QI Charge for one DST with multiple properties

[Cathy Zhong]

My QI offers 3 free replacement properties purchase exchange, then they charge fees for each extra properties exchanged.

Now that I will invest in one DST with 4 or more multiple properties. The purchase is only one transaction ( wire the fund to sponsor), Is QI allowed to charge fees for each extra property even though they only do one transaction?

Thanks in advance!

Cathy

[Brandon Bruckman]

Typically QIs view DSTs as one property regardless of how many actually properties are within the DST. Of course, all fees and charges are negotiable between you and the QI.

Hope that helps.  

[Dave Foster]

@Cathy Zhong, There are no pricing laws for QI work. They are allowed to charge what every they want. Your fee will be whatever is negotiated with them. If you are using one 1031 exchange to purchase a DST that may contain several assets then you are still purchasing only one DST. And I would think that is normally one purchase. But you've got to figure this out with your QI.

[Jane S.]

Do you mean you’re exchanging 4 of your properties? If so, my QI would add on after the first property but probably a smaller fee.

[Cathy Zhong]

I sold one townhome, I purchased 3 DSTs for my replacement properties:

DST1 has 4 buildings.

DST2 has 1 building.

DST3 has 1 building.

So I have tiny shares spread for total 6 buildings, but the whole DST purchase proceed involved only 3 transactions (3 closings), that is why I revoked previous identification form and listed only 3 DST as our exchange purchases in the new form. Hopefully this will clarify the QI fee issue. My experience is that you don't need to fill the ID form if you already purchased all DSTs for your replacement properties within 45 days of identification period. If my QI deduct the fees for what they believed extra properties inside DST, I would say goodby to them forever.

[Cathy Zhong]

This is a follow up of the question I have asked regarding QI fee for DST with multiple properties:

Brandon Bruckman was right, my QI has returned my account balance without deducting any $$ for 3 DST purchase.

The whole purchase was very smooth and efficient; I already received pro-rated investment return for month of June. Thanks to Joe and Carl Sera from Sera Capital helping us guild through the entire process. Their website provided very useful information to understand DST investment concept.

Cathy