Higher return DST offerings

[Amit M.]

I recently received a mailer from Kay properties of 2 DST offerings: an 8% and 10% preferred return (net lease income fund 28, LLC and opportunistic income fund 75, LLC). I was surprised as most DSTs I've seen are in the 5-6% return range.

So is there something new here? Is it that due to easily available higher interest rates (for safer investments), DSTs have had to up their game to attract investors? Or have higher return DSTs like this have always been available? I don't follow the DST market closely, so hoping those with in depth DST experience can comment.

It just seems to me that offering higher returns when we’re in a downward market = higher risks (although the above 2 funds claim to have no debt in their structure.) Something isn’t quite adding up here ;) 

[Jon Taylor]

It's not a DST

It's an income fund structured as an LLC. It's not a 1031 investment.