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Posted over 7 years ago

Who should consider a DST Investment?

  • Investors who are seeking to defer their capital gains tax but don’t want to be a landlord anymore
  • Investors who are seeking potentially greater cash flow and possible appreciation return potential than they are currently receiving from their real estate investments. Note all investments, including real estate, carry the risk of loss in addition to possibility of gain.

  • Investors who are retiring or seeking a life style change and would like to take a more passive role in their real estate

  • Investors who wish to consolidate their holdings of multiple smaller properties into fewer large properties for ease of management

  • Investors who are seeking to diversify their real estate portfolio into higher quality investment grade real estate, but lack the experience, resources or capital required to manage or acquire larger institutional quality real estate.

  • Investors who are in their 45 day identification period and are seeking a viable replacement property option to satisfy their 1031 exchange or need a backup option in case their primary property falls through

  • Investors who have excess proceeds in their 1031 exchange and rather than pay the capital gains tax, would like to replace it with more property to receive 100% tax deferral.

Caveat Emptor

No investment is completely risk-free, and DSTs are no exception. There are four principal risks associated with DSTs: real estate risk, operator risk, interest rate risk, and liquidity risk. Be sure to do your research prior to investing in institutional-grade investments to mitigate your risk.



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