Kay Properties Matt McFarland and Alex Madden on the Advantages and Disadvantages of Debt

<p>Welcome to DST 1031 Essentials with Kay Properties — An in-depth look at the many recurring themes and nuances to the Delaware Statutory Trust (DST) investment process.</p> <p> </p> <p>Topics will cover 1031 exchanges, ins and outs of the Delaware Statutory Trust structure, timing, cash investing, REITS, funds, real estate, and more.</p> <p> </p> <p>The <a href="http://www.kpi1031.com/">kpi1031.com</a> platform not only provides access to these 25+ different sponsor companies, but also custom DSTs only available to Kay clients, full due diligence, and vetting on each DST property on the platform (typically 20-40 DSTs), and an active DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over 30 Billion of DST 1031 investments</p> <p> </p> <p>In this week’s episode, Vice President Matt McFarland and Vice President Alex Madden dive into the importance of debt, how it works, and what are their advantages and potential risks in a 1031 exchange. Debt can be used as a powerful tool, but it is not without its risks.</p> <p> </p> <p>Key Takeaways:</p> <p>[0:45] Risks and disclosures.</p> <p>[3:25] About Kay Properties & Investments.</p> <p>[4:10] Matt introduces Alex and today’s topic.</p> <p>[5:00] How does debt work from a 1031 exchange? What are their advantages and potential risks?</p> <p>[6:25] Why is debt important in a 1031 exchange? Alex explains and describes the process of replacing debt.</p> <p>[7:15] When you sell a property and you intend to do a 1031 exchange, the regulations state you must purchase equal or greater value from what you sold. Alex shares some examples.</p> <p>[9:15] How does debt replacement work when it comes to investing in a DST?</p> <p>[10:10] DST investors do not need to provide financial information. Alex explains how they are not personally liable for their non-recourse loans.</p> <p>[12:45] Matt adds that the DST is going to be acquired by the DST sponsor company prior to