All Forum Posts by: Edward Fernandez

@Vladimir Kotomin

DST sponsors do not sell directly. The way DST sponsors raise their equity is through the financial services industry. Selling direct from sponsors is a huge no-no in our industry. Without the financial services industry DST sponsors cannot raise any equity.

@Matthew Orton

A Delaware Statutory Trust would help as well.

At lease you can ID them and then have time to do your Due Diligence.

But if there is equity available you are almost guaranteed to close.

I hope this helps!!!!

@John Corey since 2004

@Michael Beur Michael it's a pleasure meeting you. The answer is yes we arguely have the largest inventory of DST's in the country. We currently have 35 of them available.

To date we have had nothing but a positive experience with all our clients and with all the sponsor we have represented.

I hope this helps!

@Matyas A. S. Yes i do agree with your analysis.

It is important to underwrite a DST for it break even point. The difference between the purchase price (price the sponsor paid) and the offer price ( the price investors pay). There are two tools that are needed to accelerate the process. The first NOI growth of 2.5% to 3% a year, the second is principal pay down sooner then later.

NOI growth increases the value of the property and principal pay down builds your equity. This will allows for the selling of the asset sooner then later knowing that there is a high probability that the principal is protected.

Most Multifamily DST's use agency debt (Freddie or Fanni) that allows for 10 years of interest only. These DST's only have NOI growth. Right there you are losing one of the two tools. Other DST's have flat NOI but are paying down principal, again one of the two tools being used. And there are DST' that have no NOI growth and use IO for 10 years, those DST's are the kiss of death.

I hope this helps!!

@Sophia Griffies best of luck to you! If you change your mind or need any help in the future please let us know.

Cash out re-fi DST's are for large exchanges that are highly levered, this is when a cash out re-fi DST makes sense.

The cash out Reif DST's are highly levered 78-87% LTV. These DST's are not for everyone but they serve a purpose.

Great conversation. To set the record 1031 Crowdfunding is a sponsor in Senior Housing. The principals have been in the Senior Housing space for 15 years. The principals have also been involved in syndicating over $1 billion in industrial real estate as well as Senior Housing and has been in the Financial Services industry since 2001. 1031 Crowdfunding has the largest inventory of DST's in the country.

Inland,Passco are good sponsors and great people. We at 1031CF analyze deals based on the asset type geographical location and it's economic ability to overcome the upfront expense so that principle can attempt to be protected prior to suggesting any DST.

We are licensed advisors but also have over 20 years in the commercial real estate.

Again great conversation!

Delaware Statutory Trust are not for everyone, but when you get to that age of getting tired TTT the tenants, toilets and trash the DST could be a fit. We as a company underwrite every DST that comes our way and if it does not meet or underwriting criteria we will not post it on our platform. These DST's do come with 8-14% loads on equity but it may be cheaper then paying the tax or even buying something that has not been fully vetting because you have run out of time. We will be issuing DST's soon in Senior Housing and Self Storage with the intention of compressing those fees.