Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago,

User Stats

1,092
Posts
752
Votes
Mark H. Porter
  • Investor
  • SC NC, VA
752
Votes |
1,092
Posts

Due Diligence on 1031/DST

Mark H. Porter
  • Investor
  • SC NC, VA
Posted

I recently received a property memorandum for a DST and was surprised to see the the offering was 23% over the appraised value of the property. It was explained to me that this delta was because of real estate and legal fees necessary for the transaction. I called foul and backed off.


Why would Uncle Sam have a tax rule that allows this?  I know everything is negotiable, but at a 6.5% return on my investment I’m not even eating down any of the principal for years.  Thoughts?