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Delaware Statutory Trust

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What is the definition of Delaware Statutory Trust?
A trust that holds a real property, allowing it to qualify for a 1031 exchange and provide an opportunity for the investor to relinquished management responsibilities.
Using Delaware Statutory Trust in an Example

The sponsor typically finds, manages and offers shares to investors who need to qualify under SEC rules as accredited investors. The properties are typically in retail centers, drug stores, commercial-type offices and medical complexes. They offer a diverse range of investments. Invest in a commercial property. Own a share or fractional Interest managed by a sponsor often with a Fortune 500 tenant and long term lease in place. Properties are usually multi-family, retail centers, office buildings. These investments provide a commercial investment immediately, reduced involvement in management, a steady return for an investment of as little as $25,000 on up. Typically referred to as tenant in common, these investments are now more regularly held in a Delaware Statutory Trust that issues shares in the trust. The IRS has confirmed these shares qualify as “like kind” 1031 exchange qualifying property.

Using Delaware Statutory Trust in a sentence

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