A 1031 exchange gives you two paths. Most CPAs only mention one.
The path most people know: sell your property, buy another one, stay in the landlord business. Same work, different address.
The path most CPAs don't bring up unless you ask: sell your property, reinvest into a professionally managed, institutional-grade real estate investment, and step away from active management entirely.
No tenants. No maintenance calls. Just potential passive income deposited into your account.
Both paths defer your capital gains tax completely. Both are IRS-approved. The difference is what your life looks like on the other side.
Active replacement property vs. Delaware Statutory Trust - what you need to know.
A Delaware Statutory Trust (DST) is a fractional ownership structure that lets accredited investors own institutional-grade commercial real estate without the responsibilities of direct ownership.
- Multifamily, industrial, and retail properties
- Professional sponsor manages everything
- Qualifies as like-kind replacement property under IRS rules
It satisfies your 1031 exchange requirements just as a directly purchased property would.
Dan L. Werry, JD, MBA
Dan specializes in helping accredited investors navigate 1031 exchanges into DST investments - with access to 60+ verified DST properties from 30+ sponsors. As an independent advisor, he has no incentive to push any single product. His job is matching you to what fits.
"When the average client sits down with me for the first time, they're feeling a little bit unsure. What I do is take a step back, explain how deferring capital gains works through a 1031 exchange, and then show them how a DST can help them take a more passive role - versus the hands-on, day-to-day work that creates so many challenges."
Three steps from active landlord to passive investor.
Dan walks you through how a 1031 exchange into a DST works for your specific situation - property, timeline, and goals.
With access to 60+ properties across 30+ sponsors, Dan identifies the options that genuinely fit - not just whatever one firm happens to carry.
Your Qualified Intermediary handles the mechanics. You reinvest, defer the taxes, and begin receiving potential passive income.
Questions we hear most often
Yes. The IRS ruled in Revenue Ruling 2004-86 that DST interests qualify as like-kind replacement property for 1031 exchange purposes. It's been a legitimate and widely used strategy for accredited investors for over two decades.
That depends on your income goals, risk tolerance, timeline, and how much equity you're reinvesting. This is exactly what a strategy call with Dan covers - matching your specific situation to the options that actually fit, not the ones a firm happens to have available.
DST sponsors represent their own inventory only. Dan works independently across 30+ sponsors - which means he can compare the full market and recommend what's right for you, not what's easiest for him to sell.
Ready to understand all your options - not just the ones one firm happens to carry?
Book a free 30-minute education call with Dan. Whether you're early in your research or already evaluating specific DSTs, he'll meet you where you are and give you a clear picture of what's actually available.