Three obstacles keep owners trapped in a property they want to sell
Owners who would have happily sold five years ago are still holding their building, still paying out of pocket for repairs, and are still on call for their tenants. The reasons are logical but there is a solution.
- The tax obstacle
“I'd sell tomorrow, but I'm not handing the IRS a third of my equity.”
- The management obstacle
“I'm done with tenants, leases, and 2 a.m. plumbing calls. I'm not buying another building.”
- The clock obstacle
“Forty-five days to find a replacement property isn't a search. It's a scramble.”
Sell your building without paying tax, retire from being a landlord
A Section 1031 exchange lets you sell investment real estate and reinvest the proceeds into other qualifying real estate without recognizing the capital gain at the moment of sale.
When the replacement property is a Delaware Statutory Trust interest, that reinvestment becomes passive. You own a fractional interest in institutional-grade real estate. A professional sponsor handles operations. Distributions, when the property generates them, may arrive monthly.
This is one path among several. It isn't right for everyone, and it carries real risks worth understanding before you act.
You become a fractional owner of institutional real estate.
A Delaware Statutory Trust holds title to a property, often a Class A multifamily, industrial, or grocery-anchored retail asset. Your 1031 proceeds buy a fractional beneficial interest in the trust.
A professional sponsor handles all operations.
The DST sponsor manages leasing, capital improvements, financing, and the eventual sale. Your role as an investor is passive. There are no tenant calls, no property tax filings, no asset management decisions.
Distributions, when generated, arrive monthly.
Net rental income from the underlying property may be distributed monthly to beneficial owners. Distributions are not guaranteed and depend on the property's actual performance.
What every investor should understand before considering a DST
We won't show you a specific offering until you've reviewed the structural risks. They apply to every DST, regardless of sponsor or asset type.
- 01DST interests are illiquid. There is no public market. Plan to hold through the sponsor's full hold period, typically five to ten years.
- 02Distributions are not guaranteed. They depend on the underlying property generating net operating income after debt service and reserves.
- 03Loss of principal is possible. Real estate values, tenant credit, interest rates, and local market conditions all carry risk.
- 04You give up direct control. The sponsor decides when to refinance, when to sell, and how to handle property issues.
- 05Fees and load reduce your return. Read the PPM carefully. Sponsor compensation, broker-dealer commissions, and ongoing expenses are disclosed there.
The IRS gives you 45 days, be prepared ahead of time
From the day your relinquished property closes, you have 45 days to identify a replacement and 180 days to close on it. The most common reason exchanges fail is starting the identification work too late.
Day 000 / 180
Sale proceeds never touch your account
IRS rules require the proceeds to flow through a qualified intermediary. APX 1031 holds the funds in a segregated exchange account between the sale of your property (the downleg) and the purchase of your replacement property, or replacement DST (the upleg). Touching the funds yourself, even briefly, would disqualify the exchange.
Run the numbers yourself, or have a coordinator walk you through them
The 1031 tax-deferral calculator
Enter your basis, sale price, and depreciation. See an estimate of federal capital gains, depreciation recapture, and net proceeds with and without a 1031 exchange. No email required to use it.
- · Federal cap gains and depreciation recapture
- · Side-by-side: straight sale vs. exchange
- · Saved to a free account, or downloaded as a PDF
A confidential consultation
Tell us about the property and your situation. A coordinator will reach out to walk through the mechanics, the realistic timeline, and whether a 1031 into a DST is worth exploring further. No commitment.
A coordination desk, in partnership with APX 1031, a Qualified Intermediary
LRC 1031 sits between you, your real estate broker, your CPA, your attorney, and the DST sponsors. We coordinate the exchange itself. APX 1031 holds the funds as the qualified intermediary. Your existing advisors keep their roles.
We don't list or sell real estate. We don't replace your CPA or your attorney. DST offerings are transacted through registered broker-dealers, not by LRC directly.
Many of the owners we work with are introduced by their listing broker. We work alongside your broker, not around them, and we give brokers a toolkit to lead these conversations themselves.
- ISA 1031 coordination desk for property owners and brokers
- ISIn partnership with APX 1031, a qualified intermediary
- ISA coordinator across your CPA, attorney, and broker
- IS NOTA real estate brokerage. We do not list or sell property
- IS NOTA registered broker-dealer. DSTs transact through partner BDs
- IS NOTA CPA, attorney, or financial advisor
Frequently asked questions
If yours isn't here, the form above gets you a coordinator within one business day.
Do I have to be an accredited investor?+
Yes. DST offerings are securities sold under Regulation D and are available only to accredited investors. We confirm accreditation status before sharing any specific offering material.
How long do I have to identify a replacement?+
Forty-five calendar days from the close of your sale to formally identify replacement property, and 180 days total to close. The clock is set by the IRS and doesn't pause for weekends or holidays.
What happens if a DST loses money?+
Your beneficial interest can decline in value, and distributions can be reduced or suspended. In adverse scenarios, principal can be lost. Risk disclosure is detailed in the offering's Private Placement Memorandum.
Can I sell my DST interest if I need liquidity?+
There is no public market. Limited secondary transactions sometimes occur but typically at a discount and on long timelines. Treat the investment as illiquid for the full sponsor hold period.
What does this cost?+
The first consultation is free. If you proceed, the DST itself carries sponsor and broker-dealer compensation that's disclosed in the PPM, similar to any private real estate offering. We don't charge a separate planning fee.
Do I need an account to use the tools?+
No. The 1031 calculator, portfolio builder, and pre-listing checklist are free to use with no sign-in. A free account is optional: it saves your calculator runs, portfolio drafts, and checklist progress so you can pick up where you left off across devices.
Do I still need my CPA and attorney?+
Yes. We coordinate around your existing tax and legal advisors. We don't replace them. If you don't have one, we can suggest professionals we've worked with, but the relationship is yours.
