You can own great real estate and still feel trapped by it. The value is up, the taxes feel scary, and a 1031 exchange sounds like signing up for another round of landlord work under a brutal 45 day deadline. We sit down with estate planning attorney Justice Mullen and financial advisor Troy Wada of Impact Wealth to explain how Delaware Statutory Trusts (DSTs) can change the options, especially for investors who want tax deferral, more passive income potential, and less day-to-day management.

We walk through what a DST is, why the IRS treats it as like-kind property for a 1031 exchange, and how investors can exchange out of a rental or commercial building into fractional ownership of institutional-grade real estate. Troy breaks down practical details people worry about, including debt replacement through non-recourse financing, minimum investment ranges, and how DST availability can reduce the stress of finding a replacement property fast. We also talk about the 721 UPREIT approach, where a DST can later convert into REIT ownership and potentially introduce liquidity planning that traditional 1031 exchanges do not address.

Estate planning stays front and center. Justice explains the real family problems that show up when multiple heirs inherit property together, or when the properties are unequal in value. DST interests can be divided proportionally, which may reduce conflict and simplify beneficiary decisions. We also address the risks honestly: vacancy, market shifts, tenant issues, debt terms, and the fact that income is never guaranteed. Troy shares the due diligence lens used to vet sponsors, properties, micro-market drivers, cash flow sources, and upcoming capital needs.

If you’re thinking about a 1031 exchange, retirement, or a long-term wealth plan built around real estate investing, listen closely and bring your advisor team together early. Subscribe to the podcast, share this with a friend who owns rentals, and leave a review so more investors can find it.