I don’t know about you, but for me managing rental properties is a real pain. That’s why as a 1031 Exchange professional, I was so pleased to learn about Deferred Sales Trusts. These trusts eliminate the need to purchase more investment real estate during a 1031 Exchange, and allow us to invest in other ways that create income without the nuance of rental property management.
Deferred Sales Trusts create a contract between the client and an intermediary, the proceeds are invested by said intermediary, income from those investments can be received by the client, and the client can delay paying capital gains tax until the funds are received by the client.
It is a fantastic way to decrease headaches of investment properties, and still have income to live on. This way a 1031 Exchange can be processed not into more investment real estate that requires management, but rather into a trust that provides income without the hassle. I’m so happy to help my neighbors learn more about this and other alternatives, so please feel free to contact me anytime if I can be of assistance.