DST GROWTH INVESTMENT

ALL EQUITY DSTs TARGETING LAND

Walton’s Delaware Statutory Trust (DST) Growth offering is a 1031 exchange strategy designed for United States residents, who are accredited investors, searching for a growth-focused investment, a capital gains deferment solution and potential preservation of capital through a hard asset.

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TARGETING GROWTH FOR DST INVESTORS

Overall returns from DST structures involving land have the potential to be higher than traditional DSTs that primarily focus on income producing properties, such as tenant occupied developments that generate monthly or quarterly income of 3-5%. While both strategies have their own merits and risks, the return potential of a land-based DST can help investors diversify their DST portfolio with a focus on total returns.

INVESTMENT STRATEGY

Our land acquisition team is constantly filling our DST pipeline with land that meets our DST criteria including size and near-term development. Once Walton acquires the land, it is held for a period of time before a home builder prepares the land for home development.

What is a 1031 Exchange?

A 1031 Exchange, named for Section 1031 of the US Internal Revenue Code, is a transaction approved by the IRS that allows real estate investors to defer the tax liability or capital gains taxes on the sale of an investment property. DSTs are considered direct property ownership for tax purposes which makes them eligible for tax-deferred 1031 Exchanges, recognized by the IRS as qualified replacement property for the transaction.

What is a DST?

A DST, or Delaware Statutory Trust, is a legal entity that, if structured properly, allows investors to own undivided fractional ownership interests, treated as direct ownership, in professionally managed institutional grade real estate offerings around the US.

Who can invest in a DST?

An accredited investor who resides in the United States can invest in our DST offering. Investors who are looking for a replacement property to defer their tax liability are typical candidates for a DST investment, but our offering is open to all accredited investors who would like to defer their tax liabilities. DST interests are sold as securities, so investors must work with a registered broker-dealer or registered investment adviser.

How does the Walton DST investment work?

Walton’s DST offering is a private placement structure that includes a debt free, 100% equity investment opportunity that uses land needed by national home builders for new home development.

Walton acquires land using an “all cash” transaction in high growth areas throughout the US
After a required hold period, a national or regional home builder agrees to buy the land by signing a purchase sales agreement (PSA)
The home builder prepares the land for home development through an entitlement process
Distributions may be made to DST investors if, as and when land is sold to the home builder for a profit when they are ready to build homes

Does the Walton DST investment appreciate in value?

Walton anticipates traditional appreciation based on market conditions, and the potential increase in value to the land upon entitlement completion by the builder. Once a builder signs a purchase agreement for a land parcel they expect to buy, they begin the entitlement process and eventually purchase the land from the DST to build homes.

The investment in the land made by the home builder during the purchase agreement process is passed on to DST investors at the time of the land sale. For the DST investor, they have invested in a DST that owns property in the path of future development. The DST does not modify, either legally or physically, the property it owns. Instead, the DST’s investors have acquired an interest in real estate for the purpose of realizing on its future value. However, there is no guarantee of any returns on any DST investment.

IMPORTANT DISCLOSURES

Investments in offerings sponsored by Walton Global (Walton) involve certain risks including but not limited to tax risks, general real estate risks, risks relating to the financing on the applicable property, if any, risks relating to the ownership and management of the property, risks relating to private offerings and the lack of liquidity, and risks relating to the Delaware statutory trust structure. In addition, Walton can give no assurance that it will be able to pay distributions in whole or in part or within any anticipated timeframe or at all.

Important Risk Factors to Consider (should be the same as your 1031 risks in the brochure)

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 Accredited Investors Only. This communication is not an offer to sell or a solicitation of offers to purchase any securities. Offers and sales of interests shall only be made only to persons who qualify as accredited investors under applicable federal law and only by means of a confidential private placement memorandum (the “PPM”) that fully discloses the potential benefits and risks of the investment opportunity and subscription documents setting forth the definitive terms of the offering and the investment opportunity. This communication has not been approved or disapproved by the U.S. Securities and Exchange Commission (the “SEC”) or the securities regulatory authority of any state, nor has the SEC or any security regulatory authority of any statement passed upon the accuracy or adequacy of statements in this communication. Any representation to the contrary is a criminal offense. Investment involves a high degree of risk and is speculative as will be described in detail in the PPM and subscription documents. This communication does not constitute legal or tax advice to any prospective investor. Prospective investors must consult with their own legal, financial and tax advisors regarding the consequences to them of any prospective investment opportunity.