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Delaware Statutory Trust Benefits

  • Viable source of 1031 replacement properties – Sponsors have already preformed the due diligence and purchased the investment property(s), therefore investors don’t have to spend days and weeks searching to identify possible replacement properties. Investors can review Delaware Statutory Trust offerings and decide which investment assets best meets their needs and objectives. 
  • No tenants, no toilets, no trash – As a passive investor and income beneficiary to the trust, there are no day-to-day hassles of management. These burdens lie on the Sponsors and their operational duties to the investors. 
  • No banks to deal with – Today, dealing with banks is more difficult, especially when borrowing their money. The Sponsor, as the trustee, secures the financing for the trust not each individual investor. The loan on the trust is considered nonrecourse debt to the investor. 
  • Leverage the “smarts” of others – Investors have the option to go at it alone, but leveraging the experience and education of people around them is a powerful option. Some real estate sponsors have hundreds of employees and decades of experience backing their success and understanding the risks in real estate. 
  • Access high-quality, investment-grade real estate – Sponsors provide access to institutional properties, quality tenants, managed by professional real estate investment firms.