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Updated 10 months ago on . Most recent reply
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how to avoid DST high commisions?
Soon I will sell my 1.3M rental propriety and I'm looking to 1031 into a DST. One of the biggest complaints with DSTs is the high cost/fees associated with them. A big part seems to be the broker commission (8-12% from what I have seen). Is it possible for an investor to work directly with a DST sponsor and "save" some/all of the commission that would have been paid to a broker? It's a pretty big chunk for the amount I'm looking to invest.
Any suggestions would be appreciated.
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@Alberto Cioni Typically, the broker commissions within a DST investment are 4-6%, and the rest of the fees are used by the sponsor to structure the offering, marketing fees, lender fees, reserves (any remaining returned at disposition), etc. While these fees are higher than purchasing another rental property, it's a tradeoff to investing in a passive real estate investment and not having to put more money into capital calls if there were big ticket items needing repairs in a rental.
Conner Jackson
Tangible Wealth Solutions