All Forum Posts by: Brandon Bruckman

You could certainly use the DST as a backup plan. Say you find two properties you like, you could identify those along with a DST by 45 days. That would give you some time to negotiate on the properties before the 180 days is up.

The company that organizes the DST (Sponsor) has full discretion as to how long the investment is held. Hold time can range from as short as three years to about 10 years. Average hold time on programs from larger sponsors has averaged about 8 years.

Hope that helps. 

These firms all appear to be broker dealers. Broker dealers will typically charge you more to invest in the same DST as a Registered Investment Adviser will. (full disclosure, I am an investment adviser. But call these shops, ask them what they charge).

I'd also ask these firms to describe the relationships in your question.  The answer should be satisfactory to you or you should walk away.  

Hope this helps! 

Typically QIs view DSTs as one property regardless of how many actually properties are within the DST. Of course, all fees and charges are negotiable between you and the QI.

Hope that helps.  

Carlos - the minimums are usually higher, however working with a financial adviser that does a decent amount of business with DST/REIT sponsor firms you can typically get the minimums down to DST levels (100k). Minimum investment amount are self imposed rules by the sponsor that they are willing to bend all the time.

Dig into the investing rules for the REIT. You can find this in the prospectus / PPM / offering document. I struggle with very non-specific rules about what the REIT can invest in. The "blind-pool" nature allows some REITs to invest in whatever they want whenever they want. I would prefer a more focused investing objective.

What Jon Taylor said plus you need to evaluate the financial broker or RIA your working with plus the sponsor of the DST deal. The experience and track record of both of these parties is as important as evaluating the actual deal.

I'm also  

** Not a CPA/Tax strategist, nor a lawyer... **

In this case of syndication you are investing in a partnership, not an owner of actual real estate. You would need to use a tenant in common structure in the syndication to complete a 1031 exchange. A smart real estate lawyer could help you figure that out.  

Yes, there are a handful of these in the market.  Its rare in multifamily assets, but we do see no debt on industrial and senior living deals. 

Kenneth - deferring the tax makes sense, but two issues with using a DST in your situation. 1) DSTs are illiquid. You can not pull funds out when you want to take advantage of market conditions. The decision to sell the project rests with the sponsor / operator of the DST. 2) DST is simply a structure around real estate. You are dealing with the same market conditions you are trying to avoid.

Evaluate any DST deal the same way you would if you were buying the real estate yourself. Also, similar to the crowdfunded deals, evaluate the sponsor. Each DST offering document contains the sponsor's track record. Use this as a starting to point to make sure you are investing with a good steward of your funds.

Hope that helps.  

Hello BiggerPockets - I'm looking for a great speaker for our May apartment association meeting.  We are looking for a speaker with deep experience in direct investment in real estate that can share best practices they used to grow their business.  Education focus please, not a sales pitch.  

We are in Milwaukee WI and would love someone to be in person.  

Thanks Brandon