Are There Any Fees Associated With Investing In A DST?
Yes, there are typically fees associated with investing in a DST (Delaware Statutory Trust), as with any investment. The fees associated with a DST investment can vary depending on the specific DST and the investment sponsor.
Some common fees associated with a DST investment may include:
- Acquisition Fee: This fee is paid to the investment sponsor for the purchase of the property.
- Asset Management Fee: This fee is paid to the investment sponsor for managing and maintaining the property.
- Financing Fee: This fee is paid to the investment sponsor for obtaining and managing the financing for the property.
- Property Management Fee: This fee is paid to the property management company for managing the day-to-day operations of the property.
- Reserves: The investment sponsor may require that a portion of the investor's capital be held in reserve for future expenses related to the property.
It's important to carefully review the DST's private placement memorandum (PPM) and consult with a financial advisor or attorney to understand all the fees and expenses associated with the investment before making a decision.
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