How DSTs work as replacement property, what they cost, how sponsors are vetted, what happens at sale, and how they compare with the alternatives.
A Delaware Statutory Trust lets an exchanger buy a fractional interest in institutional property inside the 45-day and 180-day windows, with no management. That simplicity hides real decisions: which sponsor, what fees, how much debt, what happens at sale, and whether a zero cash flow or direct title structure fits better.
This library explains each piece plainly, with the revenue ruling, the typical offering terms and the trade-offs on the table.
To buy a DST you must meet Rule 501(a): $1 million net worth excluding your home, $200,000/$300,000 income, or a Series 7, 65 or 82; most sponsors verify it.
ReadYes. DSTs are Rule 506 private placements open to any accredited investor; cash buyers get a fresh cost basis and new depreciation, often from $25,000.
ReadMost DSTs take $50,000–$100,000 per exchanger and $25,000 from cash buyers; $150,000 fits one or two trusts, $500,000 three or four, and leftover cash is boot.
ReadMost DSTs are sold under Rule 506(b), which bans general solicitation, so no live offering sits on a public page; you see them through a broker-dealer.
ReadIn a DST your carried-over basis keeps the old schedule; 100% bonus depreciation applies only to new money in 5-, 7- and 15-year components, never the building.
ReadDST rent rarely qualifies for the 20% QBI deduction: the safe harbor excludes triple-net leases, and a trustee that only collects rent is a weak trade or business.
ReadA DST is a grantor trust, so every income-tax state where it owns property expects a nonresident return each year and at sale; eight states impose none.
ReadForm D filings put DST selling commissions at 5.00% to 9.25% of equity and sponsor payments at up to 16.86% more; here is what a $500,000 exchange really buys.
ReadTwenty-seven written questions on property, loan, sponsor, fees and exit, plus the FINRA 10-22 and 23-08 investigation your broker-dealer must have done.
ReadJudge a DST sponsor on its full-cycle list, the guarantor's balance sheet, Form D history, BrokerCheck and Rule 506(d) checks, plus twelve diligence questions.
ReadDST interests are restricted securities with no market; early exits mean a discounted private sale, a sponsor 721 option after year two, or waiting it out.
ReadA sponsor's bankruptcy cannot reach the trust's building; a master tenant's filing lets the trustee re-lease under Rev. Rul. 2004-86; the lender is paid first.
ReadOne NNN building gives you the whole cap rate, the whole vacancy and the loan; a DST pays a net yield after 7–15% loads with no loan to sign. The $2M math.
ReadA royalty held by deed can replace exchanged property like a DST can, but its income tracks oil prices and a depleting reservoir, and fund units do not qualify.
ReadFor 2026 the bill is 15-20% federal, 25% recapture, 3.8% NIIT and up to 13.3% state; a DST wins when that clearly exceeds its 10-18% load and you can wait.
ReadOnly a DST interest is real property under Reg. Section 1.1031(a)-3, so only a DST takes 1031 money in and out; REITs and LPs trade deferral for liquidity or upside.
ReadAbove $5 million you can own a large slice of one DST. Spread across sponsors and sectors, use the 200% rule, and decide early if a 721 roll-up is welcome.
ReadMost DSTs filed in 2026 accept $100,000 or less, so a sub-$250,000 exchange fits one or two trusts. Accreditation, paperwork and debt still decide it.
ReadTell us what you are selling and when it closes. An advisor will send a free proposal with replacement options that fit your deadlines and your state's rules.
DST marketplace · Preview
Three of twelve sample structures: asset class, leverage, minimum and hold. The sponsor, the distributions paid and the offering size are what marketplace access adds, after a short suitability call. Request access and the current list follows.
Suburban Pennsylvania · Northeast
A purpose-built community run by a national operator under a management agreement, not a lease.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Ohio · Midwest
A long-leased facility financed so that all rent pays down the loan; built for sellers who must replace a large mortgage.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Pacific Northwest · West
A newer mid-rise community in a supply-constrained coastal market, carrying more leverage for sellers with large loans to replace.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Sample offerings: hypothetical illustrations of structure types, not actual or current offerings. Photos are representative of each asset class. Current offerings are private placements for accredited investors, described by private placement memorandum.
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