When David Sloan sold a multifamily asset in Las Vegas, he faced a dilemma many syndicators do: pay a massive capital gains tax bill or find a better solution. That solution was the Deferred Sales Trust (DST)—and it transformed the way he scales his real estate business.
Meet David Sloan: Multifamily Syndicator and Attorney
David Sloan is no stranger to real estate. Formerly General Counsel for Sunstone Hotel Investors (a publicly traded REIT), he now leads Next Wave Investors, which manages over $200M in multifamily assets across the U.S. With 19 full-cycle deals under his belt and another 7 under management, David focuses on high-performing markets like Las Vegas, Phoenix, Dallas, and Salt Lake City.
The Spanish Oaks Deal: Value-Add in a Booming Market
One of Next Wave’s latest acquisitions, Spanish Oaks, is a 216-unit Las Vegas property built in 1976. With 160 units needing full renovation, the project offers massive upside. The team expects 20%+ IRR over a 3-year hold. Financing includes a bridge loan, preferred equity, and a common equity raise of $4.2M.
Sloan believes strongly in workforce housing, and this project fits the bill: “There’s always going to be demand for C+/B- assets in growing markets like Vegas.”
Why David Chose the Deferred Sales Trust
When Sloan sold a Vegas property in 2020, he wanted to reinvest without triggering a hefty capital gains tax. He turned to the Deferred Sales Trust.
Key DST Advantages for Syndicators:
- Tax deferral on the gain
- Flexibility to reinvest in future syndication deals (including his own)
- No 1031 pressure or like-kind restrictions
- Liquidity and control of reinvestment timing
“The biggest attraction was the flexibility compared to a 1031 exchange,” Sloan said. “The DST allowed us to delay taxes and grow our business using the deferred funds.”
Overcoming the DST Learning Curve
Initially, Sloan was skeptical. “Like most people, I wondered: What’s the catch?” But after working closely with advisors and attorneys (Robert Binkley and Todd Campbell), the paperwork and process proved surprisingly simple.
“With the right team, it’s not difficult. The learning curve is real, but once you’re on the other side, it’s worth it.”
How the DST Helped Scale His Business
The DST became a powerful tool for scaling. Instead of handing over a large tax check to the IRS, Sloan reinvested the deferred gains into his own deals—fueling growth, returns, and opportunity for his team and investors.
“It’s like a self-directed IRA, but better for business. We can reinvest tax-deferred capital into real estate, delay taxation, and grow faster.”
Final Thoughts from David Sloan
“Investing with friends, family, and neighbors keeps us accountable. The DST gave us the capital and flexibility to scale without compromising values or taking unnecessary risks.”
Sloan’s story is proof: With the right strategy, smart syndicators can exit, defer taxes, and continue building wealth.
Thinking About Selling a Property?
You don’t have to rush into a 1031 exchange or hand over a huge check to the IRS. The Deferred Sales Trust may be the flexible solution you’ve been looking for.
👉 Schedule a free consultation today at CapitalGainsTaxSolutions.com
📞 Let us help you defer tax, gain liquidity, and grow your wealth.