Many of our clients have purchased DST properties as purely discretionary cash investments, even though they are not in a 1031 exchange. The reasons why investors will do this are many. Two of the main reasons that we will see are:
Clients that have exchanged with us into DST 1031 properties over the years will purchase DST properties as a cash investment due to wanting to continue to diversify out of the stock/bond markets as well as wanting to derive a tax-advantaged potential income stream.
Some clients will purchase DST properties via cash as a test run for 1031 exchanges in future. These clients like the idea of the DST 1031 but have not actually sold their buildings yet, so to help them build comfort with the DST 1031 they will make a cash investment prior to actually doing a large 1031 exchange. If you would like a list of DST properties available for accredited cash investors, please visit kpi1031.com and register for free access.