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FAQ

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Exchange-X is a leading 1031 exchange real estate investment firm for Delaware Statutory Trust (DST) properties. Exchange-X offers access to over 70 leading DST sponsors and dozens of active offerings. 

To learn more, visit the About page of our website.

  • Largest 1031 Replacement Property Inventory
  • State-of-the-Art Investment Website
  • 70+ Sponsors
  • 20+ year track record
  • Dedicated Support Team
  • Clean Professional Designations
  • 3rd Party Due Diligence

Exchange-X offers 1031 exchange investors a state-of-the-art Delaware Statutory Trust (DST) investment website with over 70 best-in-class DST sponsors and dozens of active 1031 properties to choose from. Investors can easily search, review, and identify institutional grade 1031 replacement properties. In addition, every client is assigned an experienced licensed financial professional for ongoing support. 

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Exchange-X exclusively offers Delaware Statutory Trust (DST) properties which qualify as “Like-Kind” for 1031 exchange. Most other “Crowdfunding” platforms offer Regulation A or Regulation CF funds which do not qualify as “Like-Kind”, therefore there is no tax benefit.

In addition, other crowdfunding sites typically partner with smaller, less established sponsors. At Exchange-X, we partner with well-established sponsor firms who deliver investment-ready properties with average deal sizes exceeding $30 million.

Simply create an account and browse.

Once completed, a licensed professional will reach out to assist with any further questions.

A Delaware Statutory Trust (DST) is a legal entity (similar to an LLC) created under Delaware law that permits fractional ownership of real estate assets. DSTs are classified as “direct interests” and possess the unique ability to qualify for 1031 exchange. Tax benefits include depreciation, mortgage interest deductions, and many more.

To learn more about Delaware Statutory Trusts (DSTs), we encourage investors to read our free eBook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs)” or visit our Education Center.

DST properties are registered with the Securities & Exchange Commission (SEC) as Regulation D 506(b) and 506(c) private placement offerings. Per FINRA rules, investors must be deemed an “Accredited Investor” to purchase.

Please refer here for the latest definition.

  • Individual
  • Joint WROS
  • Joint TIC
  • Sole Proprietorship
  • Trust (Revocable or Irrevocable)
  • Limited Liability Corporation (LLC)
  • Corporate (S or C)
  • General Partnership
  • Limited Partnership
  • Self-Directed IRA (Traditional, Roth, SEP, Simple)
  • Self-Directed 401k
  • DVP/RVP
  • And many more.

Distributions are typically paid via check or direct deposit (ACH) to the account setup at the time of investment.

Depending on the sponsor, most distributions are paid monthly or quarterly assuming the property cash flows.  As a reminder, distributions are subject to change and are not guaranteed.

**Reminder: For Zero Cash Flow deals, there are no distributions.

Estimated holding periods can vary. Each property states an estimated investment horizon period ranging from an average of 5-7 years. When investing in Delaware Statutory Trusts (DST), an investor should always plan to invest with a 10-year time horizon in mind. Historically, most offerings go full cycle in under 7 years.

Yes! You can reside anywhere in the world as long as the “Accredited Investor” requirements set forth by the SEC are satisfied and your country of residence is on our approved list.

Sponsors provide a year end operating statement also referred to as a substitute 1099 form, 1098 form, Profit & Loss (P&L) statement and a Grantor Letter on an annual basis on or around March 15th.  A substitute 1099 form outlines your pro rata share of income and expenses. 1098 forms are used for mortgage interest reporting (if applicable). Profit & Loss statements outline property level income and expenses.  Grantor Letters outline items including income earned by the trust, deductions, and other information needed for tax reporting.  Unlike K-1s which are primarily used for Partnerships, LLCs or S-Corporations, Grantor Letters are issued by grantors of Trusts.

**Reminder: Issuing sponsors may request an extension under certain circumstances. The latest extension must be filed by September 15th, as a result, you may be required to obtain extensions for filing federal, state, and local tax returns.

Section 1031 of the Internal Revenue Code provides a simple, strategic method for deferring capital gains and recapture tax from the sale of real property. This is accomplished by completing what is most referred to as a like-kind 1031 exchange.

For more information we encourage investors read our free eBook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs)” or visit our Education Center to learn more.

There are currently two types of property which qualify as like-kind:

1. Property held for investment purposes, and/or
2. Property held for a productive use in a trade or business.

e.g., Apartment building for a retail strip center or land for a self-storage complex.

