All Forum Posts by: Jon Taylor

 @Zane Schryver, 

DSTs are primarily built for investors who are comfortable long-term illiquidity, tax-deferral, and lack of control.

Those three things probably eliminate 90% of the investors on this forum. Although, we'll probably all value those at some point in our journey - likely toward the end!

If those constraints are palatable, then you are left to select the best advisor you can find who understands the space. There are only 40ish DSTs available at any given time, so the ability to understand every offering is absolutely viable. So, start there. There are thousands of securities licensed brokers who can sell you DSTs, just like a stock. 

How to narrow down the list? 

1) Ask for a due diligence presentation to learn how to review an offering.

2) Ask for a very specific investment philosophy and acquisition criteria from the firm or broker.

3) Understand the business model of the DST. What is fixed, and what is variable (rent, debt service, fees, etc...)

4) Understand what will break the business model. Like all real estate ventures, the outcome is not guaranteed. It takes significant expertise and diligence to put together offerings on behalf of passive investors. 

Report back! Tell us what you found, and about your experience - for the benefit of all!

 What did you end up doing? We'd love to hear the end of the story!

Did you find the answers you were looking for? I have some insights to provide if this is still an open project.

1) When you say "marketplace," for the benefit of the readers of this forum I think it's helpful to understand that a DST is a Reg D private placement investment that can be purchased through any broker-dealer or RIA with a series 7 license and a selling agreement. So, *access* to offerings is not a competitive advantage or even a benefit. It's sort of like working with a financial planner who has access to the equities (stock) market. Access to offerings is not the value.

2) So, if access to offerings through a marketplace isn't the value, then what are you looking for? I'd argue, access to research - and the application of that research into investment philosophy and guidance. Your broker-dealer or RIA should have a comprehensive handle on the 40+ offerings that are currently available and be able to speak at length about the pros and cons of all of them. 

My advice: interview a DST broker in the same way you'd interview a financial planner, not the way you may select a real estate agent.

Good luck out there! 

Please share with the community what you are finding

My tax preparer is in LA County and is very familiar with DSTs.

DM me if you'd like the contact info.

 I'd be super curious to talk with you. Can you DM me?

@Ronald Verdugo, I'm sorry to hear that your PASCO investment didn't perform as expected. I actually reviewed the due diligence on this offering when it was released and chose not to invest.

@Daniel McNulty, I agree with you that reviewing the DST is more challenging for the typical retail investor than looking at a SFH. There are entire firms built simply to publish research every publically available DST on the market and track performance over time. Often times a DST that underperforms is exposed to unnecessary risk that is identifiable up front.

When is your targeted timeline for the sale? Days, months, or years?

@Glen Z. I'm glad my input was helpful! Thanks for the shout-out. 

 I will send you a direct message.

One cautionary reminder is that the sponsor (Inland, etc…) is the seller. Going to the sponsor directly is like asking the homeowner what’s wrong with their house. Good thing to do. But I wouldn’t skip the inspector!