Talk to an Advisor

Are Delaware Statutory Trusts (DST) Safe Investments?

Learning Center Menu

Delaware statutory trusts (DSTs) can be a safe investment option for certain types of investors. DSTs are a type of real estate investment trust (REIT) that is organized as a trust under the laws of the state of Delaware. They are typically used to pool capital from multiple investors to purchase and manage commercial real estate properties, such as apartment buildings, office buildings, and shopping centers.

One of the main benefits of investing in a DST is that it allows investors to take advantage of the economies of scale that come with owning a larger commercial property, which can provide a more stable and predictable income stream than investing in a single property. Additionally, DSTs are often structured in a way that allows investors to participate in the income and appreciation of the property without having to deal with day-to-day management responsibilities.

However, it's important to note that like any real estate investment, DSTs are subject to market risks and fluctuations. The value of the property can go up or down and rental income can be affected by changes in the economy or other factors. Therefore, it's important for investors to do proper due diligence on the DST and the properties it owns before investing, and understand the risks involved.

Additionally, DSTs are typically only available to accredited investors and are not registered with the Securities and Exchange Commission (SEC). This means that they are not subject to the same level of oversight and regulation as publicly traded securities, which can make it harder for investors to get information about the fund or the underlying properties.

Overall, DSTs can be a safe investment option for certain types of investors, but it's important to consult with a professional and understand the risks involved before investing.

Relatable Articles

The Pros & Cons of Investing in a DST vs. a REIT

As a real estate investor chasing greater returns, it can be hard to determine which type of investment is right for you. While Real Estate Investment Trusts (REITs) may offer diversified and relatively low-risk exposure to the real estate sector, DST investments provide access to larger, higher-yielding deals that could yield considerable returns – if […]

The Best Types Of Properties To Invest In Through A DST

Are you a real estate investor looking for the best properties to buy through a DST? If so, this post is for you! Investing in real estate through a Delaware Statutory Trust (DST) can be one of the most reliable and lucrative investments available—especially if you know where to look. Kicking off with an understanding […]

Investing in a DST: Benefits and Risks You Need to Know

Are you interested in exploring new types of real estate investments? The Delaware Statutory Trust (DST) may be the perfect option for you. DSTs offer an array of benefits, including diversification and passive income opportunities – plus some investors are even able to defer taxes through 1031 exchange options. But with any kind of investment […]

Have questions?

We'd love to guide you through the 1031 process, let us know how we can help!