The Delaware Statutory Trust & 1031 Exchanges Explained in New Book: Modern Real Estate Investing

How to Utilize the Last Great American Income Tax Shelter to Build Wealth and Enjoy Passive Income.

Orange, CA, USA – The dream of building wealth and enjoying financial independence is alive again in America! In his new book, Modern Real Estate Investing, John Harvey, CPA, MBT, lays the structure for implementing the Delaware Statutory Trust and Section 1031. Harvey, a thirty-year veteran of financial investing and owner of Cornerstone Real Estate Investment Services, cut his teeth in the Beverly Hills firm of Ernst & Young. There, he was a tax consultant to high-net-worth celebrities including Johnny Carson, Janet Jackson, Jean-Claude Van Damme, Walter Matthau, and Larry Hagman. Now, he is bringing real estate investing within the reach of more Americans. (http://www.DSTproperties1031.com)

Watch the book trailer here: http://bit.ly/DST-Cornerstone

Harvey’s book explains the Delaware Statutory Trust, and more, in concise, easy-to-read terms which presents a fair and well-balanced presentation pairing advantages with disadvantage. As the top producer for Cornerstone and Sandlapper Securities LLC (Member FINRA/SIPC), Harvey is assisting investors in the purchase of over $500 million in tenants-in-common and Delaware Statutory Trust real estate.

“The presentation is fascinating as well as accessible and DST is only one part of this important new guide to investing. A must read for a very wide audience!” – Grady Harp Amazon Hall of Fame Top 100 Reviewer

The DST or Delaware Statutory Trust is a trust formed under Delaware statutory law that essentially provides for a fractionalized real estate investment, and presents the opportunity, through a securities private placement offering, for an individual to join with other accredited investors to own investment-grade real estate that none of them could own individually. With DST minimum investments as low as $25,000 ($100,000 for exchanges), the private investor may own larger commercial institutional-grade real estate with values up to $100 million.

The DST, provides a way to accumulate ownership in multiple real estate properties, with all of the tax advantages of real estate and the protective investor regulations of a security. A DST allows a network of real estate sponsors across the US to provide the accredited investor with the co-ownership opportunity of institutional grade properties such as multi-tenant apartment buildings, office buildings, warehouses, retail shopping malls, restaurants, and hotels. The accredited investor can then buy a share in these properties and enjoy the passive income without the hassles of management. Whereas selling of most real estate jointly held in a partnership, LLC or REIT requires tax on the gain, this particular tax provision allows DST investors to go from one investment to another in real estate projects and deferrer any tax as long as the investment is rolled over into other like-kind real estate.

So, who can invest? In order to purchase an equity interest in a DST investment, the investor must be an “accredited investor” as defined by the Securities and Exchange Commission. An individual accredited investor is simply any investor with a net worth (assets minus liabilities) of $1,000,000 or more, not including the equity in the investor’s primary residence. Alternatively, the investor may qualify with an income level of $200,000 ($300,000 if married) for the prior two years, and an expectation of the same income for the current year. The book also has a chapter on registered private RIETs which is a great way for non-accredited investors to invest in diversified institutional real estate but without the advantages of tax deferral under Section 1031.

“The vast majority of accredited American real estate investors are folks who own a second home that they are renting out,” says Harvey. “They have all of the burdens of ownership like dealing with leaky toilets and other maintenance as well as tenants with questionable credit. We offer them the opportunity to sell that and roll over 100% of the proceeds into these lager commercial-grade properties with institutional credit quality tenants (some of the best companies in America). A professional management company handles the management and maintenance, so it’s a totally passive investment. In most cases there is a cash on cash return coming back at 6% or 7%.” That, along with the potential appreciation of the property and amortization on the loan, makes for a nice annual return. It should be noted that DST investments and income are not guaranteed, and the investor has the potential to lose some or all of the investment. “With DST, for minimum investments as low as $25,000 ($100,000 for exchanges), the private accredited investor may own larger commercial institutional-grade real estate with values up to $100 million and build a diversified personal portfolio of world-class commercial real estate,” Harvey explains.

