Delaware Statutory Trust (DST) and Triple Net Lease (NNN) are both investment structures that allow individuals to invest in real estate without the responsibility of managing the property. However, there are some key differences between the two:
Delaware Statutory Trust (DST):
- A DST is a type of trust established under Delaware law that holds title to a property and allows multiple investors to own a fractional interest in the property.
- The trust is managed by a trustee, who is responsible for making decisions regarding the property and managing day-to-day operations.
- DST investments offer investors the ability to invest in institutional-quality properties with a lower minimum investment amount.
- DSTs are typically passive investments, meaning that investors have limited control over the property and decision-making.
Triple Net Lease (NNN):
- A NNN lease is a type of lease agreement where the tenant is responsible for paying all property-related expenses, including taxes, insurance, and maintenance.
- NNN leases can be structured as individual properties or portfolios, and investors can purchase the properties or the leases.
- NNN investments typically offer investors a more hands-on approach to real estate investing, as they have direct control over the property and decision-making.
- NNN investments may also offer higher returns compared to DST investments, as investors are able to collect rent and passive income from the property.
In summary, the main differences between DSTs and NNN investments are the level of control and involvement the investor has in the property, the minimum investment required, and the responsibilities involved in ownership. Both types of investments can offer the benefits of real estate investment returns, but it is important to consider the specific differences and choose the investment structure that best aligns with your investment goals and risk tolerance.