various ways. In doing this they hope to achieve their goal of not only introducing the DST concept for real estate investing to all, but also to provide for the reader a balanced view from the whole industry.
So what is DST?
DST (Delaware Statutory Trust) is a trust formed under Delaware statutory law which allows a person to own a fraction of a piece of real estate as an investment. This is made possible through a securities private placement offering, and it gives the individual the opportunity to join with other accredited investors in owning a real estate that they would not individually have been able to afford.
This book provides an extensive guide for everyone, from the beginner to the more experienced investor, and the information is divided into four section. The first gives a comprehensive introduction to alternative real estate investing using DST, with the aim of encouraging private investors to consider private placement investing.
Then in the second section, DST is looked at in more detail for those who are unfamiliar with the concept, and this section also provides the reader with insider information on how to choose trusted business partners, whether they be qualified intermediaries, sponsors or brokerages. The authors hope that this information will give private real estate investors the confidence to utilize the effectiveness of § 1031 exchange tax deferral and expand their personal portfolio of institutional grade real estate.
For the experienced investor DST is analysed and greater insight is given as the book progresses. This should aid the more seasoned investor in their selection of properties with a view to minimising risk and meeting their investment aims. Examples are given of real investment portfolios, and explanations of each provided to enable the reader to see the real potential of this type of investing.
At the end of the book in order to provide a balanced viewpoint, the authors have provided information on the alternatives to DST, and discuss their individual pros and cons. Because this is a high risk industry, throughout, the authors have tried to provide fair and balanced information and there is a separate chapter committed to potential risks.
This book is essential reading for anyone who is considering DST. The wealth of experience provided by the authors and contributors, provides invaluable information, presented in a way which is easy to read and understand. A very useful guide which enables the reader to make informed decisions on whether or not this type of real estate investing is for them.
August 10, 2018
Do you want to invest in real estate but don’t have the time to maintain a property? Are you interested in diversifying your portfolio without having to worry about taxes? Then Modern Real Estate Investing is the book for you. At well over 300 pages, it’s a dense read, but you will find everything you need to know before diving into the world of real estate investment. More specifically, you will find a comprehensive guide to the Delaware Statutory Trust (DST), a tax-sheltered investment which will yield a truly passive income.
This book, written by licensed general securities representatives from Cornerstone Real Estate Investment Services, tells readers about everything from what a DST is to how it works. The writers leave nothing out; the good, the bad, and the ugly about the trust is included to help readers decide if the DST is the right investment for them. Case studies, charts, tables, and other visual aids help readers to better understand the complex concepts and financial and legal jargon sprinkled throughout the text. Best of all, appendices and a list of resources at the end of the book give readers a starting point for further, self-conducted research on the subject.
Because of the topic, the writing is rather dry. The jargon can be a bit overwhelming when there aren’t visual aids or case studies, and the experience definitely takes some effort on the reader’s part. Still, such matters cannot be avoided in books about investment and finances. Overall, the writers do well in explaining each concept thoroughly and trying to make the material accessible, which helps to make up for the more challenging or boring sections.
Career people looking into real estate investing should definitely check out this book. It will save them a lot of research time and point them towards a form of real estate investment which not many people know about, let alone consider. Seeing as most career people don’t have the time to maintain a property themselves, the DST could be their best investment option, and I don’t think there’s a better guide to the DST than Modern Real Estate Investing.
All in all, this book is thorough, informative, and very useful. While not everyone will find this book useful as not everyone has the money to invest in a DST, those who do need to read this book before making any decisions. It’s a time commitment, but, in the long run, it could help you make better decisions and more money than walking into an investment firm blindly.
This book, written by licensed general securities representatives from Cornerstone Real Estate Investment Services, tells readers about everything from what a DST is to how it works. The writers leave nothing out; the good, the bad, and the ugly about the trust is included to help readers decide if the DST is the right investment for them. Case studies, charts, tables, and other visual aids help readers to better understand the complex concepts and financial and legal jargon sprinkled throughout the text. Best of all, appendices and a list of resources at the end of the book give readers a starting point for further, self-conducted research on the subject.
Because of the topic, the writing is rather dry. The jargon can be a bit overwhelming when there aren’t visual aids or case studies, and the experience definitely takes some effort on the reader’s part. Still, such matters cannot be avoided in books about investment and finances. Overall, the writers do well in explaining each concept thoroughly and trying to make the material accessible, which helps to make up for the more challenging or boring sections.
Career people looking into real estate investing should definitely check out this book. It will save them a lot of research time and point them towards a form of real estate investment which not many people know about, let alone consider. Seeing as most career people don’t have the time to maintain a property themselves, the DST could be their best investment option, and I don’t think there’s a better guide to the DST than Modern Real Estate Investing.
