Modern Real Estate Investing: The Delaware Statutory Trust

Modern Real Estate Investing: The Delaware Statutory Trust

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Overview

Modern Real Estate Investing: The Delaware Statutory Trust by MBT John Harvey CPA, Trawnegan Gall, David Kangas

Modern Real Estate Investing introduces the nation to a new concept in real estate investment known as the Delaware Statutory Trust (DST). The DST is a synthesis of one hundred years of real estate, securities, and tax laws that provide an investment entity that allows the modern real estate investor to build a diversified portfolio of institutional grade real estate under protective securities regulations and enjoy the tax advantages of gain nonrecognition using IRC section 1031 like-kind exchanges. The book not only introduces the DST but also guides the reader through the investment process by providing perspective in the choosing of brokers, sponsors, and properties as well as a more in-depth analysis of the DST offering (John Harvey, CPA, MBT, author).

The book provides a clear explanation of DST's and how they provide opportunities for smaller investors access to institutional properties otherwise not available to them, because of the large equity requirements and access to reasonable financing. The 1031 exchange is linked very nicely, explaining the DST opportunity for diversification in more than one investment that helps balance overall risk in the 1031 exchange. Trump tax plan is expertly explained and its impact on the DST structure. Book describes clear example of the tax savings of a 1031 exchange and the benefit of compounding on deferred taxes avoided at time sale. Good examples of dos and don'ts in the 1031 exchange (Kosmas G. Toskos, DST investor).

Product Details

ISBN-13: 9781642983425
Publisher: Page Publishing, Inc.
Publication date: 07/09/2018
Pages: 330
Sales rank: 200,267
Product dimensions: 6.00(w) x 9.00(h) x 0.90(d)

