Delaware Statutory Trusts-Problems?

[Jeff S.]

Talking with an investor who is in our group that sold 3 triplexes and invested $850k into a DST as part of her retirement plan. She invested in multiple apartment houses. One of the apartments started with 200k in reserves and they went through those. She was getting $4200 per month which was reduced to $3300. She has 4 units left but is not trusting DST's.

For those poor souls that invested in hotels during covid and were expecting income got to take an income vacation. 

Anyone remember TIC's? Someone explain to me why DST's are any better than a TIC's disaster.

[Chris Seveney]

@Jeff S.

Well a DST is an investment vehicle and some do really well and some do not just like a reit. Private fund

What it comes down to and is becoming

More and more evident every day is the sponsors experience and level of risk.

There are a lot of sponsors who took on significant risk the past five years because they needed to deploy capital or were inexperienced and those flaws are coming to light today.