Edward Fernandez, founder and CEO of 1031 Crowdfunding, contributes an article to the California Business Journal on why Californians should consider DSTs as an investment in order to alleviate the tax burden. Fernadez explains that DSTs would be especially beneficial for Californians and individuals in high tax states because it provides a cheaper entrance into real estate. “DSTs in combination with 1031 exchanges can provide accredited investors with a tax deferral and real estate exposure in their portfolios. Because DSTs are formulated like a trust, they offer liability protection similar to that of a limited liability company or partnership, allowing for the greatest investor protection,” says Fernandez.
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