Longing For 1031 DST Property List? This Is What You Should Do…

No prize for guessing why you’re eyeing a DST investment. The opportunity to invest in a diverse and less complicated market is enough to lure any investor. That’s why the number of investors doing a 1031 exchange into DSTs has increased over the years. One of the major benefits of investing in DSTs is freedom from property management. As DST properties often come with pre-arranged property or asset managers, DST investors don’t need to bear the burden of property management. However, one must have a 1031 dst property list to be able to evaluate different grade properties. Before we get into that, let’s explore some of the other possibilities of a DST investment.

How many investors can invest in a single DST?

A Delaware Statutory Trust or DST is a private governing trust responsible for buying, managing, administering, and selling income-producing properties. DSTs lets investors co-own income-producing properties without the liability to go out and find those properties. Unlike TICs, where the number of investors is limited to 35, a single DST may have a hundred investors or more. This is why small investors get to own large institutional-grade properties, which otherwise they may not be able to afford individually.

How 1031 investors invest in DSTs?

As you may know, a 1031 exchange allows investors to defer capital gains tax on exchanging an investment property for another like-kind property. A 1031 investor can exchange any investment property for the other without recognizing any gain or loss in the exchange. Since DST properties are also used for business or investment purposes, they qualify for a 1031 exchange. Investors can invest their 1031 proceeds into a DST and close their exchange.

How to evaluate a DST?

This should be your main concern, instead of a 1031 dst property list. When you’ll step out in the market, your biggest challenge would be to choose one DST investment option from many. As all DSTs promise to offer almost the same benefits, it gets difficult to compare them. Here are a few tips you may find handy while evaluating a DST –

• Experience – How old is your DST? This should be your first query. A DST with more years of existence than others is likely to have low risks and good control over the market.
• Number of investors – Though having a large number of investors is the strength of a DST, it may not be profitable every time. Because of its big structure, a DST investor gets to own large institutional-grade properties at a much cheaper price. However, their profit may get divided among others along with the increase in the number of investors.  
• Properties Grades – What kind of properties a DST possesses should also be checked. DSTs with large institutional-grade properties are likely to generate more revenue than the ones with single-unit buildings.

To compare DST properties of different grades, an investor requires a 1031 dst property list. However, it isn’t publicly disclosed. You may find such lists with a real estate firm or a broker. Apart from this, you can also reach out to a DST expert for this.