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Modern Real Estate Investing: The Delaware Statutory Trust 4.9 out of 5 based on 0 ratings. 8 reviews.
Mike_Ball 3 months ago
Every Serious Real Estate Investor Should Read This Book   "Modern Real Estate Investing: The Delaware Statutory Trust" by John Harvey is a serious book aimed squarely at serious investors with real estate gains to shelter. Spoiler alert - this book is not light reading! Harvey’s book lays the structure for implementing the Delaware Statutory Trust, or DST, an investment concept that allows an individual to join with other accredited investors to own investment-grade real estate that would be otherwise out of reach. In other words, with an investment as low as $25,000 you could own part of a stable, low-risk, well-vetted commercial property worth up to $100 million. The DST also allows moderate investors to build wealth by using tax deferred exchanges. To quote from the book, “According to Internal Revenue Code 1031, an investor can defer capital gains tax and depreciation recapture by reinvesting the proceeds from the sale of real property into replacement property, thus preserving significant wealth in their estate…” You would benefit from this book, for example, if you own a second home as an income property but are tired of dealing with maintenance, tenants or other problems. You could sell that home and put the proceeds into a DST, investing in larger properties, some with national names. The bottom line is that you can get passive and diversified income in the 6-7% range - tax deferred. John Harvey is well qualified to tackle this complex investment topic. He was a tax consultant to Hollywood’s elite, representing high-net-worth celebrities including Walter Matthau, Johnny Carson, Janet Jackson, Larry Hagman and Jean-Claude Van Damme, and others. Harvey is clearly an authority on DST. He has conducted extensive research on the topic, and implements DST’s in his own practice. As I said, this is not light reading. It’s detailed, authoritative, and densely packed with useful information. It is by no means a vacation beach read, but for the right person who wants really understand how to shelter real estate gains using legal methods, this book is for you.
Rick Lorenz 4 months ago
Modern Real Estate Investing: The Delaware Statutory Trust Review by Rick Lorenz CRS, ABR, CLHMS, CNE, CyberStar Broker for Team Lorenz with the Wells Group Real Estate Brokerage, Durango, Co Commercial Real Estate Brokers - Buy This Book! Save Your Clients Some Tax Dollars! Experienced Realtors often talk about the various “tools they have in their toolbox” to help buyers and sellers in their real estate investing. Acquiring property using your IRA, using the 1031 tax-deferred exchange method or taking title in the various forms of corporations, LLC’s or trusts are just a few of the tools that are frequently used. John Harvey’s book on the Delaware Statutory Trust certainly adds another level of expertise for the Realtor in addition to providing some terrific tax benefit options for their clients. This is not a book for the faint at heart because to really get the most out of it you have to dig down into it to appreciate the nuances and benefits of the Delaware Statutory Trust. Don’t be alarmed by this however because just like a doctor learning a new surgery may have to watch a video 10 times in order to learn the technique, this book serves as that training video for the commercial real estate broker. As a long-time practitioner and a Realtor Emeritus, I found the book to be compelling and even shared it with another broker in our firm who specializes in commercial real estate. Just like a hammer shouldn’t be used as a screwdriver, the Delaware Statutory Trust, is intended for some very specific types of transactions and when used properly can offer extremely satisfactory results. I would recommend this book to any experienced commercial real estate broker who wants to add another tool to his toolbox and increase the level of service to his clientele.
connywithay 5 months ago
“The DST has become a means for the private investor to build and preserve wealth within a regulated investment environment using institutional-grade real estate on a tax-deferred basis while enjoying tax sheltered passive income,” John Harvey, Trawnegan Gall, and David Dangas write in the first chapter of their book, Modern Real Estate Investing: The Delaware Statutory Trust. ~ What ~ At three-hundred-and-thirty pages, this paperback targets those who have excess funds and want to invest in large real estate deals without having full property ownership. After acknowledgments, foreword, and the authors’ biographies, the book is divided into four sections that total twenty-four chapters, ending with appendices and endnotes. Beginning with the vision, advantages, and structure of a Delaware Statutory Trust (DST), also discussed in the first section are the disadvantages, risks, fees, who may invest, tax implications, and an introduction to the 1031 Exchange. The second part explains the industry and how to choose a broker, sponsor, and DST property as well as the closing process, hold period, and final disposition. Next is analyzing the DST offering that includes due diligence, PPM document, debt structures, diversification, depreciation, risk factors, the TIC, and history of these types of investments. The final section involves private trusts, real estate, and other funds. ~ Why ~ With real estate values soaring from coast to coast and commercial/residential building expanding, this books is an in-depth study of investing in office, retail, multifamily, senior living, hotel, and industrial real estate. I appreciate the detailed, well-written explanation of private placement investing in fractionalized real estate purchasing. The book has the step-by-step discourse of the tax ramifications of profit or loss, the recommendations choosing the right investment team, and the process from start to selling of the DST including reinvesting in replacement property. ~ Why Not ~ Those who do not have a minimum $1,000,000 net worth or make $200,000 annually ($300,000 if married) are not allowed to buy into a DST so will forgo an interest in this book. Others may feel that there may be too much risk involved investing in mega-building property during the current economy that may drastically change in the next year or two. There are some who may consider this to be a shell game of tax-shelter strategizing that only the wealthy can participate. ~ Wish ~ Since the book covers mainly the DST while briefly mentioning the TIC and REIT of real estate investing, it does not have a full range of examples of purchases, sales, or losses. I wish an index was included so one could look up a specific topic quickly. ~ Want ~ For those who are interested in diversification of their passive income while building wealth investing fractionally in real estate as a tax shelter, this may be a good source of information. Thanks to Westwinds Communications and the authors for this complimentary book that I am under no obligation to review.
