This episode explores the rising influence and opportunity in Delaware Statutory Trusts with Ben Carmona and Ehud Gersten of Perch Wealth.
The Crexi Podcast explores various aspects of the commercial real estate industry in conversation with some of the top CRE professionals in the space. In each episode, we feature different guests to tap into their wealth of CRE expertise and explore the latest trends and updates from the world of commercial real estate.
In this episode, Crexi’s Yannis Papadakis sits down with Ben and Ehud to discuss all things Delaware Statutory Trusts, which are entities used to hold title to commercial real estate investments that minimize investment risk and diversify owners’ portfolios. Their wide-ranging conversation includes:
- Introductions, career paths, most important lessons learned
- What is a Delaware Statutory Trust (DST), and why do they matter?
- The advantages of a DST over other passive investments like NNN leases
- Why DSTs are an untapped investment opportunity and how owners can take advantage of the investment vehicle
- The flexibility of DSTs for tax purposes, estate planning, and other creative uses and solutions.
- How to learn more about DSTs and find the best option for your investment goals.
- And much more!
Listen to the episode here:
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Prefer video? The episode also lives on our Youtube page:
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About Ben Carmona:
Ben Carmona is a managing partner at Perch Wealth. With more than 20 years of applied experience, Ben is an expert in real estate investments, structures, and strategies.
During his tenure at some of the most prominent, industry-leading investment management firms, including Cantor Fitzgerald, NexPoint Advisors, and Capital Square Advisors, Ben was involved in acquisitions, finance, due diligence, underwriting, product structuring/syndication, and sales management. Through his experience, Ben has developed a comprehensive understanding of alternative investments and the financial services industry with deep knowledge and expertise in structured 1031 products – tenancy-in-common (TIC), Delaware statutory trusts (DSTs), non-listed real estate investment trusts (REITs), non-listed business development companies (BDCs), private equity and debt funds, interval funds, and other private placement syndications.
Ben holds a Bachelor of Arts (BA) degree in real estate finance, from San Diego State University, as well as Financial Industry Regulatory Authority (FINRA) series 7, 24, and 63 licenses.
About Ehud Gersten:
Ehud Gersten is a managing partner at Perch Wealth. In addition to being a licensed securities professional, focusing on 1031 exchanges and Delaware Statutory Trusts (DSTs), Ehud is also a licensed California attorney and real estate broker.
For more than a decade, Ehud owned and operated a highly successful law firm in San Diego, focusing on real estate and consumer rights. He has advocated on behalf of many clients, including homeowners’ associations (HOAs), real estate developers, and investment property owners, in both California state and federal courts. He is also admitted to practice before the U.S. Supreme Court. Ehud has been repeatedly recognized by his legal peers as one of the top litigators in San Diego County, featured multiple times in both SuperLawyers magazine and San Diego’s “Best of the Bar.” He has been interviewed and featured for his national real estate work by Bloomberg, the L.A. Times, the New York Times, and HousingWire magazine.
Ehud holds two degrees from the University of Auckland in New Zealand – a Bachelor of Arts (BA) in political science and a law degree. He also holds a Master of Laws and Letters (LLM) degree, with a concentration in intellectual property, from Boston University. He holds Financial Industry Regulatory Authority (FINRA) series 7 (general securities representative), 66, and 63 registrations.
About Crexi:
Crexi is transforming commercial real estate with advanced, integrative technology and data analytics designed to accelerate every CRE stakeholder’s success. From trading properties to machine-learning-powered industry Intelligence, Crexi’s intuitive CRE solutions accelerate transaction velocity and have empowered over 2 million monthly users to close $330 billion in deals and market over $2 trillion in property value.
General Disclosure
Not an offer to buy, nor a solicitation to sell securities. Information herein is provided for information purposes only, and should not be relied upon to make an investment decision. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing.
Securities offered through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.
1031 Risk Disclosure
- There is no guarantee that any strategy will be successful or achieve investment objectives;
- Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
- Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
- Potential for foreclosure – All financed real estate investments have potential for foreclosure;
- Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
- Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
- Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits
