DSTs and the All-Important Endgame
Experienced DST investors know how important it is to have a team behind you that knows how to perform due diligence. However, while everyone knows how important it is to select the right Delaware Statutory Trust, not everyone appreciates that the end of the trust is a significant factor in choosing it in the first place.
In my upcoming Kiplinger article, I will review the four possible outcomes of a DST investment. And while three of the four offer some variation of a “successful” investment, it’s important to note that not all success stories are created equal — and it’s crucial to do everything you can to avoid the fourth outcome at all costs.
Why should you pay close attention to the monthly investor reports that DSTs are required to issue? What signals do they contain that might prepare you for a good or a less-than-good outcome?
If the Trust is sinking minimal capital into the property to maximize short-term returns, is that a cause for celebration or concern?
What are the tax implications of a DST investment, good, bad, or otherwise? How can the timing of a DST termination and the distribution that ensues affect your reinvestment plans, as well as your tax picture?
Be sure to read my next article in Kiplinger, where you can find the answers to these and many other questions. DSTs have the potential to be an extraordinary investment, but it’s crucial to be working with the right people. If you can’t wait for the next article I’ve published by Kiplinger, please call my office today or book a strategy call! I’d love to answer all your questions.
