DST’s: Advantages & Disadvantages

Potential Advantages of DST 1031 Properties:

  • Defer 100% Of Capital Gains Taxes
  • Ability to Diversify 1031 Exchange Equity *
  • Management Free – No More Tenants, Toilets and Trash!
  • Multiple Asset Classes – Multifamily Apartments, Triple Net Leased Properties (NNN), All-Cash/Debt-Free Properties, Medical Properties, Pharmacies, Fast Food, Dialysis Centers, Etc.
  • Mitigate 1031 Exchange Closing Risk – Typically Close In As little As 1-3 Business Days.

* Please note that diversification does not guarantee profits nor guarantee against losses.

Potential Disadvantages of Real Estate NNN, DST, TIC Properties and 1031 Exchanges:

  • No Guarantees For Distributions
  • No Guarantees For Appreciation
  • General Real Estate Risks
  • Real Estate and DST Properties are Illiquid Investments
  • Risk Of Lender Foreclosure
  • Risk Of A Loss Of Principal
  • Reliance On a Sponsor/Trustee To Make Management Decisions
  • Refinancing Risk
  • Economic Risk To The General Economy Of The United States
  • Economic Risk To The Local Economy A Property Is Located

For more information on DSTs please contact us

Author: Paul McIntyre

Chief Compliance Officer

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