Fees & Cost of Acquisition

DST invest­ments may include costs asso­ci­at­ed with acqui­si­tion, financ­ing, oper­a­tion, and even­tu­al dis­po­si­tion. The exact struc­ture varies by offer­ing.

Investors should look beyond the head­line dis­tri­b­u­tion rate and under­stand how investor cap­i­tal is allo­cat­ed among the under­ly­ing real estate, reserves, financ­ing costs, offer­ing expens­es, com­mis­sions, and spon­sor com­pen­sa­tion. The PPM Sources and Uses sec­tion is often a use­ful start­ing point.

  • Sell­ing com­mis­sions and deal­er-man­ag­er fees
  • Orga­ni­za­tion­al and offer­ing expens­es
  • Acqui­si­tion and financ­ing costs
  • Asset- and prop­er­ty-man­age­ment fees
  • Dis­po­si­tion fees
  • Oth­er spon­sor or affil­i­ate com­pen­sa­tion

Key Point: Ask not only how much you are invest­ing, but what your cap­i­tal is actu­al­ly pur­chas­ing.

Relat­ed DSTNews.org Arti­cles

• DST Edu­ca­tion­al Series A — Part 5: DST Fees

• The Com­plete White Paper — How to Review a PPM

Edu­ca­tion­al use only. This mate­r­i­al is not tax, legal, account­ing, or invest­ment advice. Pri­vate real estate invest­ments involve risk, includ­ing pos­si­ble loss of prin­ci­pal and illiq­uid­i­ty.