Realized1031 DST: Any experience with this company?

Question

I am a young investor looking for a less risky investment for a portion of my 1031 exchange. DST's are appealing although I see some obvious drawbacks. Currently in discussions with representatives from Realized1031.com, a start up that sets up DST portfolios for 1031 exchangers. They have been responsive and professional, but the company is compensated by DST sponsors and I am harboring a healthy level of skepticism right now.

Does anyone have experience with "Realized"? Or care to speak to their DST experience more broadly?

Thanks!

Does anyone have experience with "Realized"? Or care to speak to their DST experience more broadly?

Thanks!

Mike Jacobson · Answer

I have heard of realized 1031 DST exchange company. They are a broker that gets you into dst's. You must go through a broker to get into dst's. There are many Brokers you can choose who give you access to this investment strategy. The key is to get to a broker thoroughly vet the investment. Two that come up a lot on BiggerPockets are DaveFoster and Leslie Pappas.  I wrote extensively on what I invested in as far as dst's you might be able to find it if you search my name as I don't remember where it is in the BiggerPockets forum

Dan T. · Answer

5 years later Realized 1031 is still around. A pretty slick website but from my initial view on returns in Multifamily low 4% seems on the low end. Anyone have history with Realized 1031?

Dave Foster · Answer

Thanks for the shout out @Mike Jacobson, I'm actually not a broker for DSTs.  I'm  a QI for 1031 exchanges.  So I help investors in the process that lets them sell investment real estate and purchase replacement real estate without paying tax on the profit.

But many of my clients are choosing to go the DST and TIC route these days. They're anticipating a pull back in the market and are looking for safe cash flow opportunities that are 1031 compliant.  So that has become a topic of much discussion with my clients and here on BP.  It's not just enough to choose the right properties.  You have to choose the right broker.  And not all DST and TIC brokers are going to be created equal.  DSTs are a security so they can be sold by anyone with a securities license.  The key is to work with one who is incredibly strong on the real estate analysis side.  Since at their core these are real estate plays.  That would be my advice for you @Oscar Smith.  Look for a real estate professional who happens to sell DSTs not a securities broker that happens to sell DSTs or TICs.

John P. · Answer

I am not a DST expert but I have never heard of Realized1031. It sounds like they are just brokering deals possibly and taking the sales commission!?  I would look at the underlying sponsors as there are some very large and reputable companies in this space.  I am not sure I would call DSTs "less risky." I would call them "different risky."  They have high fees but professional management.  You lose control but you aren't being called in the middle of the night to fix a toilet. So pros and cons.

Realized1031 DST: Any experience with this company?

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