Do you look closely at DST PPM-s yourself?

[Matyas A. S.]

I have reviewed several PPM-s for DST-s. I wonder what do others look at closely? I usually do look at:

* Property location, business plan, environment. Main employers? Is it a growing area? Personal prior knowledge or ask family friends, or google. Weather, other risks.

* Sponsor's prior experience, results.

* Forecasted cash flow. If they plan x% rent increase yearly, is that feasible?, etc.

Btw this is for a list of DST-s that my financial advisor already selected. I definitely could not look at all of them...

Recently I ruled out a DST that was a NNN lease on a medical use facility. It was a small property (compared to others I looked at) with 4-5 million valuation. Monthly rent was just under 300k. The expenses included 4200 bank fee per month and 15k asset management fee per month. I thought that these are unnecessarily high for a NNN property. (There is a single rent payer!)

[Brandon Bruckman]

@Matyas A. S. Some sponsors will supply 3rd party due diligence called a Mick report. This is very useful to dig in beyond the assumptions in the PPM.

There are also other independent 3rd parties that have deep experience reviewing PPMs. Send me a DM and I’ll share contact info.