DSTs, Taxes, PPMs & Raising Capital

[Bruno Araujo]

Hello all, I am a general partner in apartment syndications and have a tax/legal question. Many in my investor network have indicated that they want to sell their rental properties, and move those funds into our deals.  One of the recurring objections however is taxes, my investors don't want to incur the capital gains taxes.  The deals I raise capital for have very high minimums to do a full 1031, far above what the average investor in my network has.  

I spoke with my securities attorney, and he mentioned its possible to set up a DST which my investors could roll their 1031 money into for our deals. They would sign my PPM, and the DST would sign the PPM for the deal itself. So my question is mainly centered around taxes, does this sound like a feasible option to avoid the taxes?

How can this be done?  Any of you out there who are GPs bringing in capital, how do you all tackle this?