If you invested in rental property while you were younger, you might be ready to hand over the day-to-day responsibilities now that you're ready to retire. Retirement is supposed to give you time to relax, travel, and do the things you want to do. Unfortunately, you can't always do that when you're tied down to rental properties. That's where Delaware Statutory Trusts, or DSTs, come into the picture. Here are three of the reasons you need to include a DST in your investment strategy.
Hand Over the Management Responsibilities
If you're ready to hand over the reins of your investment properties, it's time to invest in a DST. The trust will handle all the management responsibilities of your investment properties. That's because your investment is in a larger group that is overseen by the primary trust. The trust will ensure that all investment properties are maintained by an experienced management team. That means you'll be able to enjoy retirement without worrying about the day-to-day management details of your rental properties.
Upgrade Your Investment Opportunities
If your investments are limited, it's time to upgrade your opportunities. One of the problems involved with investing as an individual is that you're limited by your own financial abilities. However, when you invest in property as part of a trust, you can branch out to high-value properties. That's because investor resources are pooled together to create larger investment accounts. DSTs also allow you to diversify your real estate portfolio. As part of a trust, you'll be able to invest in both single- and multi-family units, which will ensure a more profitable portfolio.
No Individual Loan Qualification
If your personal credit is maxed out, you may have a difficult time investing in additional properties. Unfortunately, that can hinder your ability to increase your investment capital. When you're part of an investment trust, you don't have to worry about individual loan qualification. Your individual investment will guarantee your place in the trust. That's because all creditworthiness is established by the trust, rather than through the individual investors.
Now that you're ready to retire, make sure you have the time to get out and enjoy life. Instead of being tied down to your investment properties, take advantage of the benefits you'll receive from becoming part of an investment trust. To help get you started, talk to your investment counselor about investment opportunities like 1031 DST exchanges through a Delaware Statutory Trust.