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December 2nd, 2016 by Jan


FGG1031 is an affiliate of First Guardian Group focusing on offering 1031 Exchange options for real estate investors seeking long term stable income with minimal management responsibilities.

This blog is focused on exploring and discussing issues related to 1031 Exchange and the Delaware Statutory Trust (DST). Investment strategies utilizing the 1031 Exchange are utilized by many investors throughout the United States to achieve their individual investment goals. DST investments, which are eligible for tax deferral benefits under a 1031 Exchange, are a form of fractional real estate ownership in which an investor owns a percentage of an entire income producing real estate property. A DST investment can provide monthly cash flow as well as the potential for capital appreciation. Income producing real estate in a DST structure has become a desirable alternative for accredited investors seeking income and asset preservation without the headaches that can accompany wholly owned investment properties.

Furthermore, a growing number of investors are seeking higher income options than what otherwise may be available through more traditional investments such as equites and bonds. Rental income derived from real estate investments has the possible added benefit of depreciation and expense write-offs that can produce higher after tax income than other forms of investment. Use of a 1031 Exchange further improves potential returns on the sale of income producing real estate by allowing a deferral of capital gains taxes which effectively allows investors to reinvest a larger portion of their gains, thereby improving the growth of their net worth.

The rapid growth of this form of investment in recent years has created a need for increased education on the part of financial advisors, investors, lawyers, accountants, and other intermediaries to better determine the suitability of this option as part of an overall investment strategy. Even those investors who have completed previous 1031 Exchanges can benefit from taking time to read and study the advice and best practices contained throughout the blog and the FGG1031 website.

This blog and the FGG1031 website provide resources and educational material to assist a real estate investor throughout the entire 1031 Exchange process. Periodic blog posts will cover the pros and cons of the DST structure, background on the 1031 Exchange process including examples of common transactions, as well as a sensible roadmap for finding and evaluating DST investment options. Register on our home page to receive a current list of available 1031 Exchange DST properties, and of course, reach out to one of our licensed specialists who can provide you with the optimum solutions to meet your real estate needs and satisfy your investment objectives.



There is no guarantee that any strategy will be successful or achieve investment objectives. All real estate investments have the potential to lose value during the life of the investments. The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities. All financed real estate investments have a potential for foreclosure. Delaware Statutory Trust (DST) investments are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments. Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions. Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits.