Hi BP forum,
Hope that everyone is doing well. I am trying to evaluating the DST option as part of a 1031. Does anyone have recommendations on Good DST Broker that I could connect to and discuss further?
@Victor Fu A good spot to start is your financial advisor if you have one. (These must be sold by a financial advisor).
Sometimes CPA's have references as well. Check around though as the commissions and/or fees vary significantly across different advisors. Sometimes they can be as high as 6%. I do them for 2-3% for ongoing clients, and 3-4% for one time transactional clients.
@Scott Jensen Thank you.
@Victor Fu I work with Morgan Stanley, we have a few DST programs that allow 1031 exchange into passive, tax deferred REITs. We offer competitive cost to clients bc of our scale and partner due diligence. Message me if you'd like to learn more. Thanks
Hi @Victor Fu ,
Yes, I can refer you to some. PM me your email address and what area you live in. You need to make sure that you work with an individual that is licensed as a securities registered representative. The DST is a hybrid investment vehicle that is sold as a security through a registered representative, but is treated as a purchase of real estate for tax purposes and qualifies for 1031 Exchange treatment.
You should be careful with the tax-deferred REITs reference above. The upREIT referred to generally includes provisions where the sponsor can sell the property that you exchange into and trigger your taxable gain whether you like it or not. Some upREITs have guarantees that the sponsor will not sell and trigger your gain for a certain period of time. The upREITs have their place and have some great benefits, but you have to be aware of the risks involved as well.
Thanks @Bill Exeter