Looking for a New 1031 Replacement Option? Introducing the DTS

In our latest episode of the Exchange Brothers, David and Tom dive into Appreciation Homes and the Direct Title Security (DTS) model, a new approach that gives investors direct ownership of real property with the passive benefits of a triple-net lease.

Tune in as Derek Vogel and Forrest James of Appreciation Homes cover how the DTS works, how it could solve major pain points of the traditional DST, and how investors can use it to gain control, liquidity, and flexibility, without sacrificing passivity. The DTS also gives investors the ability to cash-out refinance post-acquisition, a feature many want, but often can’t access in traditional deals.

01:28 – What Are Appreciation Homes?
04:30 – How the DTS Model Was Created
07:20 – DTS vs. DST Explained Simply
08:18 – How DTS Works (Ownership + Long-Term Lease)
10:29 – Property Types, Markets & Inventory
11:31 – Key Benefits: Control, Liquidity & Risk Reduction
18:07 – Debt, Leverage & Cash-Out Refi Options
23:03 – Returns & Who This Is Best For
58:56 – Closing Thoughts & Next Steps

Have questions? Drop them in the comments, we’re planning a follow-up episode!

📞 Connect with our guests:
Forrest James – [e-mail]
Derek Vogel – [e-mail]

🎙️ Hosted by David & Tom Moore, The Exchange Brothers | Equity Advantage 1031Exchange.com

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

For more information on Emerson Equity, please visit FINRA’s BrokerCheck website. You can also download a copy of Emerson Equity’s Customer Relationship Summary to learn more about their role and services.

General Disclosure:

Not an offer to buy, nor a solicitation to sell securities. 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. Any information provided is for informational purposes only.

Securities 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.

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