All Forum Posts by: Natalie Bender

@David Charles Edwards 

Due to the regulations around these investment products, I am limited on how much information I can share on a public forum without knowing your accreditation status, financial background, investment goals and risk tolerance. My email is below...I would be happy to do a deep dive on DSTs and see if they would be the best financial product for your specific needs.

My best advice would be to to look at quality sponsors that have a track record to back their reputations. There is always a cost to invest whether that is buying a new property or investing passively, however if the DST performs like projected the appreciation upon sale could out weigh those costs. Reach out any time.

@David Charles Edwards, as mentioned above 1031 into a portfolio of DSTs could be the right fit. A DST is a hands-off, institutional grade real estate investment (apartments, self storage, commercial, medical office, etc), that allows the investor the option to diversify into multiple markets and industries around the country. DSTs can provide steady cash flow, tax deferment and will keep pace with inflation as you are still invested in Real Estate, just passively. Professionals with decades of experience and proven track records do all the heavy lifting. Investors must be accredited. Here is a blog post written by Leslie Pappas, you may find it speaks to you.

https://www.biggerpockets.com/member-blogs/7993/48729-are-your-rental-properties-weighing-you-down

@David Song work with an experience qualified intermediary to help facilitate the 1031 exchange of two properties into 1. I would recommend Excel 1031, Weiming Peng, he is facilitating the exchange of 6 properties into 3 DSTs for a client of mine. Give him a call and he can walk you through the difference scenarios that may arise. 510-316-8078

@Angela A. My family is in the exact same position as you. We own a 1 BR in PB bought in 2010 with a 3.85% 15 year loan (refied in 2015). It has appreciated almost 2.5X of the original purchase price, however the cash flow is typically $25 in the red every month sometimes more with maintenance issues. 

I am in the Alternative Investment space and help investors transition from active real estate to passive using trapped equity so it is driving me crazy to be sitting on a huge amount of trapped equity. 

That being said I believe the smartest play is to stay put and hold, the mortgage is being paid down, the interest rate is much lower than current rates. SD demand is not going anywhere.  You and I both know there is not much building in the area so supply will remain low. 

Ultimately, my goal is to wait for rates to move down and lenders to allow HELCOs on investment properties with a fixed rate. Then take the HELCO funds and invest in a much higher cash flowing investment. Pay off HELCO, REPEAT.

If you are an accredited investor I can discuss some Alternative investments I am personally looking at to generate income that offer tax advantages to shelter some income. My contact is below, shoot me an email and we can talk further.  

@Jean Deeb 

I am a Registered Representative, which is financial industry talk for a Financial Professional holding different Series registrations. A Series registration are financial exams granting a Professional the ability to give recommendations and place investors in different financial products like DSTs, REITS, Mutual Funds, etc.

DSTs are SEC regulated Real Estate securities, meaning they are for accredited investors only. I have been in the DST space for 2 years, however my Firm has been specializing in DSTs since their inception, in the early 2000s.

Due to the regulations around these investment products, I am limited on how much information I can share on a public forum without knowing your financial background, investment goals and risk tolerance. My email is below...I would be happy to do a deep dive on DSTs and see if they would be the best financial product for your specific needs.

@Brynn Walden 

30+ in active real estate is quite the accomplishment and I’m sure it feels like familiar territory. Making the switch to passive investing can seem overwhelming at first.

DSTs, mentioned above are available to accredited investors only. Assuming you are one… The Founder of my company wrote a book on transitioning from active management to passive. You can find it on Amazon, or I could mail you a copy. The book is a guide on the exchange process, addressing pros and cons, as well as fees and potential earnings. Over the years we have narrowed down the vast number of Sponsors in the industry to a short list, all with amble track records. However just sharing a list of Sponsors would do you a disservice; the investments you make must match your investing objectives, risk tolerance and values. Below is my contact, reach out if you would like a copy of our book.

@Jean Deeb If you are new to DSTs you may find this blog post relatable. The author of the blog also has a book you can find on Amazon or I can send you a copy. My contact information is down below. 

https://www.biggerpockets.com/member-blogs/7993/48729-are-your-rental-properties-weighing-you-down

Kay Properties has been an advisory firm in the DST space for some time. It strongly touts no debt DSTs. Arguably, Kay overemphasizes the risk of taking on debt. Kay Properties has a DST Sponsor arm, Cove Capital that offers no debt DSTs. Kay has a strong inclination to be your Rep and your Sponsor (Cove). You may be shown fewer offerings from other DST sponsors -- particularly offerings with debt.

@Robert L. I am a Registered Rep and have worked with many clients that have used, Dave Foster and IPX1031. Both of which have been great and no complaints from clients or Sponsors. I would also like to recommend my go to QI; Weiming Peng with Excel1031. He goes above and beyond in terms of communication and education for his clients. He is in the Bay Area, but can process exchanges nationwide. 510-316-8078 ; [email protected]

I am sure there are some DST Sponsors charging 15-20%, in my experience the fees are closer to an average of 7.5%-10% in total; not a single Broker Dealer fee. This 7.5% - 10% is not taken from the investment a client makes, if you investment $100K your ownership in the DST is $100K, unless the DST has debt. DST's with debt will give an investor additional ownership.

In most spaces there are bad actors and or inexperienced sponsors. It is very important, no matter the investment vehicle, to do thorough due diligence, ask for track records, know the risks, make sure there is a great deal of transparency and excellent communication with any Sponsor.