FREQUENTLY ASKED QUESTIONS

You are eligible to receive a Fee Agreement in place for your clients…

Kingsbarn pays 3% of the Equity Amount or $30,000 per each $1,000,000 trade

DSTs are getting more popular with all high tax bracket investors that want the tax benefits of real estate without the headache.

It’s not a TIC with multiple owners on title. It is a single Trust on title with multiple beneficial owner shareholders. The Sponsor has 100% decision making authority over the asset unlike a TIC.

We don’t do much of multifamily because it’s a crowded market and they’re often too expensive. Kingsbarn looks to provide value for our investors with the best possible cash flow from high-quality real estate assets.

To qualify as an accredited investor, you must meet one of these criteria: 

– Individual or joint net worth exceeding $1 million (excluding primary residence) 

– Individual income exceeding $200,000 in each of the past two years 

– Joint income with spouse exceeding $300,000 in each of the past two years 

– Reasonable expectation of maintaining the same income level in the current year 

While typical commercial property exchanges take 60-90 days, Kingsbarn’s DST investments can be completed much faster: 

– Initial consultation and qualification: 1-2 days 

– Documentation and review: 2-3 days 

– Closing process: As quick as 8 days (demonstrated success case) 

– Total timeline: Often under two weeks for prepared investors 

Kingsbarn offers competitive broker compensation: 

– 3% of equity amount ($30,000 per $1 million invested) 

– Protected through formal fee agreements 

– Commission paid upon successful closing 

– Ongoing relationship support for future investments 

DST investments offer several structural advantages: 

– Single trust holds title with multiple beneficial owners 

– Professional management by Kingsbarn 

– No direct property management responsibilities 

– Passive monthly income structure 

– Qualified for 1031 exchange purposes 

A 1031 Exchange, named after Section 1031 of the IRS Code, allows investors to defer capital gains taxes on the sale of investment properties by reinvesting the proceeds into similar properties. This process helps investors upgrade to higher-value properties without immediate tax liabilities, enhancing their investment portfolio.

DSTs streamline the 1031 Exchange by allowing multiple investors to hold fractional interests in a trust that owns real estate. This setup eliminates the need for direct property management and provides a passive income stream, making it easier to meet exchange deadlines and diversify investments. 

While DSTs offer many benefits, they also carry risks such as market fluctuations, property vacancies, and changes in interest rates. It’s important for investors to review the Private Placement Memorandum (PPM) and consult with financial advisors to understand these risks fully. 

Brokers in California can earn a 3% commission on equity raised through DST transactions. This compensation is structured to reward brokers for their expertise and efforts in facilitating successful exchanges. 

To verify accredited investor status, individuals must provide financial statements, tax returns, or a letter from a CPA, attorney, or financial advisor confirming their net worth or income qualifications. 

Kingsbarn, as the sponsor of the DST, handles all aspects of property management, including leasing, maintenance, and asset management. This ensures professional oversight and maximizes the potential for stable returns. 

Yes, while DSTs offer tax deferral benefits, investors should be aware of potential future tax liabilities when they eventually sell their DST interests. Consulting with a tax advisor is recommended to understand the long-term tax implications. 

While DST investments offer several tax advantages, such as deferring capital gains taxes through a 1031 Exchange, it’s important to note that distributions received from a DST are typically considered taxable income. These distributions may be subject to ordinary income tax rates. However, investors can benefit from tax deductions like mortgage interest and depreciation, which can help offset some of the taxable income. It’s advisable for investors to consult with a tax advisor to understand how these distributions will impact their overall tax situation and to plan accordingly.

Investors typically begin receiving monthly income distributions shortly after the DST acquisition is completed. The exact timeline can vary based on the specific property and market conditions.