Experiences with Zero-Coupon DST

[Carlos Ptriawan]

Any of you had experience buying zero-coupon DST as part of the replacement of debt ? I know I can read the PPM per-se but wants to understand if you need to pay an additional fee on yearly basis ? or is there any other hidden factor ? I guess the fee would be one time only.

With the rising interest rates, I think it's just easier to buy a replacement property with cash from the equity; and for the mortgage required I will just buy zero-coupon. I do understand that the typical zero-coupon has 86% LTV w/a value of 100k. I know there's still potential boot somewhere but it's ok to manage.

So if the house is sold for $1m with 50% remaining mortgage. I willl use 50% cash to buy home and 50% ZC DST. I just want to understand all the fees and that. In this case, it seems I need to buy at very least FIVE (100K) ZC-DST.  Understanding the fee and obligation part of  ZC DST is important to me.