Cash Investments

DST invest­ments are not lim­it­ed to investors com­plet­ing Sec­tion 1031 exchanges. Eli­gi­ble investors may also pur­chase cer­tain DST inter­ests using direct cash, depend­ing on the offer­ing and the investor’s cir­cum­stances.

Cash investors may con­sid­er DSTs for pas­sive real estate own­er­ship, pro­fes­sion­al man­age­ment, poten­tial peri­od­ic income, diver­si­fi­ca­tion, or access to larg­er com­mer­cial prop­er­ties.

A cash pur­chase does not receive an ini­tial Sec­tion 1031 tax defer­ral sim­ply because the invest­ment is a DST.

As with any pri­vate real estate invest­ment, investors should review the under­ly­ing prop­er­ty, spon­sor, financ­ing, fees, pro­ject­ed income, liq­uid­i­ty, risks, and antic­i­pat­ed exit.

Key Point: Cash investors should eval­u­ate the DST on its invest­ment mer­its rather than on the tax treat­ment asso­ci­at­ed with a 1031 exchange.

Relat­ed DSTNews.org Arti­cles

• DST.EDU Series A — Part 10: Why Invest Cash in DSTs?

• Using DSTs to Cre­ate Pas­sive Income in Retire­ment

• Under­stand­ing Delaware Statu­to­ry Trusts: Risks and Ben­e­fits

Impor­tant Dis­clo­sure: This mate­r­i­al is for edu­ca­tion­al pur­pos­es only and is not tax, legal, account­ing, or invest­ment advice or an offer to sell or solic­i­ta­tion to pur­chase any secu­ri­ty. Pri­vate real estate, DSTs, Oppor­tu­ni­ty Zone invest­ments, pri­vate funds, and UPREIT struc­tures involve risk, includ­ing pos­si­ble loss of prin­ci­pal and lim­it­ed liq­uid­i­ty.

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This website is neither an offer to sell nor a solicitation of an offer to buy any security which can be made only by a prospectus, or offering memorandum, which has been filed or registered with the appropriate state and federal regulatory agencies, and offered only by broker dealers and registered investment advisors authorized to do so. The information found on this website is a summary of general information intended for training and education of accredited investors, only, who are conducting research on DST type investments and or a 1031 Exchange. Any offer of securities is qualified in its entirety by its own offering documents. A prospectus or offering memorandum must be preceded or accompanied by any offer of sale and read in conjunction with the offering documents in order to understand fully all the implications and risks of an offering to which it relates. Terminology such as "we", "us" and "our" is used as defined in the offering documents and does not imply DST News viewpoint. On a non-subscription fee basis, DST News provides informational resources and training to accredited investors regarding DST type investment products and offerings. DST News is not affiliated with any sponsor of such investments but may be associated with the offer or sale of such investments. This website’s information above does not constitute any offer to sell any securities or represent an express or implied opinion on or endorsement of any specific investment opportunity, offering, issuer or sponsor. Copyright DST News © 2026. All Rights Reserved.