#329: DST’s, Passive Investing, The Seven Deadly Sins, and So Much More! – with Chay Lapin

Chay Lapin is a real estate investment and 1031 exchange expert.

Chay is a leader and specialist within the 1031 DST and real estate offerings market. In this role, he offers insight to clients nationwide concerning multifamily and commercial real estate, DST, TIC, and fractional NNN Properties. Chay has also sponsored and co-sponsored the syndication of over two million square feet of DST properties in the multifamily, net lease, industrial, and office sectors and invested in and operated multiple net lease asset residential properties throughout the United States.

As the president of Kay Properties and Investments, a national Delaware Statutory Trust investment firm, Chay and his team provide their clients with access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs, independent advice on DST sponsor companies, full due diligence and vetting on DST and a DST secondary market and so much more.

Prior, Chay was a four-time Academic All-American water polo athlete breaking records and receiving athletic awards at UCLA. As a top-ranked water polo athlete, Chay represented the United States in the 2012 London Olympic Games on the U.S. Men’s National Water Polo Team.


“You’re ultimately a passive investor, that’s become very popular over the last decade, and then very popular with the acceptance that we are not a crowdfunding site but the whole crowdfunding world and the big companies getting involved in venture capital has allowed people to get comfortable with the passive investing.”

“In the DST’s you can also do a cash investment into them. It’s not just for 1031 exchange funds… So you do a cash investment today, there’s that liquidity event, you can have an option with the current tax law to do a 1031 exchange.”

“And that’s the biggest difference between the DST structure and your typical GP structure or other funds is there’s no waterfall split with the trustee; 100% of the upside goes to the investors, but the sponsor, the trustee, gets a disposition fee.”


03:05 – Chay gives us insight into his background and education being a former Olympian, and how he got started in the real estate world.

06:42 -Chay tells us more about his internship experience.

08:08 – Chay tells us what a DST is and what role they play in real estate investment.

11:08 – Chay breaks down the DST structure.

12:45 – Chay lists out the investor profiles that he typically works with as a 1031 exchange expert.

16:54 – Chay tells us more about the technicalities of being a beneficial owner.

20:33 – What are some of the profiles of these properties in the DST world?

21:50 – Chay speaks about Kay’s Secondary Market and options for people who need to quickly get liquidity in an illiquidity market.

24:10 – Chay talks about leverage and debt on DST properties.

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