“There is No Cash Flow in Raw Land”

Family with Longtime Landholding 1031 Exchanges $2.5 Million of Equity into Potentially Income Producing DSTs


Kay Properties investors, a family who inherited land on the outskirts of a city, tried for years to sell the land all the while learning about 1031 DST offerings as a possible option for their investment. When the property finally sold, the family wanted to lower their risk potential and so they invested the entire $2.5 million into all-cash, debt-free DST properties.

Betty Friant, Senior Vice President of Kay Properties and Investments (www.kpi1031.com), explained, “The family had tried renting out a few of the small houses on the land in the past with very mixed results. They were tired of the active management of the tenants, toilets and trash and so they let the homes remain vacant instead of dealing with the hassles of management. The family ultimately invested in nine different DST properties for sale that represented multiple asset classes including medical, industrial, retail, net-lease pharmacy, self-storage and even a debt-free multifamily DST in various regions of the country with various DST sponsor companies and DST asset managers.”

Friant continued, “The clients were able to move from a negative cash flow scenario of paying the annual taxes and upkeep on land and the rundown buildings to a lifestyle change with potential monthly income and no active management while avoiding the significant tax consequences that would have happened if they hadn’t done a 1031 exchange. The Delaware Statutory Trusts were a great fit for this particular family to potentially accomplish their goals and objectives.”

About Kay Properties and www.kpi1031.com

Kay Properties and Investments is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and an active DST secondary market. Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over $15 billion of DST 1031 investments.

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior to investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed.

Securities offered through WealthForge Securities, LLC. Member FINRA / SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities.

Media contact for more information:
Cary Brazeman