Harvey graduated with a Bachelor of Science in Accounting and a Master of Business Taxation from the University of Southern California Leventhal School of Accounting. Always looking for opportunity, Harvey left his Beverly Hills job and went with Price Waterhouse to Moscow in 1992 after the iron curtain fell. He worked in their international tax department, helping big multi-nationals, including Sony, come to Russia. While in Russia, he befriended Ryan Chilcote, a CNN Correspondent and later the first reporter into Baghdad during the Gulf War. Harvey met his wife, Galina, in Russia. They married in 1999 and came back to the US, where he got his master’s Degree in taxation from the University of Southern California. Following 9/11, he started Cornerstone and befriended Jason Chaffetz who later became the Chairman of the House Oversight and Government Reform Committee (R-Utah) and a Fox News Contributor. After the financial crisis, he moved to Rome, Italy to work for several years. Harvey is conversant in both the Russian and Italian languages.

Harvey believes in giving back. While in Russia and Italy, he worked as a missionary, planting evangelical Bible-based churches in both countries. “In the financial services area, there are a lot of high quality people with a high standard of ethics. You see many people of faith in these industries. For a great deal of them, it’s about giving back. It’s not all about money.” A father of three, Harvey enjoys coaching his sons’ Little League and youth football teams. He recently had the opportunity to give back to his alma mater (USC), and has a classroom named after him.

Whether you have always wanted to invest in real estate, or are just now thinking about it, the DST offers you possibilities. If you have rental property, or $25,000 to invest, and are an accredited investor, you can probably join the game. Read Harvey’s new book and see how the DST makes real estate investing a possibility for accredited investors across the country.

Modern Real Estate Investing: The Delaware Statutory Trust, ISBN 978-1-64298-342-5 (Paperback) 327 pages, $32.95, ISBN 978-1-64298-343-2 (Digital), May 2018, Page Publishing, Inc., New York, NY Available on Amazon, Barnes and Noble and Goodreads and the author’s website: http://www.DSTproperties1031.com. Watch the book trailer here: http://bit.ly/DST-Cornerstone.


About John Harvey

John Harvey is the owner and general securities principal of Cornerstone Financial Services and the author of the new book, Modern Real Estate Investing: The Delaware Statutory Trust. He holds a Master of Business Taxation and a Bachelor of Science in Accounting from the University of Southern California Leventhal School of Accounting. He began his career in 1989 with the Beverly Hills office of Ernst & Young as a tax consultant to high net worth celebrities. Mr. Harvey has been a licensed CPA since 1991 and has worked as a tax consultant for Price Waterhouse and as a Senior Manager with Deloitte & Touché in Los Angeles.

Mr. Harvey is a Registered Investment Adviser, General Securities Representative with Sandlapper Securities, LLC (Member FINRA/SIPC) and holds the following securities licenses, FINRA series 7, 24, 66 and 63 and offers Delaware Statutory Trust properties for investment through Sandlapper Securities, LLC. He is a licensed Real Estate Broker in the state of California and a member of the Real Estate Investment Securities Association, the Federation of Exchange Accommodators, and the National Association of Realtors.

Mr. Harvey is the top producer for Cornerstone and Sandlapper, assisting investors in the purchase of over $500 million in tenants-in-common and Delaware Statutory Trust real estate. These credentials, together with his business knowledge and real-world experience, allow the firm to offer in-depth real estate advice on Section 1031 exchange replacement properties with a view to the effects on income and estate taxation.

In his spare time, he believes in giving back. He does mission work through his church, coaches Little League Baseball and Youth Football. He and his wife, Galina have three children and live in the Washington DC area with his corporate office in Orange County, California. Visit his firm’s website at http://www.DSTproperties1031.com.

For a review copy of Modern Real Estate Investing: The Delaware Statutory Trust, or to arrange an interview with John Harvey, contact Scott Lorenz of Westwind Book Marketing at scottlorenz@westwindcos.com or by phone at 734-667-2090.

Follow Lorenz on twitter @abookpublicist.

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