What is a DST investment?

DST investments are commonly used for real estate investments, enabling investors to pool their funds together and invest in high-quality properties such as commercial buildings, apartments, or even medical facilities. Under the DST structure, investors purchase beneficial ownership interests in the trust, which in turn holds title to the property.

What is a DST investment in a 1031 exchange?

DST investments are commonly used in 1031 exchanges, which are transactions that allow investors to defer capital gains taxes on the sale of investment properties. By reinvesting the proceeds from the sale of a property into a qualified DST investment, investors can defer paying taxes and potentially increase their investment capital.

Who qualifies for a DST investment?

To qualify as an accredited investor, individuals must meet certain income or net worth requirements set by the Securities and Exchange Commission (SEC). Overall, a DST investment offers individual investors the opportunity to participate in commercial real estate ownership without the burden of active property management.

Should you invest in DSTs?

Here’s what you need to know if you are considering investing in DSTs. DSTs are unique real estate investment vehicles that allow a group of individual investors to purchase fractional interests in large commercial real estate assets that typically would be well beyond their financial reach as solo investors.