Anonymous 5 months ago
Real Estate Investing and the DST Explained! John Harvey’s exceptional new book, Modern Real Estate Investing: The Delaware Statutory Trust, made me wish I had the extra cash laying around to take advantage of the Delaware Statutory Trust. This concept, little known to most Americans, is an outstanding way to invest into real estate without the hassles of management, and with the investor protections of a security. What is a security, you may ask? (I had to look that up!). If you’ve ever invested in stocks, you have securities. Well, the Delaware Statutory Trust now lets you invest money in real estate with the due diligence and full disclosure that you would expect from a security. But how does this work? Sponsors make available large properties, such as multi-tenant apartment buildings, single-tenant triple-lease properties, office buildings, warehouses, retail shopping malls (shopping malls?), restaurants and hotels (I’ve always wanted to own a piece of a place on the ocean…). Affordability hasn’t always been there for most people, but the really amazing thing is you might already have the investment! A lot of Americans already own rental property, usually in the form of a second home they are leasing out. But there are problems, such as leaky toilets and roof repair, and maybe a tenant who doesn’t keep up their rent. Now, however, you can sell that property and roll over 100% of the profit into a DST investment property with absolutely no tax penalties. Then, you just sit back and enjoy the income cash flow. It’s probably not quite that simple, and there are stipulations, such as you must be an accredited investor and have a certain amount of net worth. But it’s an amazing opportunity, which I hope I can take advantage of some day. Harvey explains all of this in detail in his book, as well as gives a fair and balanced view of the risks and benefits. Harvey’s reputation as a solid financial advisor is well-earned. With thirty-years of experience in the US, Russia and Italy, he comes to the table with knowledge and an impeccable record from FINRA. He also worked as a tax consultant to high-net-worth celebrities such as Janet Jackson, Jean-Claude Van Damme, Johnny Carson and others. He owns his own firm in Orange, California, and gives back to others by serving as a missionary in his church and coaching his kids’ sports teams. You might have a lot of money to invest, or you might have as little as $25K to roll over. Either way, I’d pick up a copy of Modern Real Estate Investing and see if you can take advantage of the amazing tax shelter of the DST and 1031 that is available to us. Read the book, and then give Harvey a call.
Anonymous 5 months ago
Real Estate Investing and the DST Explained! John Harvey’s exceptional new book, Modern Real Estate Investing: The Delaware Statutory Trust, made me wish I had the extra cash laying around to take advantage of the Delaware Statutory Trust. This concept, little known to most Americans, is an outstanding way to invest into real estate without the hassles of management, and with the investor protections of a security. What is a security, you may ask? (I had to look that up!). If you’ve ever invested in stocks, you have securities. Well, the Delaware Statutory Trust now lets you invest money in real estate with the due diligence and full disclosure that you would expect from a security. But how does this work? Sponsors make available large properties, such as multi-tenant apartment buildings, single-tenant triple-lease properties, office buildings, warehouses, retail shopping malls (shopping malls?), restaurants and hotels (I’ve always wanted to own a piece of a place on the ocean…). Affordability hasn’t always been there for most people, but the really amazing thing is you might already have the investment! A lot of Americans already own rental property, usually in the form of a second home they are leasing out. But there are problems, such as leaky toilets and roof repair, and maybe a tenant who doesn’t keep up their rent. Now, however, you can sell that property and roll over 100% of the profit into a DST investment property with absolutely no tax penalties. Then, you just sit back and enjoy the income cash flow. It’s probably not quite that simple, and there are stipulations, such as you must be an accredited investor and have a certain amount of net worth. But it’s an amazing opportunity, which I hope I can take advantage of some day. Harvey explains all of this in detail in his book, as well as gives a fair and balanced view of the risks and benefits. Harvey’s reputation as a solid financial advisor is well-earned. With thirty-years of experience in the US, Russia and Italy, he comes to the table with knowledge and an impeccable record from FINRA. He also worked as a tax consultant to high-net-worth celebrities such as Janet Jackson, Jean-Claude Van Damme, Johnny Carson and others. He owns his own firm in Orange, California, and gives back to others by serving as a missionary in his church and coaching his kids’ sports teams. You might have a lot of money to invest, or you might have as little as $25K to roll over. Either way, I’d pick up a copy of Modern Real Estate Investing and see if you can take advantage of the amazing tax shelter of the DST and 1031 that is available to us. Read the book, and then give Harvey a call.
Anonymous 6 months ago
