Alternative Investments
1031 Exchanges and Delaware Statutory Trusts
If you are selling appreciated real estate, the tax bill does not have to be the end of the story. A 1031 exchange into a Delaware Statutory Trust can defer capital gains and move you from active landlord to passive owner of institutional real estate. This is Leonard Williamson's specialty, and it is where Apex does some of its best work.
Defer the tax, keep the real estate, lose the landlord role
For clients selling appreciated real estate, a 1031 exchange can defer capital gains tax by reinvesting the proceeds into like-kind property. A Delaware Statutory Trust, or DST, lets you complete that exchange into professionally managed, institutional-grade real estate without the work of being a landlord.
DST interests qualify as like-kind replacement property under IRC Section 1031 (per IRS Revenue Ruling 2004-86), so the exchange and the tax deferral hold while a professional sponsor handles the property.
After the sale, proceeds go to a qualified intermediary. You then have 45 days to identify replacement property and 180 days to close. A DST can typically close in a few business days, which helps when timing is tight or a direct purchase falls through.
It is passive, with no tenants, toilets, or trash. It opens access to institutional real estate, it can diversify across property types and regions, and it continues the tax deferral.
DST offerings are available to accredited investors, generally a net worth over one million dollars excluding your home, or income over two hundred thousand dollars single or three hundred thousand dollars joint. Minimums commonly start around twenty-five thousand to one hundred thousand dollars depending on the offering.
We help you evaluate whether a 1031/DST strategy fits, coordinate with your qualified intermediary and CPA, and identify suitable offerings. Securities, including DST interests, are offered through Alexander Capital, LP.
DST interests are illiquid securities with no public secondary market, involve real estate and other risks, and are available only to accredited investors. This is educational and not tax or investment advice. Suitability, eligibility, and tax outcomes depend on your individual situation.
Other alternatives we work with
Beyond 1031 and DST work, Apex evaluates a broader set of private strategies. Each behaves differently from a public stock-and-bond portfolio and carries its own trade-off, stated plainly.
Direct, non-bank lending focused on income. Illiquid, often with multi-year lock-ups.
Direct deals, funds, NAV REITs, and buyout or growth strategies over a long horizon, with capital calls and a slow early return profile.
A semi-liquid wrapper that can open private strategies to more investors, with periodic and limited redemptions. Access without a full lock-up, but liquidity is limited and not guaranteed.
Defined-outcome and buffered exposure. Subject to the issuer's credit risk and not principal-guaranteed.
What you give up
This is the section most firms leave out, and the reason we lead with it. Alternatives generally ask you to trade away liquidity and simplicity. Your money may be locked up for years. Valuations may arrive infrequently rather than daily. Tax reporting can be more complex and may be delayed.
Fees are often higher than public-market funds, and these strategies are not regulated the same way mutual funds are. An investor could lose all or a substantial amount of the investment. None of that makes alternatives wrong. It makes them something to enter with eyes open.
How Apex evaluates them
Access is only half the job. The other half is selection. Leonard spent roughly five years as a wholesaler before moving into retirement and wealth planning, which means he has seen how these products are built and sold from the inside.
Apex reviews the manager, the strategy, the conflicts, and the fees, then asks the only question that matters: does this fit the rest of your plan, including the tax and estate side. Advice over product.
Who can invest
Many private offerings are limited to accredited investors, generally a net worth over one million dollars excluding your primary residence, or income over two hundred thousand dollars individually or three hundred thousand dollars jointly. Some interval funds may extend selected strategies to non-accredited investors.
Either way, eligibility does not imply suitability. Qualifying to invest is not the same as it being right for you, and that judgment is part of the fiduciary work.
Read this before you consider alternatives
Alternative investments involve a high degree of risk and illiquidity and are often speculative. They may use leverage, may not provide periodic pricing or valuation, may involve complex tax structures and delayed tax reporting, are not subject to the same regulatory requirements as mutual funds, and often carry higher fees. An investor could lose all or a substantial amount of the investment. These strategies are not suitable for all investors, and availability may be limited to accredited or qualified investors. Read all offering documents in full before investing. This page is for informational purposes only and is not an offer or solicitation of any security.
Next step
Talk to Leonard about whether alternatives fit your plan
An advisor replies personally within one business day. No obligation, no pressure to move anything.