A Delaware Statutory Trust (DST) is a separate legal entity created as a trust under Delaware Statutory Law. A DST allows you to co-invest with other investors in one or numerous properties. Although DSTs aren’t new, current tax laws have made them popular among 1031 exchange investors. Purchasing into a DST is treated as a direct interest in real estate, you are assigned fractional ownership of equity and debt, fulfilling your exchange requirements. Minimum investments are typically between $25,000 and $100,000; therefore, a single investor may own a fractional interest in a single property or entire portfolio and receive distributions from the operation of the trust, from rental income and the eventual sale of the assets.
Here are 8 reasons why we keep talking about DSTs.
1. No management responsibilities for you.
If you’ve owned rental real estate in the past, you know that property management is time-consuming and stressful. Some investors find that it can be a major relief to hand over the management and the decision-making responsibilities to a professional team of experienced managers.