All Forum Posts by: Kyle Winther

Yes, as a general rule, a well-structured DST should provide full transparency in its financials, including Master Lease Payments. Since the Master Lease is a key operating expense, it should typically be reflected in the proforma cash flow statement. If it's not disclosed, it's worth asking the sponsor for clarification, as omitting it could impact the accuracy of projected returns and lender evaluations.

Be care when they try and offer a no load fee. The RIA fee is 1% per year, and is deducted from your equity yearly, thus reducing your income. It can help when it comes to the appreciation potential. Those who are looking for the cash flow should pay the front end load. 

Sorry to hear about your bad experience. Choosing is quality DST sponsor with a strong track record is essential when making a large financial tax deferred decision.

So sad to see this happening to real estate investors looking for quality companies with passive income that should last. This is why it is critical to choose a quality DST sponsor with a strong track record.

The accelerated depreciation benefits can help offset the income you receive from the DST. There are a lot of factors to consider when investigating a DST. You should always heed the advice of your CPA for tax projections and depreciation befits for your current tax bracket and situation.

Dont forget to mention you can do a 1031 exchange into a Delaware Statutory Trust (DST)

Great article discussing the benefits of the Delaware Statutory Trust in a 1031 exchange. Well written and great advice! 

 Well said my friend. 

 John,

The biggest and most important factor of a DST is the tax advantage of the tax deferral benefit. You also get to take accelerated depreciation from the dst property. The DST is not for everyone. It comes in handy as a backup plan, for those looking to exit real estate with large cap gains, or those who are just tired of being landlords and looking for passive monthly income.

DST's are a great option if you cannot find a replacement property or at the minimum identify a dst prior to your 45th day as a back up plan.