What is a Deferred Sales Trust?
Control over your Equity
The Deferred Sales Trust is a legal contract between you and a third-party trust in which you sell your investment property to the Deferred Sales Trust in exchange for a contractual promise to pay you a certain amount over a predetermined future period of time via an installment sale note or promissory note. It is often referred to as a "self-directed note" because you have control over the terms of the note. The Deferred Sales Trust gives you the ability to control your capital gains tax exposure, reinvestment terms, and installment payments made to you from the trust.