**Reminder: Exchanging from real property to equities (stocks) do not qualify under the Like-Kind Exchange rules (e.g., apartment building for Microsoft, Inc. stock).

For more information, we encourage investors read our free eBook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DST)” or visit our Education Center to learn more.

Yes. There are three basic guidelines to follow:

  1. Value: The purchase price of the replacement property must be equal to or greater than the net sales price of the relinquished property
  2. Equity: All equity received from the sale must be reinvested into the replacement property
  3. Debt: Exchanger must obtain equal or greater debt on the replacement property.

**Reminder: Any remaining (uninvested) funds are considered “Boot” and is fully taxable.

**Reminder: Exception: a reduction in debt can be offset with additional cash from the exchanger.

For more information we encourage investors read our free eBook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs)” or visit our Education Center to learn more.

  1. The Three Property Rule
  2. The 200% Rule
  3. The 95% Rule

For more information we encourage investors read our free eBook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs)” or visit our Education Center to learn more.

1. 45-Day Identification Period: All replacement properties must be identified by the end of the 45th day from when the relinquished property was closed (Weekends and holidays included).

2. 180-Day Closing Period: All properties identified within the 45 day ID period must be closed on no later than 180-days from when the relinquished property was closed (or 135-days after ID).

No. The IRS has strict codes and cannot be extended for any reason except a Presidential Disaster Declaration. Weekends and holidays are NOT included in this exception.

**Reminder: The 45 and 180-day timelines follow calendar days, not business days.

Exchange-X makes identifying like-kind property simple. Simply sign up and browse dozens of active 1031 offerings on our state-of-the-art website.

For more information we encourage investors read our free eBook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs)” or visit our Education Center to learn more.

To successfully complete a 1031 exchange, a Qualified Intermediary (QI) must take “constructive receipt” of the sales proceeds at the time of close. If the sale has occurred and the seller has taken receipt of the proceeds, the exchange is invalid.

A Qualified Intermediary also known as QI plays a pivotal role in all stages of the exchange process and is necessary to successfully complete a 1031 exchange. At Exchange-X, we work with several Qualified Intermediaries throughout the country. Please reach out to us for a complete list of QIs.

For more information we encourage investors read our free eBook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs)” or visit our Education Center to learn more.

Original Purchase Price + Improvements – Depreciation = Net Adjusted Basis

**Reminder: Consult these figures with a licensed CPA or Qualified Intermediary

For more information we encourage investors read our free eBook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs)” or visit our Education Center to learn more.

Sales Price – Adjusted Basis – Cost of Sale (expenses) = Capital Gain

Capital gain tax is tax on the growth in value of an investment when a sale or transfer occurs. When an asset is sold, the gain or loss is considered “realized” by the IRS thus creating a taxable or non-taxable event. Capital gains are the difference from the original cost basis and the adjusted basis after all expenses.

Capital Gains Calculator

**Reminder: Consult these figures with a licensed CPA or Qualified Intermediary

For more information we encourage investors read our free eBook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs)” or visit our Education Center to learn more.

Bank of New York | Mellon

The Bank of New York Mellon is the world’s largest provider of custodial banking solutions. Since 1939, Pershing has provided comprehensive correspondent securities execution, clearance, data processing, and financial products for over 1,300 clients in 30 countries. With Pershing, The Bank of New York services global assets of over $38 trillion.

Yes.  DST properties are sold as private placements, and they are considered illiquid, high-risk products . Our primary goal is to strive to mitigate risk by performing extensive due diligence and utilizing best-in-class sponsor firms.

Some risks associated with owning real estate can include:

  • Illiquidity
  • Loss of Investment
  • Market Risk
  • Economic Risk
  • Credit Risk
  • Debt Risk
  • Asset-Level Risk
  • Inflation
  • Natural Disaster
  • Distribution Suspension

We encourage every investor to read the prospectus and Private Placement Memorandum (PPM) carefully before making an investment decision. Real estate investors should evaluate all risks before investing. Our advisors are here to help you further understand the risks involved.

For more information, read our Disclosures & Disclaimers and Terms of Use.

Absolutely. Our team of experts are here to answer any questions you may have. Book an appointment with an advisor at your convenience.

For general questions, contact our support team at info@exchange-x.com or call us toll free at (888) 775-1031.

Yes! Every client is assigned an experienced licensed financial professional.

Owning real estate is a major financial decision. With over 50 years of combined experience and over $1 billion in real estate transactions, we are here to be an ongoing resource for you.