All Forum Posts by: Joe Sera

@Kari Kraus 

Most people that own multiple properties like the control of active management. Unfortunately, age or lack of interest forces them to seek a more passive tax efficient route. What we’ve observed is that they break down the problem into smaller pieces and sell just 1 property to feel out passive investing. They try it on for size.

@Jeff S. Agreed, nothing beats direct ownership. QOZ funds will more than likely make you a higher rate of return than DSTs since they inherently are higher risk/higher return investments. Unfortunately they don't work in all situations. For example, if you have a low cost basis and have refinanced, then a 1031 into a DST is better.

@Larry Lyons Two for one special....

You might want to take a look at some of these qualified opportunity zone (QOZ) funds.  This would allow you to start investing in real estate AND avoid the capital gains tax on the sale of your business at the same time!

@Jeff S. You and a million other investors all over the country are facing this same problem! What options are you looking at and what are you not happy with? 

You should also look into qualified opportunity zone (QOZ) funds.

@Vladimir Kotomin You can't purchase a DST directly from a DST Sponsor, you must use either: a commission based Broker-Dealer (BD) or Registered Investment Advisor (RIA).  

@Mike Martin A few insights on the mechanics of the DST Industry that will help:

1.) "DST Sponsors" are the investment companies that purchase and package the real estate as a DST.

-2.) DSTs are securities and are registered with the SEC.

3.) You can't purchase a DST directly from a DST Sponsor, you must use either: a commission based Broker-Dealer (BD) or Registered Investment Advisor (RIA). 

I would recommend that you use a RIA. Full transparency...I am biased as my dad and brother are wealth managers and provide advise on DSTs.

You want to work with a RIA that can help you understand how DSTs fits into your overall financial picture and not someone that's just looking to make a commission off of you (aka  Broker-Dealer).

Both BDs and RIAs are going to able to offer access to the same DSTs, but there are several conflicts of interest associated with the BD sales model....(happy to elaborate more if you'd like)....but the biggest issue I see is that you end up paying 2X more when working with a BD vs a RIA that's acting as your fiduciary.