An excellent guide for investors who don't have the time to manage rental properties; just don't expect a passive read Do you want to invest in real estate but don’t have the time to maintain a property? Are you interested in diversifying your portfolio without having to worry about taxes? Then Modern Real Estate Investing is the book for you. At well over 300 pages, it’s a dense read, but you will find everything you need to know before diving into the world of real estate investment. More specifically, you will find a comprehensive guide to the Delaware Statutory Trust (DST), a tax-sheltered investment which will yield a truly passive income. This book, written by licensed general securities representatives from Cornerstone Real Estate Investment Services, tells readers about everything from what a DST is to how it works. The writers leave nothing out; the good, the bad, and the ugly about the trust is included to help readers decide if the DST is the right investment for them. Case studies, charts, tables, and other visual aids help readers to better understand the complex concepts and financial and legal jargon sprinkled throughout the text. Best of all, appendices and a list of resources at the end of the book give readers a starting point for further, self-conducted research on the subject. Because of the topic, the writing is rather dry. The jargon can be a bit overwhelming when there aren’t visual aids or case studies, and the experience definitely takes some effort on the reader’s part. Still, such matters cannot be avoided in books about investment and finances. Overall, the writers do well in explaining each concept thoroughly and trying to make the material accessible, which helps to make up for the more challenging or boring sections. Career people looking into real estate investing should definitely check out this book. It will save them a lot of research time and point them towards a form of real estate investment which not many people know about, let alone consider. Seeing as most career people don’t have the time to maintain a property themselves, the DST could be their best investment option, and I don’t think there’s a better guide to the DST than Modern Real Estate Investing. All in all, this book is thorough, informative, and very useful. While not everyone will find this book useful as not everyone has the money to invest in a DST, those who do need to read this book before making any decisions. It’s a time commitment, but, in the long run, it could help you make better decisions and more money than walking into an investment firm blindly.
Grady1GH 6 months ago
A breath of fresh air in the investment arena – a unique guide to safe real estate investing At the most propitious moment in time MODERN REAL ESTATE INVESTING opens the window on sensible, practical, secure and advantageous information on wise investing. Just when the current economic status as presented by the media seems to be tenuous at best, authors John Harvey and his associates introduce the concept of DST (Delaware Statutory Trust) as a means for the private investor to build and preserve wealth within a regulated investment environment using institutional-grade real estate on a tax-deferred basis while enjoying tax sheltered passive income. The presentation is fascinating as well as accessible and DST is only one part of this important new guide to safe investing. A must read for a very wide audience!
Susan-Keefe 6 months ago
A comprehensive guide to utilizing DST in modern real estate investing, written by experts, especially for you. The authors of this book have over a decades experience in the real estate private placement industry, and they have also asked several trusted colleagues from real estate sponsors and attorneys to qualified intermediaries to contribute in various ways. In doing this they hope to achieve their goal of not only introducing the DST concept for real estate investing to all, but also to provide for the reader a balanced view from the whole industry. So what is DST? DST (Delaware Statutory Trust) is a trust formed under Delaware statutory law which allows a person to own a fraction of a piece of real estate as an investment. This is made possible through a securities private placement offering, and it gives the individual the opportunity to join with other accredited investors in owning a real estate that they would not individually have been able to afford. This book provides an extensive guide for everyone, from the beginner to the more experienced investor, and the information is divided into four section. The first gives a comprehensive introduction to alternative real estate investing using DST, with the aim of encouraging private investors to consider private placement investing. Then in the second section, DST is looked at in more detail for those who are unfamiliar with the concept, and this section also provides the reader with insider information on how to choose trusted business partners, whether they be qualified intermediaries, sponsors or brokerages. The authors hope that this information will give private real estate investors the confidence to utilize the effectiveness of § 1031 exchange tax deferral and expand their personal portfolio of institutional grade real estate. For the experienced investor DST is analysed and greater insight is given as the book progresses. This should aid the more seasoned investor in their selection of properties with a view to minimising risk and meeting their investment aims. Examples are given of real investment portfolios, and explanations of each provided to enable the reader to see the real potential of this type of investing. At the end of the book in order to provide a balanced viewpoint, the authors have provided information on the alternatives to DST, and discuss their individual pros and cons. Because this is a high risk industry, throughout, the authors have tried to provide fair and balanced information and there is a separate chapter committed to potential risks. This book is essential reading for anyone who is considering DST. The wealth of experience provided by the authors and contributors, provides invaluable information, presented in a way which is easy to read and understand. A very useful guide which enables the reader to make informed decisions on whether or not this type of real estate investing is for them.