All in all, this book is thorough, informative, and very useful. While not everyone will find this book useful as not everyone has the money to invest in a DST, those who do need to read this book before making any decisions. It’s a time commitment, but, in the long run, it could help you make better decisions and more money than walking into an investment firm blindly.
September 20, 2018
Every Serious Real Estate Investor Should Read This Book
Modern Real Estate Investing: The Delaware Statutory Trust by John Harvey is a serious book aimed squarely at serious investors with real estate gains to shelter. Spoiler alert - this book is not light reading!
Harvey’s book lays the structure for implementing the Delaware Statutory Trust, or DST, an investment concept that allows an individual to join with other accredited investors to own investment-grade real estate that would be otherwise out of reach. In other words, with an investment as low as $25,000 you could own part of a stable, low-risk, well-vetted commercial property worth up to $100 million.
The DST also allows moderate investors to build wealth by using tax deferred exchanges. To quote from the book, “According to Internal Revenue Code 1031, an investor can defer capital gains tax and depreciation recapture by reinvesting the proceeds from the sale of real property into replacement property, thus preserving significant wealth in their estate…”
You would benefit from this book, for example, if you own a second home as an income property but are tired of dealing with maintenance, tenants or other problems. You could sell that home and put the proceeds into a DST, investing in larger properties, some with national names. The bottom line is that you can get passive and diversified income in the 6-7% range - tax deferred.
John Harvey is well qualified to tackle this complex investment topic. He was a tax consultant to Hollywood’s elite, representing high-net-worth celebrities including Walter Matthau, Johnny Carson, Janet Jackson, Larry Hagman and Jean-Claude Van Damme, and others. Harvey is clearly an authority on DST. He has conducted extensive research on the topic, and implements DST’s in his own practice.
As I said, this is not light reading. It’s detailed, authoritative, and densely packed with useful information. It is by no means a vacation beach read, but for the right person who wants really understand how to shelter real estate gains using legal methods, this book is for you.
Modern Real Estate Investing: The Delaware Statutory Trust by John Harvey is a serious book aimed squarely at serious investors with real estate gains to shelter. Spoiler alert - this book is not light reading!
Harvey’s book lays the structure for implementing the Delaware Statutory Trust, or DST, an investment concept that allows an individual to join with other accredited investors to own investment-grade real estate that would be otherwise out of reach. In other words, with an investment as low as $25,000 you could own part of a stable, low-risk, well-vetted commercial property worth up to $100 million.
The DST also allows moderate investors to build wealth by using tax deferred exchanges. To quote from the book, “According to Internal Revenue Code 1031, an investor can defer capital gains tax and depreciation recapture by reinvesting the proceeds from the sale of real property into replacement property, thus preserving significant wealth in their estate…”
You would benefit from this book, for example, if you own a second home as an income property but are tired of dealing with maintenance, tenants or other problems. You could sell that home and put the proceeds into a DST, investing in larger properties, some with national names. The bottom line is that you can get passive and diversified income in the 6-7% range - tax deferred.
John Harvey is well qualified to tackle this complex investment topic. He was a tax consultant to Hollywood’s elite, representing high-net-worth celebrities including Walter Matthau, Johnny Carson, Janet Jackson, Larry Hagman and Jean-Claude Van Damme, and others. Harvey is clearly an authority on DST. He has conducted extensive research on the topic, and implements DST’s in his own practice.
As I said, this is not light reading. It’s detailed, authoritative, and densely packed with useful information. It is by no means a vacation beach read, but for the right person who wants really understand how to shelter real estate gains using legal methods, this book is for you.
December 30, 2018
Modern Real Estate Investing is a comprehensive (330+ pages, 24 chapters) guide for the serious investor, whether one is just starting out or has been investing in real estate for a while. It is not light reading but actually is written in clear and logical language that readers who know nothing about investing in real estate (like me!) can understand. It is a book that defines and illuminates the Delaware Statutory Trust (DST), which is an investment principle that enables an individual to combine with other accredited investors to own high-end real estate that as an individual investor would be out of reach. The authors begin by introducing the DST with discussions on the vision and structure, its advantages and risks and continue with an industry overview, how to choose a broker and a sponsor, and what the closing process may look like. Finally, there are chapters that deal with analyzing the DST offering with chapters on debt structure, diversification strategies, and tax matters. The authors also have included appendices discussions on Revenue Ruling and Revenue Procedure and have included a number of ways to contact them for further information and answers to questions. This book is an excellent overview and a close-up of a relatively new concept in real estate investment.
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