All Forum Posts by: Account Closed

 @Amit M. unfortunately because of the securities laws set forth by the SEC and FINRA that those of us in my field must follow, we are not allowed to post about DSTs and it is always frustrating to see someone who does not have to follow those higher guidelines speak about them as if they know with opinion based comments, especially a real estate agent that likely sees them as competition for what he can sell.  BP should not be a pulpit to preach and promote only what you sell and disparage everything else.  This is a real estate forum and DSTs are a proven successful strategy for some investors.  Like ALL investments, there are important considerations, of course.  If you'd like to learn more, I need to speak with you on the phone as do all of my colleagues.  I am confident that after a 5 minute call you will understand my point.  I always offer referrals of other investors for potential clients to contact to learn how they have worked for them as do I am sure most, if not all, of my colleagues and I have clients on that list that have been invested in them for over 10 years.  Best regards.

This forum is becoming heavily opinion and not fact based unfortunately. 

@Joel Owens 'Investors just need to go into DST's with their eyes wide open instead of sometimes thinking they can just put money in there without very much work or discovery and everything is going to go perfectly.'   

I'm not sure who would ever present that thought process to an investor regarding DSTs or any real estate investment for that matter. 

Although I've heard people on this forum buying rental properties across the country that they have never even visited so I'd say the same to those people.  

DSTs are for sophisticated real estate investors that are moving on to a more advanced estate and/or portfolio investment strategy than fix and flips or buy and holds would offer.  Anyone interested in a DST should purchase those investments from licensed securities brokers that have experience in that marketplace and can advise of all the important considerations and suitability issues.  Securities brokers are held to a much higher standard of fiduciary responsibility than real estate agents and the properties have more due diligence materials available than most people will even take the time to read.

I clearly have real work to do and don't get on this forum as often as you do and merely replied to your misstatement about what I 'sell'..  

I have to politely disagree with @Joel Owens regarding DSTs. As a security (as opposed to real estate) investment option there are different suitability issues to take into consideration. For the clients that they are a good fit for, they work beautifully. There are MANY happy investors in DSTs from many reputable sponsors with long track records. These clients have returned to them when the properties roll over by completing a subsequent 1031 into another DST. To make a blanket statement that they are bad does a disservice to a different segment of real estate investing that works well for people who maybe want to preserve their investment, but not have management of their real estate portfolio be a full time job. Joel, as a moderator I'd hope you would be less subjective in your comments. An educated and experienced broker of DSTs can discuss the pros and cons with clients and more importantly will point out the good and bad points for each sponsor as well as each property offered. This last point is one of the best reasons to work with a broker as opposed to buying directly from a sponsor.

@Brian Bradley I don't sell Deferred Sales Trusts. I don't know why you keep saying that. 

This is absurd to me. Your personal attacks are ridiculous. If anyone reading this is interested in learning more about Delaware Statutory Trusts that you can buy shares as an accredited investor of as opposed to what Mr. Bradley is promoting here, you can reach out to me via private message. They are two very different topics. An even different topic is the DST that Brian thinks I sell - that I do not sell - Deferred Sales Trust. I think the takeaway here is that real estate investing has some advanced topics that do not belong on a forum blog.

Brian, please stop including attacks on me in your comments. There is no reading comprehension issue on my end - I work with Delaware Statutory Trusts  as well.  Just pointing out a different idea and use for them for investors in the effort to clarify for people reading this.   The fact that you would accuse me of being an uneducated person that can't read speaks more to your character and experience than mine.  

Wow @Brian Bradley. All I can saw is wow. I sell DSTs all day every day and have been since they came on the market as securities. Rude is an understatement to describe your post. Anyone that would search BP for DST in considering them as an investment and seeking to learn more that ran across your post would be thoroughly confused by it. Sadly, you must not have any experience with DSTs as an investment vehicle. You might spend some time researching what is a very robust and well educated industry surrounding these types of investments.

Please leave me out of your defensive responses going forward.  

Timing of the sale of each might be an issue, it's a complicated strategy you will want to think through and plan for before you list either property.  You'll want to be sure you follow the timing rules of the 1031 and with two properties selling and going into one buy it's a bit complicated.  I'd be happy to talk it through with you if you'd like.  

@Kris Benson there is a specific industry devoted to what you are asking.  I would suggest you start poking around with the broker dealers that specialize in this space as well as the current sponsors.  The broker dealer community raises the equity for the sponsors and interacts with the individual investors.  And yes to the other question, there are typically minimums required as well as investors have to be accredited.  It's not really a BP community topic so much as more advanced real estate investing strategy. 

There are investments like the TIC you mentioned, however that structure is not as common now. It will be difficult to find much online as securitized real estate has to follow rules set by the SEC. Essentially, for accredited investors you can invest in syndicated type deals and own a % of a professionally managed property.

I don't want to be the negative person here, however Bend has historically cycled fiercely and we are back up at the way too high price range.  It is very expensive, long term gain is a complete gamble.  There is really no job base or student base to support the high rents.  It's more rentals are for people to live in temporarily while they build or search for their house to buy.  No long term renters in Bend can afford the rental prices.  

I think there are better markets for investments personally.  Look at historical prices from 2006, 2012 and now and decide for your self what you think may happen but keep in mind you will be gambling.  There is absolutely no guarantee that these increases will be sustainable, Bend is just the 'hip' place again.