DST Educational Series A- Part 9: Why Consider a DST?

Welcome DST News! Our goal is to provide non-biased education and market information for Accredited Investors on DSTs. We hope to provide a Depth & Breath of knowledge for Investors About Delaware Statutory Trusts (DSTs)

By Al DiNicola, AIF® Feb 18, 2022

There are reasons to consider an investment in a Delaware Statutory Trust. Occasionally an investor will focus on only one or two reasons.  Once an investor has experienced an investment in a DST there is a high reinvestment rate and based on investor feedback there are many reasons.

  • Potential to own institutional quality real estate. There are limited options for investors to have the opportunity to invest in high quality real estate because of the cost. Many investors cannot move into the $20 Million plus real estate assets but with a DST there is the ability to invest.
  • Ability to diversify by property type and location. Investor can move from one type to a variety of assets or properties.
  • Turnkey solution: Sponsor is responsible for sourcing, due diligence, structuring and financing of debt, property acquisition and program management.
  • Fast and efficient closing process to meet timing requirements. This enables investors the ability to have their investment funds returning potential income sooner.
  • Certainty of closing on acquisition of replacement property. Once an investor has executed their subscription agreement there is an increased ability to close on the replacement DST properties.
  • Elimination of property management responsibilities. This is a passive income property with full property management.
  • Potential for monthly income. Distributions are typically sent automatically to the investors’ designated account.
  • Long-term, non-recourse financing in place. An often-overlooked requirement of the 1031 exchange requirement is the replacement is the debt replacement. DST are prepackaged and if leveraged has non-recourse financing. Cash investors who invest in DST (with debt component) enjoy the potential benefit of leverage with the non-recourse debt advantages.

Look for Part 10: Why Invest Cash into DSTs?

DST’s (Delaware Statutory Trusts) are for accredited investors only.  Contact your investment adviser for additional details on how a DST may be a solution to your 1031 Exchange and compliment your financial objectives. For more information on how to properly set up an IRC 1031Tax Deferred Exchange or if you are an accredited investor and would like additional information on a DST contact Al DiNicola at 239-691-8098 or email adinicola@namcoa.com.

This is not an offer to purchase or solicitation to purchase any security, as such be made only through an offering memorandum or prospectus.  Investing in securities, real estate, or any investment, in any form, involves risk, including but not limited to the potential of losing some or all of your investment dollars when you invest in securities. You should review any planned financial transactions that may have tax or legal implications with your personal tax or legal advisor.   NAMCOA, LLC is a Registered Investment Advisor, regulated by SEC (Securities and Exchange Commission). Our corporate office is located at 999 Vanderbilt Beach Road, Suite 200, Naples Florida 34108. Securities Offered through MSC-BD, LLC, Member of FINRA/SIPC. 410 Peachtree Parkway Suite 4245, Cumming, GA 30041. MSC-BD, LLC and NAMCOA are independently owned and are not affiliated. 

About the author

Al DiNicola, AIF, CEPA, specializes in 1031 Exchanges utilizing DST as a viable alternative for accredited investors. He also is well versed in Opportunity Zones and Alternative Real Estate Investments. Mr. DiNicola has more than 40 years of experience in commercial & residential sales and development. Al has extensive experience in real estate land acquisitions, development, investment and real estate securities.

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