Trading Fields for Treasure: A Kingdom Perspective on 1031-DST Real Estate Exchanges
What if the field you sell today could plant seeds of eternal treasure tomorrow?
In Matthew 13:44, Jesus says, “The kingdom of heaven is like treasure hidden in a field, which a man found and covered up. Then in his joy he goes and sells all that he has and buys that field.” The story is simple, but the wisdom is profound: the man recognizes extraordinary value and acts decisively—trading what he has for something far greater.
That same principle can apply to the way we think about real estate stewardship. Many investors hold highly appreciated properties that have served them well over decades—but now come with burdens: active management, capital gains taxes, and limited flexibility. A 1031-DST (Delaware Statutory Trust) exchange offers a modern tool to align those assets with both wise financial strategy and Kingdom-minded purpose.
Under IRS Section 1031, property owners can defer capital gains tax by exchanging a relinquished property for a like-kind asset. With a DST, the exchange is into a professionally managed portfolio of institutional-grade real estate. Instead of managing tenants, repairs, or leases, the investor enjoys passive income and diversification—while still deferring taxes.
Here are Five Potential Reasons to Consider a 1031-DST Exchange
A 1031-DST lets you defer capital gains taxes, keeping more of your investment working for you.
It offers built-in diversification by spreading your investment across multiple properties and markets, potentially reducing the risk of any one tenant or market.
You can enjoy passive income without the hassles of property management.
It opens the door to align your investments with Kingdom purpose—supporting redemptive real estate projects that reflect your faith.
And it simplifies charitable giving and estate planning, making it easier for ministries or donor-advised funds to receive your legacy.
To be fair and balanced, it’s important to note some of the risks and limitations of a 1031-DST and why it may not suit every investor.
DSTs are generally illiquid, meaning your funds are tied up for the life of the investment and cannot be easily accessed or sold. Investors relinquish control, and all decisions about the properties are made by the sponsor so poor management or overly optimistic assumptions can negatively impact returns. Market risks still apply, including property value fluctuations, economic downturns, and tenant instability. And finally, the tax rules surrounding 1031 exchanges are complex, and mistakes in timing or structure could trigger unintended tax consequences.
Just like the man in Jesus’ parable, a 1031-DST strategy invites you to sell a familiar field—not out of loss, but out of joyful expectation for something richer. For the Kingdom-minded investor, this is about more than financial gain—it’s about faithful transition. It’s about stewarding assets in ways that reflect God's purposes and multiply their eternal reach.
As you consider your next move, remember: wise investing isn’t just about building wealth—it’s about building the kind of legacy that will echo into eternity. While a 1031-DST may be helpful in some scenarios, it is not a one-size-fits-all solution. We recommend consulting a qualified financial advisor or tax professional to ensure this strategy aligns with your personal goals and stewardship values.
In the words of Brian Fikkert, co-author of When Helping Hurts, “Real estate is not just about buildings. It’s about shaping neighborhoods, restoring dignity, and giving people a place to belong.”
