Where Can I Find 1031 Exchange DST Properties List?

by Lisa taylor Tax consultant

Thousands of 1031 investors often look for 1031 Exchange DST Properties list to compare different DST properties for their investment. However, only a few of them manage to find one as such lists are not publicly disclosed. By the end of this blog, you'll come to know where you can find DST properties list for your 1031 exchange. But before that, let's explore some advantages and disadvantages of investing in DSTs.

What is Delaware Statutory Trust (DST)?

A Delaware Statutory Trust or DST is a private governing trust responsible for buying, managing, administering, and selling income-producing real estate properties. Shares of a Delaware Statutory Trust or a DST are offered mainly as real estate securities to 1031 Exchange investors. DST investments are passive real estate investments that allow investors to acquire fractional ownership in real estate properties without the burden of managing those properties.

Investors within a DST enjoy their pro-rata share of income, appreciations, and tax benefits. DST investments offer similar benefits and risks as any other real estate investment. The structure for a DST investment was first created in Delaware in 1947. However, a DST doesn't need to be located within the State of Delaware.

Benefits that investors receive with DST investment -

· One of the biggest benefits of investing in DSTs is the relief from property management. As DST properties often come with pre-arranged property or asset managers, DST investors don't need to bear the burden day-to-day management responsibilities.

· For investing in DSTs you don't need to be backed by millions in your bank account. Because of its large structure, a DST investment may start from as low as $500k.

· As a DST investor, you can split your proceeds and invest in different properties or assets. Doing so will diversify your investment portfolio.

· When you invest in a DST, you don't need to wander around for locating properties. The real estate firm or sponsor is generally responsible for locating properties for investors.

· 1031 investors can use DST investment for closing their exchange. Since DST investment is considered as a real estate investment (as you own share in the property and not in the trust), you can acquire DST shares as your 1031 exchange replacement property.

Limitations of a DST investment -

· DST investors don't have voting rights. Any decision within a DST is taken by the trustee or sponsor and investors enjoy passive investment benefits.

· DST investors don't receive property title. As a DST consists of many investors, it's impossible to transfer the property title to one or all investors.

· DST investors aren't allowed to form single-member LLC.

Where to find 1031 Exchange DST Properties list?

Either your Qualified Intermediary or a real estate broker can help you find DST properties list for your 1031 exchange. As such property lists are not publicly disclosed, it gets difficult for 1031 investors to get hold of one. However, with the assistance of a DST expert, you'll easily find 1031 exchange DST properties without wandering around.