The 1031 exchange strategy is the best thing that business persons can benefit from since it comes with a series of great benefits, one of them being that it helps them defer certain taxes and save money. Before closing a deal, it is essential though to be well informed on what this strategy actually means, when it can be used and by whom. However, these details can sometimes be quite complicate and difficult to understand by those who do not have experience in the real estate field, which is why they are advised to resort to the services of a professional DST company. Below in this article you will learn what the most important features of a great DST company are to make it easier for you to select the best one on the market.
Experience in the field is a must
One of the most obvious differences between a good and a great company specialized in the 1031 exchange strategy is related to the years of experience in the field. This can be easily checked by doing some quick research on the Internet or by visiting the company’s website. Ensure that the specific company has well-trained employees, with vast knowledge in the field and who know exactly what to do in order to provide you with the desired results.
They know where to look for DST properties
A professional DST company has access to a range of both on-market and off-market properties that fit the requirements. However, what makes such a company to differentiate from other similar ones on the market is their selection criteria. The best ones will always reject asset managers or sponsor companies that simply do not meet the specific terms and requirements. They will put you in contact only with reliable and trust-worthy business persons.
They perform property inspections
Another significant difference between good and great companies operating in the DST and 1031 exchange field is related to property inspection. There are very few DST companies on the market nowadays that perform property inspections before offering clients any 1031 property exchange options. If you want to ensure you are making the best 1031 exchange decision, it is strongly recommended you resort to the help of a DST company that takes property inspections very seriously.
They present their clients with updated and detailed info
Do not expect for the DST company to make decisions and close deals on your behalf, because this will not happen. In the end, it is still you who decides whether or not to exchange your property with another one the DST company has found. However, one important aspect that these companies have to take care of is to keep their clients informed at all steps during this process. A professional and trust-worthy company will not hide information from clients, but will answer whatever questions the latter ones may have.
All in all, these are the essential aspects that clearly make the difference between professional and reliable DST companies and mediocre ones.