Investing in TICs and DSTs Requires Strict Due Diligence

Every investor wants to be certain that they are putting their money into solid investments, especially when it comes to complex real estate transactions. Due diligence – the analysis of the circumstances surrounding an investment – and full disclosure of all material facts is an essential component of the investment process. Especially when it comes to investing in two very popular #1031 exchange real estate options – Tenancies in Common (TIC) and Delaware Statutory Trusts (DST).

Failing to consider all aspects of the offering is the first step towards entering into a very unfavorable transaction. The best way to avoid troubles down the road (and potential litigation) is to cover all your bases.

Structural Review – Enlist the assistance of an experienced attorney to closely review all documentation related to the transaction.

Property Inspection – Never assume the property has been pre-vetted. Ensure that you are confident in the physical condition, that all environmental matters are cleared and that the property is performing comparably with similar properties in the area.

Sponsor Analysis – Be sure to scrutinize the experience, financial condition, performance record and backgrounds of the key players involved in the sponsorship.

To find out how we can help you find and close on your next 1031 exchange property or to learn more about the exchange process and our qualified intermediary services, please visit our website.