Tried it have the t shirt and scars…stay away…better off paying the tax or whirring a property manager
What’s the disadvantage of DST? I got mails and it seems a good idea to park your money when you run out of time for 1031.
I’m thinking to form a DST someday and sell to you guys [quote=“sfdragonboy, post:1, topic:3745, full:true”]
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The problem is you have to put the money in a TIC with a group of people…Hard to exit later…
I think most of the DST partners have no voting power and are just powerless passive partners. The TIC agreement can make it fully controlled by the top executives and deprive the partners of any decision making rights. Google and Facebook have done that to prevent against some stupid shareholders from hurting the company.
Seems you can convert from DST into a REIT.
Been there done that…Too many layers between you and your money… Just hire a property manager
Yeah sometimes I think it’s better to just pay the taxmen.
What??? No way, I will do the owner move-in strategy than give back all that blood and sweat to the gov’t… Thank God for the retention of the 2 out of 5 years!!!
Well think about it this way. If I paid the taxmen and have access to my money now how much can I make with that pile? Versus moving in and staying for 5 years, and have money frozen making nothing over that time?
Avoiding loss is sometimes not the same as making more. I always opt for the latter.
Agreed, present value cash in hand is a good way to go but since we want a new home anyway why not incorporate it all into one nice exchange? I need to be close to BART down the road for work too so there are other considerations other than just loss/profit.
Direct control is the best. If not possible, need good transparency.
REIT might have better transparency over DST partnership.
But DST might be easy to sell. One DST guy called me and mailed me some stuff. Afterwards he called again and I told him I’m not interested anymore. And he was upset and thanked me for wasting his time. I was not really interested and I think I did not even ask him any questions, he was just talking and trying to sell. From his frustration, we can tell that he was expecting a very easy sale and did not expect a no.
If you are selling a $300K-$500K home and married, why worry about it?
But, when you have a property where your equity is more than what you can deduct, then uncle Sam is your family in need. 
I am helping this individual to sell 20+ of his properties. He has sold some already, more to go, and he is parking his money into a Capital Gains 30 years deferral strategy because he doesn’t have the desire for another bunch of small or higher value properties to buy. From there, he will defer the capital gains for 30 years and buy himself a mall or something bigger. His capital gains will be working for him right? And, if you are a good investor, smart investor that is, you would know how to double or triple your capital gains. Right? If you are not, get out of here!
Now, some people hate me for talking about life insurance, but this is not it.
I have information about a 500 company giving you 12% if you have more than $1M to invest. They buy high profile buildings, and they pay you returns every month when they lease the building or offices. And they “shield” your income, meaning Capital gains go away, and returns are tax free. Bad thing is that next year they will change the time you park your money there form 2 to 1 year to finish off the infidels, I mean, the negative people worried about that length of time.
You want to put your money into fractional investments? Owning the buildings where Rite or Walgreens are the tenants? They signed leases for 15-19 years in advance, so no matter the economy, the lease is secured and so your investment. Returns go from 4%, to as much as 12% depending on your investments.
You want to know about life insurance?
Tax deferral plans?
Capital gains deferral?
Disappear from this society?
I may not be able to answer your question, but my mentors, 35+ years in the business can. I refer people there, and that’s it, my register goes cha-chin!
Ooh…read the fine print on DST, will ya?
All properties shown are Regulation D Rule 506c offerings available to accredited investors only (generally defined as having a net worth of greater than 1 million dollars and/or an entity owned entirely of accredited individuals or having gross assets of over 5 million dollars – please speak with your CPA and attorney to determine if you and your investing entity are considered accredited prior to considering an investment). All real estate and DST properties contain risk. Please read the full private placement memorandum for a discussion of each properties business plan and risk factors. There are no guarantees for projected cash flow and/or appreciation. Please do not invest in real estate or DST properties if you cannot afford to lose your entire investment principal.
Hi there - would you mind telling me more about your experience with the DST and why it was so negative? It was recently pitched to me as I’m exiting a money-losing investment property and not sure I have the heart to reinvest the principal so choices seem to be pay tax or DST.
Thank you so much in advance.
p.s. I was not able to private message you as I just joined the site but if you prefer that route, hopefully I can respond to your email
The DST fees are high. High fees to transfer and maintain. Fees are 1-3% of the whole amount, not just the taxable amount. Can be higher than the tax. Then, there is the trust factor. Do you trust your trust?
I haven’t used DST but have exchanged into 1031s that were TIC partnerships that failed