DSTs brokers and due diligence

[Eugene Cheng]

I am in the (extended) identification window and looking into the DST options. I have been in touch with a few brokers like 1031cwondfunding, realized, and some smaller local ones.

I often see a DST offered by all of them with similar fees. So how do I pick one from the other? can I use that to my advantage to negotiate a lower broker commission?

I see people emphasizing the due diligence on DSTs. However, reading these PPMs is a major headache due to lack of any experience and background in commercial real estate -- I've only invested in small residential properties (1-4 units). I know how to evaluate these residential ones but I have no idea what/how to check a 200-units apt DST!

So how can I learn to evaluate multi-family DSTs? simply listening to the brokers' sale pitches is equivalent of flying blind to me.

Thanks.

(I know the general pros / cons of DSTs and I am not committed to invest them. But I would like to learn my options as much as possible, given the low RE inventory on the market)

[Eugene Cheng]

Originally posted by @Dave Foster:

@Eugene Cheng, Plan on spending equal due diligence on the broker and offering! There are billions of DSTs out there. And billions of brokers with the right license. A great DST broker is going to be equal parts Real Estate investor (to evaluate the actual real estate from an investors point of view), Investment banker (Because many times the value of the property lies in the quality of the leases, revenue streams, and financing), and SEC compliance officer (obviously).

Thank you Davie. If you know a great DST broker could you PM me?