20/11/2025
Recently, I met with an investor who had just sold a long-held property.
He was excited about the idea of moving into a Delaware Statutory Trust (DST) โ no more tenants, repairs, or late-night calls. On the surface, it felt like the perfect solution.
But as we talked, I explained that while DSTs can be a great tool for 1031 exchanges, theyโre not without risk. Like any investment, understanding the whole picture matters.
We discussed the potential challenges:
โข Dependence on the sponsorโs management
โข Illiquidity โ the inability to sell quickly if life changes
โข Fees and limited control compared to direct ownership
โข Exposure to market volatility and regulatory shifts
By the end of our conversation, he said something that stuck with me:
โNo oneโs ever explained the risks โ just the benefits.โ
Thatโs why education is at the core of what we do. The goal isnโt just to invest โ itโs to invest with clarity.
๐ This information is for educational purposes only and does not constitute tax or investment advice. Investments involve risks, including illiquidity and potential loss of principal. Always consult your CPA or financial professional before investing.