Seller financing or DST/1031

[Zane Schryver]

Hello everyone,

I have a mini storage facility that recently appraised for 7-7.5 million and owe about 2.5 million on the loan. I am looking to turn it completely passive. I have been messing with the idea of seller financing or 1031 exchanging it into a syndication or something similar. I am wondering what your opinions are! I am open to anything. Does not have to be those two options! Please let me know!

Thanks,

Zane

[Dave Meyer]

I just invested into my first DST this year, after selling a rental property. This was back in March and I was having a hard time finding rental properties that penciled, so I looked at a DST. I've had a great experience with it so far. I found the underwriting to be sound, and the sponsors professional -- but I used a broker who did thorough screening of sponsors on my behalf. The yields are pretty low though -- back in March they were about 3-4% CoCR for multifamily value-add investments, but could go up to 6-7% on industrial or NNN deals. It's sort of like a bond with some risk, and some decent upside.