All Forum Posts by: Dylan Speer

A DST is a Delaware Statutory Trust which is a 1031-exchangeable syndication. You'd mentioned that prices in your market are high so you may be interested in selling that property and exchanging into a DST. Usually, the cash distributions, paid monthly, from DSTs are more than what most investors get from rentals. DSTs are available for all property types. Here's an example - Cantor Fitzgerald has a Student Housing DST at UCLA. It's a $100,000,000, class-A multifamily building that they purchase and open equity to investors. The minimum investment may be $100k, and they pay investors 6% annualized cash on cash with a 10-15% appreciation on initial investment when they sell the property in 5-10 years. What makes a DST different from any other syndication is that it's 1031-exchangeable. So, if you sell your home for $400k lets say, and have $200k of debt on it, you'd pay off that debt and if you exchange into something else, you'll need to maintain the same debt to equity ratio of 0.5. So, you'd find a DST that offers 50% LTV and exchange into that. The cool part is, the sponsor (Cantor Fitzgerald) signs on the debt so even though investors benefit from the debt on the property for the purpose of the exchange, the debt is in the sponsor's name and not the investors, and the investor does not take more debt on their personal balance sheet.

I work at a firm that specializes in helping investors exchange into DSTs and am happy to chat. 

Hey Andrew,

Everyone's situation is unique but with most investors I work with, exchanging into a DST usually provides them with a higher cash on cash return than they were getting before with similar appreciation levels on invested capital. I am an analyst at a firm that specializes in helping active investors exchange into DSTs. Feel free to reach out.

Hey Mark,

I work at a real estate investment advisory firm that specializes in helping clients invest in syndications. I would avoid syndicators that do not have very long track records managing billions of dollars of real estate. Feel free to reach out as we only work with legacy syndicators. 

Hey Robert,

Difficulty with scaling is normal and a common phenomenon that most of our clients have. The question is - Is the 10th rental really worth it considering all the time that must be committed to managing these...?

(I am an analyst at a real estate investment advisory firm)

Most of our clients are investors who feel that they've scaled their portfolios to a point where they will struggle to exceed. Their next goal is to change their actively managed portfolios into more passive ones. We specialize in helping clients invest in DSTs (Delaware Statutory Trusts). These are syndications that are 1031-exchangeable. Because most DSTs raising capital now were acquired when rates were back around 4% and below, many of our clients are finding higher cash on cash returns from these offerings with similar levels of appreciation on invested capital when the fund sells the asset(s) in the fund. 

I'm happy to get you some info on DSTs if you'd like it. Feel free to reach out 

Have you considered doing a 1031 exchange into a DST?

I suggest investing in DSTs. DSTs are 1031-exchangeable syndications that allow investors to invest in whatever property type they chose without actively managing anything. These pay monthly cash flow and offer growth on the exit. The reason I like DSTs right now is because many of these funds have acquired properties in the last couple of years at 2-4% interest rates and are still raising capital. Therefore, they are allowing investors to time travel back and benefit from cheap debt. 

I actually work at a firm that specializes in helping clients exchange into DSTs. Am happy to chat. 

Hey Hedman,

Sounds like a bit of a headache. I recommend doing a 1031 exchange into a DST. A DST is a Delaware Statutory Trust, which is a 1031 exchangeable syndication that will allow you to keep the same exposure to your property type of interest without actively managing the property. DSTs allow investors to replace both their equity and debt and become limited partners in a real estate fund. There are DSTs for all property types. An example of a multifamily DST would be a large, class-A student housing complex at UCLA. These pay anywhere from 3-7% annualized cash distributions, often paid monthly, and offer growth on your invested capital upon closure of the fund, usually 5-10 years hold period.

Hey Gina,

Have you considered doing a 1031 exchange into a DST? A Delaware Statutory Trust is a 1031-exchangeable real estate syndication fund that allows investors to replace both their equity and debt from their relinquished property into a fund. Investors in DSTs are then partial owners of a larger real estate asset that is managed by the sponsor of the fund. An example if this may be a student housing complex at UCLA, for example. These provide investors with an exchangeable option for passive cash flow and growth and while they allow you to replace your debt, they do NOT affect your DTI.

Hey Allen,

I work at a real estate investment firm that specializes in helping clients invest in DSTs. Feel free to reach out if you have any questions. 

Hey Wyatt,

I am an analyst at a real estate investment firm that specializes in helping clients invest in syndications, both 1031 exchangeable syndications and non-exchangeable. 

I'm happy to answer any questions you may have. Feel free to reach out.