DST.EDU Series A- Part 9: Why Consider a DST?

There are rea­sons to con­sid­er an invest­ment in a Delaware Statu­to­ry Trust. Occa­sion­al­ly an investor will focus on only one or two rea­sons. 

Updat­ed Post: Feb­ru­ary 13, 2024
Orig­i­nal Post Feb 13, 2022

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®, CEPA™
DST 1031 Spe­cial­ist
NAMCOA® — Naples Asset Man­age­ment Com­pa­ny®, LLC
Secu­ri­ties offered through MSC-BD, LLC Mem­ber of FINRA/SIPC

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. 8215 SW Tualatin ‑Sher­wood Rd, Suite 200 Tualatin, OR 97062. MSC-BD, LLC and NAMCOA are inde­pen­dent­ly owned and are not affil­i­at­ed.