Direct 1031 Exchange, a real estate investment firm that sponsors 1031 exchanges, has launched an online platform for accredited investors seeking direct access to investment opportunities using the Delaware statutory trust structure.
“We are very excited to announce the launch of Direct 1031 Exchange, which puts the power of tax deferral and potential capital appreciation directly at the fingertips of accredited investors,” said Matt Bear, founder and chief executive officer of Direct 1031 Exchange. “Our easy-to-use online portal simplifies the Section 1031 exchange process, while simultaneously saving costs typically passed on to the investor.”
The company noted that the online portal allows accredited investors to participate in 506(c) DST offerings sponsored by the firm with no upfront load or commission paid by the investor.
Investors can view available DST offerings, review appropriate offering documents, and invest accordingly. Once an investment is received and approved, investors can manage their investment in an offering through the online portal, as well as view additional DST offerings available from the company.
Section 1031 of the Internal Revenue Code allows investors to defer paying capital gains taxes on investment property sales by reinvesting the proceeds into a similar investment property within a specified time frame.
Delaware statutory trusts use the 1031 exchange guidelines, but instead of an investor attempting to identify a replacement property on their own, a sponsor acquires the replacement property and sells DST shares to a number of investors – up to 499 different investors are eligible to purchase interests in a single DST.