Dwight Kay, Founder of Kay Properties & Investments, Announces New 1031 Exchange Webinar Topic for 1031 Investors Titled "How to Replace Debt in a 1031 Exchange"

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Sep 26, 2024, 08:50 ET

Kay Properties & Investments, known for its top-tier educational events and publications, introduces a new webinar theme focused on tackling the debt replacement challenge for 1031 exchange investors.

TORRANCE, Calif., Sept. 26, 2024 /PRNewswire/ -- Dwight Kay, Founder and CEO of Kay Properties & Investments, one of the nation's most active 1031 investment firms specializing in Delaware Statutory Trusts, announced the release of the latest installment in the firm's weekly webinar series, titled "How to Replace Debt in a 1031 Exchange." This new webinar presentation explores how Delaware Statutory Trusts can potentially offer a streamlined and convenient solution for investors facing the debt-replacement challenge in a 1031 exchange.

Dwight Kay, founder and CEO of Kay Properties & Investments announced a new Webinar topic titled, "How to Replace Debt in a 1031 Exchange". Kay Properties hosts a weekly webinar series held every Wednesday at 11 a.m. PST and 2 p.m. EST.

According to Kay, understanding the concept of debt replacement in a 1031 can be one of the most confusing topics for even experienced real estate investors. In many cases, investors may not be aware that Delaware Statutory Trusts can provide an efficient 1031 Exchange Strategy that can potentially simplify the exchange process as outlined in Internal Revenue Code Section 1031 while also potentially eliminating the burden of personal guarantees and extensive financial disclosures typically required with acquiring a loan on a property.

"I am very excited to announce the latest Kay Properties webinar theme now being presented during our weekly webinar series held every Wednesday at 11 a.m. PST and 2 p.m. EST. We are also presenting this new presentation to thousands of investment property owners nationwide. This new presentation is designed to instruct 1031 investors how the Delaware Statutory Trust can be used as a strategic debt-replacement tool for investment property owners. We believe investors will be excited to view this presentation as we created it to be both easily understood and thoroughly detailed for a full picture of debt-replacement strategies including providing specific examples of various leverage scenarios with respective 1031 exchange case studies," said Kay.

Kay explained the newest presentation begins by outlining the basic 1031 requirements required for a full tax deferral including the 1031 Value Replacement Rule which states that the value of the replacement property in a 1031 must be equal to or greater than the value of the relinquished property, and that any cash or debt not reinvested is known as a "boot", and is subject to capital gains taxes.

"While these basic rules may seem very straightforward on paper, it is remarkable how complicated this concept can get when investors face real life, complicated debt replacement scenarios. That's why we believe this presentation will be both very popular and valuable because it carefully breaks down how Delaware Statutory Trusts can potentially make the debt-replacement challenge remarkably straightforward and efficient," said Kay.

Kay points out that the latest debt-replacement presentation also highlights some often-missed advantages of using Delaware Statutory Trusts for 1031 investors such as:

Pre-Arranged Debt
With Delaware Statutory Trusts, the debt component is already structured and in place to satisfy value replacement requirements of the 1031 investor. Because DSTs allow investors to purchase a fractional interest in the DST and because DSTs have a variety of financing ratios in place, investors don't need to personally secure new financing, undergo personal credit checks, or provide extensive financial documentation to a lender.

Non-Recourse Debt
A non-recourse loan is a type of debt that is secured by collateral, but limits the lender's recourse to that collateral if the borrower defaults. In other words, the lender can't pursue other assets of the borrower to collect the debt. For example, if a borrower defaults on a non-recourse apartment loan, the lender can only foreclose on the apartment and can't take other legal action against the owners to collect the debt.

Finally, the latest Kay Properties & Investments webinar covers three types of Delaware Statutory Trust (DST) properties that are available on the www.kpi1031.com online marketplace, featuring case studies that demonstrate how 1031 investors can utilize DSTs to address various debt leverage scenarios.

"Since DST properties can support a range of debt replacement needs, this presentation also presents specific examples of three different scenarios," said Kay. "These include DST properties with a 30% - 55% loan-to-value (LTV), highly leveraged properties with 70% - 90% LTV, known as Zero Coupon DSTs, and DSTs that are completely debt-free – these are all cash DSTs that have no risk of a lender foreclosure, cash flow sweep or balloon mortgage maturity."

For investors interested in learning more about how Delaware Statutory Trust properties can help solve the debt-replacement challenge for 1031 s, please visit www.kpi1031.com.

About Kay Properties and www.kpi1031.com: Kay Properties helps investors choose 1031 exchange investments that help them focus on what they truly love in life, whether that be their children, grandkids, travel, hobbies, or other endeavors (NO MORE 3 T's - Tenants, Toilets and Trash!). We have helped 1031 exchange investors for nearly two decades exchange into over 9,100 - 1031 exchange investments. Please visit www.kpi1031.com for access to our team's experience, educational library and our full 1031 exchange investment menu.

This material is not tax or legal advice. Please consult your CPA/attorney for guidance. Past performance does not guarantee or indicate the likelihood of future results. Diversification does not guarantee returns and does not protect against loss. Potential cash flow, potential returns and potential appreciation are not guaranteed. There is a risk of loss of the entire investment principal. Please read the Private Placement Memorandum (PPM) for the offerings business plan and risk factors before investing. Securities offered through FNEX Capital LLC member FINRA, SIPC.

SOURCE Kay Properties and Investments