DELAWARE STATUTORY TRUSTS

THE POWER OF TAX-SHELTERED INVESTING

Delaware Statutory Trust DST Investments

Flexible-equity investments in commercial income properties. We provide real estate investors with a simplified 1031-exchange solution through Delaware Statutory Trust (DST) ownership interests

Kingsbarn has established itself as a top national sponsor of Delaware Statutory Trust (DST) investments as rated by dollar volume of interests sold. The company has ranked in the Top 10 of DST providers in the United States for six of the past seven years. Kingsbarn is the only national sponsor to engage commercial real estate professionals (in California) who represent investors, rather than only offering compensation to financial advisors. This allows Kingsbarn's qualifying clients to be represented by who they choose rather than having to go through an intermediary who is unknown to them. What distinguishes Kingsbarn from its competition is its superior yields. Kingsbarn has consistently provided the highest returns in the entire DST industry while providing property options that provide diversification and stability. Kingsbarn has successfully completed 80 offering programs, 15 of which have gone "full cycle" and have sold at a profit.

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DST 101: DELAWARE STATUTORY TRUSTS

WHAT IS A DST AND WHAT CAN IT DO FOR YOU?

Delaware Statutory Trusts (DSTs) provide real estate investors with a way to invest passively in commercial real estate. Kingsbarn, as a sponsor of DSTs, acquire high-quality commercial income properties, places non-recourse financing on the properties, and retains a national, third-party property and asset management firm to manage the properties and make monthly distributions to all investors. Ownership in the Trust is based on a pro-rata share of the equity invested. For example, if a property requires $5 million of equity to acquire and an investor purchases $1 million worth of the Trust, they will own 20% of the Trust and, as such, shall receive 20% of the cash flow distributions as well as 20% of the depreciation allocation in order to shelter the income from income taxes.

Kingsbarn acquires high-quality commercial properties anchored by companies that are generally publicly-traded and highly regarded with revenues exceeding $1 billion annually. The Delaware Statutory Trust ownership structure makes these investments ideal for investors who are in a 1031 exchange. The investment amount is flexible, starting at $100,000, which is also beneficial to 1031 exchange investors who are trying to invest an amount equivalent to their downleg exchange.

THE BASIC ELEMENTS OF DELAWARE STATUTORY TRUST INVESTING

A Delaware Statutory Trust is a separate legal entity created as a trust under Delaware statutory law. Delaware law provides great flexibility in the design and operation of the entity. However, to use a DST in a Section 1031 tax-deferred exchange program, it must comply with the requirements of IRS Revenue Ruling 2004-86 so that a beneficial interest in the trust is treated as a direct interest in real estate for tax purposes. The trust also must satisfy lender requirements, especially if the loan is to be securitized.

Delaware Statutory Trust DST Investments

SIMPLIFIED 1031 EXCHANGE SOLUTION

Purchasers of DST-structured real estate investments typically enjoy monthly cash flow from high quality properties. A Kingsbarn DST investment affords purchasers an investment free of day-to-day management responsibilities as Kingsbarn and its third-party management partners professionally conduct all property and asset management.

Kingsbarn facilitates the entire transaction:
Identifying the real property
Professional due diligence reports
Securing financing (non-recourse to DST Investors)
Coordinating with qualified intermediaries
Providing all organizational and offering documentation
Providing a legal Tax Opinion
Professional third party property and asset management services
Monthly check issuance to investors (by check or direct-deposit)

DST ADVANTAGES

A DST-structure is a "pooled-equity" investment. DST purchasers realize significant benefits by acquiring a property that is typically a higher-quality asset than could be purchased individually. Investors looking for stabilized, core properties often favor a DST-structured investment.
Provides investors with lower minimum equity requirements
Provides more simple and efficient closing process
Provides investors protection against loan recourse liability
Provides the ability to act quickly when issues arise
Provides investors greater security against rogue investors
Provides a less complex structure for investors
Eliminates annual LLC fees to investors
Eliminates need for investors to provide tax returns to lenders
Professional third party property and asset management services
Monthly check issuance to investors (by check or direct-deposit)



Kingsbarn Real Estate Capital is a leading DST real estate sponsor that works with investors in California. Our California interstate offerings are unique to the industry and allow California investors to be advised by licensed real estate professionals.

KB Exchange Trust provides real estate investors throughout the U.S. with 1031-exchange eligible property ownership through its Delaware Statutory Trust ("DST") programs.

SINCE 2021, KINGSBARN HAS ACQUIRED EIGHT FLEET FARM STORES WHICH
IT BROUGHT TO MARKET AND SOLD AS $325 MILLION OF HIGH YIELD DSTs

This website does not offer to sell, or a solicitation of an offer to buy, securities. Offers can only be made through the Private Placement Memorandum which contains various and important risk disclosures. This web site does not purport to be complete and should be viewed in conjunction with the Private Placement Memorandum. An investment of this sort is speculative and involves a high degree of risk. Projections of future performance contained herein are based on specific assumptions discussed more fully in the Private Placement Memorandum and do not constitute a guaranty of future performance.

DST Interests in any of the properties displayed on this website may be sold only to "accredited investors," as defined in Regulation D under the U.S. Securities Act of 1933, as amended (the "Securities Act"), which, for natural persons, refers to investors who meet certain minimum annual income or net worth thresholds. Offers and sales of DST interests have not and will not be registered under the Securities Act or the laws of any U.S. state or non-U.S. jurisdiction and may be offered only pursuant to an exemption from such registration. Neither the U.S. Securities and Exchange Commission nor any other regulatory authority has passed upon the merits of an investment in the DST Interests, has approved or disapproved of DST Interests or passed upon the accuracy or adequacy of this website and any supplementary materials describing the DST Interests. DST Interests are also not subject to the protections of the Investment Company Act of 1940, including the limitations on self-dealing, affiliated transactions and leverage contained therein. DST Interests are subject to legal restrictions on transfer and resale in accordance with the governing documents of the Trust and applicable securities laws, and investors may be unable to sell or transfer their DST interests. In addition, there is no public market for the DST interests and no such market is expected to develop in the future. Investing in the DST securities involves risk, and investors should be able to bear the loss of their investment.