Defer Capital Gains.
Invest in Passive Real Estate.
Delaware Statutory Trusts (DSTs) qualify as replacement property under Section 1031 of the tax code — giving you tax deferral, passive income, and zero management headaches.
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Why Use a DST in Your 1031 Exchange?
Whether you're up against a deadline or looking for a smarter way to invest, DSTs offer a flexible, proven solution.
Facing Your 45-Day Deadline?
DSTs can be identified in as little as 24 hours — giving you a ready-to-close replacement property fast.
Need a Backup ID?
Add a DST as a safety net in case your identified replacement property falls through.
Expecting Leftover Boot?
Use a DST to defer the remaining balance from your initial sale and avoid a partial taxable event.
Benefits of DST Investments
DSTs are not just for 1031 exchanges — they offer compelling advantages for any accredited investor.
Institutional Real Estate
Access larger, professionally managed properties typically reserved for institutional investors.
Portfolio Diversification
Invest across multiple property types and locations to reduce concentration risk.
Defer Capital Gains
Reinvest sale proceeds into a DST and defer capital gains and depreciation recapture taxes.
Potential Monthly Income
Many DSTs provide regular distributions generated by underlying property performance.
No Property Management
The sponsor handles sourcing, financing, due diligence, and all ongoing property operations.
Closing Certainty
Pre-structured offerings reduce the risk of acquisition delays or failed transactions.
Long-Term Non-Recourse Financing
Many DSTs include non-recourse debt secured at the property level — not the investor level.
Efficient Closing Process
Meet strict 1031 exchange timelines with a streamlined, ready-to-close investment process.
DST Investment Highlights
What sets DSTs apart from traditional real estate ownership
Inventory Availability
We represent between 80–100 properties and roughly $800 Million in equity at any given time. All of which can be identified in as little as 24 hours and is ready-to-close.
Defer Capital Gains & Depreciation Recapture
DSTs qualify as real property under Section 1031 of the tax code. When you invest the proceeds from your sale into a DST, you are allowed to defer all the capital gains and depreciation recapture from the sale of your real estate.
Professional Management & Passive Income
By investing in a DST, you'll benefit from professional management from industry-leading real estate management companies, along with dependable, scheduled distributions.
Our Process
From first call to completed exchange — straightforward and efficient.
Consultation
We start by understanding your goals, timeline, and investment priorities.
Strategy Planning
A tailored plan to defer taxes and position your portfolio toward passive income.
Property Selection
Review curated properties and choose investments aligned with your goals.
Exchange Completion
Finalize your 1031 exchange with a streamlined, stress-free closing process.
Scott Offerman
Founder, 1031 Financial
Scott Offerman founded 1031 Financial in 2012. He works with Financial Professionals such as attorneys, accountants and qualified intermediaries to help their clients with their transactions. Potential clients work with 1031 Financial after they have decided with their Financial Professional that a 1031 exchange is what they want to do after the sale of their property, if they and the property sale qualify for such a 1031 exchange.
What Investors Say
Real results from real clients who trusted Scott with their 1031 exchange.
“Scott brings a rare combination of market knowledge, professionalism, and genuine client care. He helped me evaluate multiple DST options, explained the tradeoffs clearly, and made sure I felt comfortable with my decision. I would absolutely work with him again.”
“What stood out most was Scott’s ability to make the process feel personal. He listened carefully, understood what I wanted, and helped me choose an option that fit my goals. It never felt like a sales pitch — it felt like honest guidance from someone I could trust.”
“Working with Scott made the 1031 process feel easy and comfortable. He took the time to explain every option and always had my best interests in mind. I felt confident in the recommendation and appreciated how responsive and thoughtful he was throughout.”
DST Limitations You Should Know
Commonly referred to as the "Seven Deadly Sins" (IRS Revenue Ruling 2004-86), these are the rules every DST must follow.
No New Capital
Once the offering closes, no additional contributions from current or new investors.
No Refinancing
Cannot renegotiate existing loans or borrow new funds, except in limited insolvency situations.
No Reinvestment
Cannot reinvest proceeds from the sale of its real estate assets.
Limited Improvements
Only minor, non-structural improvements and legally required upgrades are permitted.
Restricted Cash Investments
Reserves may only be invested in short-term debt obligations between distributions.
Required Distributions
All cash — other than necessary reserves — must be distributed to investors.
No Lease Changes
Cannot renegotiate leases or enter new ones, except in limited tenant bankruptcy/insolvency situations.
Ready to Explore Your DST Options?
Whether you're in an active 1031 exchange or just starting to plan, Scott is here to help you navigate the process with confidence.
DST investments are illiquid and can expose investors to risks including the potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed.
IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation.
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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
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Securities offered through 1031 Securities Inc. Member: FINRA SIPC. Visit us at https://www.1031securities.com/
1031 Securities Inc. and 1031 Financial are independent and unaffiliated, do not provide tax advice and are not tax advisors.
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