PROCESS
How the 1031 DST Process Works
1.
Sell Your Property
The process begins with the sale of your investment or business-use property. To ensure you qualify for tax deferral under Section 1031, the sale proceeds must not be received directly by you. Instead, the funds are transferred to a Qualified Intermediary (QI)—a neutral third party responsible for holding the proceeds securely and facilitating the exchange in compliance with IRS guidelines. Latitude DST Group works with bonded, insured, and nationally recognized QIs to make sure everything is handled properly from day one. We help coordinate this step so there’s no delay in beginning your exchange timeline.
2.
Identify Replacement Properties (Within 45 Days)
Once your sale closes, the clock starts ticking. You have 45 calendar days to formally identify potential replacement properties that you intend to purchase through the exchange. This is a critical and often stressful part of the process, especially if you're unfamiliar with the rules. Our team at Latitude DST Group simplifies this step by helping you evaluate and select from a curated list of vetted Delaware Statutory Trust (DST) options that align with your:
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Income objectives
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Debt replacement requirements
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Risk tolerance
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Tax and estate planning goals
We help ensure your property identifications are strategic, compliant, and optimized for your long-term financial outcomes.
3.
Close and Invest (Within 180 Days)
After the identification period, you have up to 180 days from the sale of your original property to close on your chosen replacement property (or properties). With DSTs, this step is often much faster than with traditional real estate due to pre-packaged, pre-acquired investment structures. In many cases, we’re able to complete the entire closing and investment process in as little as 24 to 72 hours—saving you stress and keeping you well within IRS deadlines. We coordinate with your QI, DST sponsor companies, and any of your other professional advisors to ensure a smooth, hassle-free closing experience.
4.
Start Earning Stress-Free Passive Income
Once your funds are invested into one or more DSTs, your active involvement ends—and your passive income begins. As a fractional owner of institutional-grade real estate, you’ll begin receiving monthly distributions (if applicable), detailed financial reporting, and updates from the DST sponsor—all without dealing with tenants, property maintenance, or management duties. Your wealth continues working for you, while you enjoy peace of mind, potential income, and tax-efficient growth—guided by a team that stays with you long after the exchange is complete.