Question 1

What is the minimum investment?

Accepted Answer

Typically $100,000 per DST.

Question 2

Are DSTs liquid?

Accepted Answer

No. They are illiquid investments with defined hold periods.

Question 3

Can I diversify across multiple DSTs?

Accepted Answer

Yes—this is one of the primary advantages.

Question 4

What happens at the end of the investment?

Accepted Answer

The property is sold, and investors can:
Take proceeds
Complete another 1031 exchange
Transition into other structures (e.g., 721 exchange)

Question 5

What is a Delaware Statutory Trust (DST)?

Accepted Answer

A DST is a legal structure that allows multiple investors to own fractional interests in institutional real estate while qualifying as like-kind property for a 1031 exchange.

Question 6

Who is a DST best suited for?

Accepted Answer

DSTs are typically ideal for investors who:
Want to complete a 1031 exchange
Are tired of active property management
Want passive income and diversification
Are comfortable with longer-term, illiquid investments

Question 7

What is the minimum investment?

Accepted Answer

Most DSTs have minimums of $100,000–$250,000 per property, depending on the offering.

Question 8

What are the typical returns?

Accepted Answer

DSTs are generally designed for:
Monthly income
Potential appreciation upon sale

Returns vary significantly based on:
Asset type
Market conditions
Leverage

Question 9

Are DSTs liquid?

Accepted Answer

No. DSTs are illiquid investments with typical hold periods of 5–7+ years.
There is generally no active secondary market.

Question 10

What are the risks?

Accepted Answer

Key risks include:

Market risk (property value fluctuations)
Interest rate risk
Tenant/occupancy risk
Sponsor execution risk
Illiquidity

Investors should review all offering documents carefully.

Question 11

Do I have any control over the property?

Accepted Answer

No. DST investors are passive owners and do not make operational decisions.

Question 12

How does financing work in a DST?

Accepted Answer

Many DSTs include pre-structured, non-recourse financing, meaning:
Debt is allocated to investors
No personal liability

Question 13

Can I invest in multiple DSTs?

Accepted Answer

Yes—and many investors do.
 Diversifying across multiple DSTs can reduce concentration risk.

Question 14

What happens when the property is sold?

Accepted Answer

At exit, investors typically:
Receive their share of proceeds
Can complete another 1031 exchange
Or take cash and pay taxes

Question 15

Can I 1031 exchange out of a DST?

Accepted Answer

Yes. DSTs are commonly used in a “swap ‘til you drop” strategy.

Question 16

What is a 721 exchange (UPREIT)?

Accepted Answer

Some DSTs offer the potential to convert into a REIT structure after a hold period, which may provide:

Liquidity options
Ongoing income

This is not guaranteed and depends on the sponsor.

Question 17

Are DSTs only for accredited investors?

Accepted Answer

Yes. DST investments are typically offered as private placements and are limited to accredited investors.

Question 18

How quickly can I invest in a DST?

Accepted Answer

DSTs can often be executed relatively quickly, making them useful for:
45-day identification deadlines
Backup replacement options

Frequently asked questions

What is the minimum investment?

Are DSTs liquid?

Can I diversify across multiple DSTs?

What happens at the end of the investment?

What is a Delaware Statutory Trust (DST)?

Who is a DST best suited for?

What is the minimum investment?

What are the typical returns?

Are DSTs liquid?

What are the risks?

Do I have any control over the property?

How does financing work in a DST?

Can I invest in multiple DSTs?

What happens when the property is sold?

Can I 1031 exchange out of a DST?

What is a 721 exchange (UPREIT)?

Are DSTs only for accredited investors?

How quickly can I invest in a DST?