Comprehensive Guide to DSTs - Delaware Statutory Trust

BOOK A STRATEGY CALL

"*" indicates required fields

Step 1 of 3 – Step 1 of 3 – What Brings You Here Today?

33%

Step 1 of 3 – What Brings You Here Today?

Select your service*

I’M ON A DEADLINE! – The 45-day clock is ticking. Get help identifying replacement options now.

DST Strategy – Complete your 1031 Exchange through a DST for passive ownership in institutional-grade real estate.

QOZ Opportunity – Defer or eliminate capital gains by reinvesting through a Qualified Opportunity Zone fund.

Energy Investment – Explore oil, gas, and mineral rights strategies designed for current income and significant tax advantages.

Marketplace Inquiry – Talk through a specific property you’re considering or get strategy guidance on a current offering.

Not Sure Yet – I’d like Daniel’s expert guidance on which path fits my situation.

Step 2 of 3 – Schedule Your Call

Untitled

Pick a Time*

Schedule

Step 3 of 3 – Your Information

First Name*

Last Name*

Phone*

Email*

Where are you in the 45-day window*

Untitled*

I am an Accredited Investor

**An accredited investor, in the context of a natural person, includes anyone who: a) earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR b) has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). Click here for information, or details on Accredited Entities.

Untitled*

I agree to all Provident 1031 Terms & Conditions

Directory:

CHAPTER 01 What Is A Delaware Statutory Trust?

CHAPTER 02 The History and Legal Foundations of the DST

CHAPTER 03 How DSTs Work Within a 1031 Exchange

CHAPTER 04 The IRS Rules Governing DSTs

CHAPTER 05 The Tax Benefits of DST Investing

CHAPTER 06 Beyond Taxes: The Other Benefits of DSTs

CHAPTER 07 Who Should Consider A DST?

CHAPTER 08 Understanding the Risks and Considerations of a DST

CHAPTER 09 Types of DST Properties and Asset Classes

CHAPTER 10 The Parties to a DST Investment

CHAPTER 11 A Step-by-Step Guide to Investing in a DST

CHAPTER 12 DST Exit Strategies: When The Trust Sells

CHAPTER 13 The 721 Exchange and the UPREIT

BOOK A STRATEGY CALL

"*" indicates required fields

Step 1 of 3 – Step 1 of 3 – What Brings You Here Today?

33%

Step 1 of 3 – What Brings You Here Today?

Select your service*

I’M ON A DEADLINE! – The 45-day clock is ticking. Get help identifying replacement options now.

DST Strategy – Complete your 1031 Exchange through a DST for passive ownership in institutional-grade real estate.

QOZ Opportunity – Defer or eliminate capital gains by reinvesting through a Qualified Opportunity Zone fund.

Energy Investment – Explore oil, gas, and mineral rights strategies designed for current income and significant tax advantages.

Marketplace Inquiry – Talk through a specific property you’re considering or get strategy guidance on a current offering.

Not Sure Yet – I’d like Daniel’s expert guidance on which path fits my situation.

Step 2 of 3 – Schedule Your Call

Untitled

Pick a Time*

Schedule

Step 3 of 3 – Your Information

First Name*

Last Name*

Phone*

Email*

Where are you in the 45-day window*

Untitled*

I am an Accredited Investor

Untitled*

I agree to all Provident 1031 Terms & Conditions

What is a Delaware Statutory trust?

Let’s start where every good guide should: with the basics. What is a Delaware Statutory Trust?

A Delaware Statutory Trust (or DST, as we’ll refer to it throughout this guide) is a legally recognized trust that holds title to income-producing real estate on behalf of its investors. When you invest in a DST, you aren’t buying a building outright, and you aren’t signing up to manage one. Instead, you’re purchasing a fractional beneficial interest in a trust that owns the property.

That trust, and the professional sponsor behind it, handles everything: acquiring the real estate, managing it, collecting the rent, and ultimately selling it. Your job, as the investor, is to review the opportunity carefully on the front end and then to sit back and receive your share of the income.

For many real estate investors, that last part sounds almost too good to be true. And for those who’ve spent years or decades as hands-on landlords, it can be a revelation.

Institutional Real Estate, Within Reach

One of the most compelling features of a DST is what it puts within your reach. On your own, you might be able to buy a rental house, a small apartment building, or a modest commercial property. But a professionally managed, institutional-grade asset — a 300-unit apartment community, a distribution center leased to a national tenant, a portfolio of medical office buildings — is ordinarily the domain of large investment firms and the very wealthy.

A DST changes that equation. By pooling capital from many investors, a DST allows individuals to own a slice of exactly these kinds of assets, often for a fraction of what direct ownership would require. It’s a way for individual investors to play in a field that has long been reserved for institutions.

There is an important gate, however: DST investments are available only to accredited investors — generally, those with either a net worth exceeding $1 million (excluding a primary residence) or sufficient annual income. We’ll cover the accredited-investor requirement in detail later in this guide.

Two Roles, One Structure

As you read on, you’ll notice that DSTs play two distinct roles, and it’s worth understanding both from the outset.

First, a DST can serve as replacement property in a 1031 exchange. Thanks to a landmark IRS ruling we’ll examine in the next chapter, a beneficial interest in a DST qualifies as “like-kind” real estate. That makes DSTs an invaluable tool for investors looking to defer capital gains taxes on the sale of an investment property — especially those racing against the strict deadlines imposed by a 1031 exchange. (If you’re new to 1031 exchanges, our 1031 Exchange Guide is the ideal companion to this one.)

Second, a DST can stand on its own as a direct investment for accredited investors who want passive, professionally managed exposure to real estate, whether or not a 1031 exchange is involved.

BOOK A STRATEGY CALL WITH DANIEL GOODWIN

CONTACT FORM

"*" indicates required fields

Step 1 of 3 – Step 1 of 3 – What Brings You Here Today?

33%

Step 1 of 3 – What Brings You Here Today?

Select your service*

I’M ON A DEADLINE! – The 45-day clock is ticking. Get help identifying replacement options now.

DST Strategy – Complete your 1031 Exchange through a DST for passive ownership in institutional-grade real estate.

QOZ Opportunity – Defer or eliminate capital gains by reinvesting through a Qualified Opportunity Zone fund.

Energy Investment – Explore oil, gas, and mineral rights strategies designed for current income and significant tax advantages.

Marketplace Inquiry – Talk through a specific property you’re considering or get strategy guidance on a current offering.

Not Sure Yet – I’d like Daniel’s expert guidance on which path fits my situation.

Step 2 of 3 – Schedule Your Call

Untitled

Pick a Time*

Schedule

Step 3 of 3 – Your Information

First Name*

Last Name*

Phone*

Email*

Where are you in the 45-day window*

Untitled*

I am an Accredited Investor

Untitled*

I agree to all Provident 1031 Terms & Conditions

Sound Simple? Not So Fast.

The elegance of the DST — passive ownership, institutional access, powerful tax advantages — can make the whole thing seem effortless. But as with any strategy, the IRS rewards this generously; the details matter enormously. DSTs come with their own rulebook, their own risks, and their own cast of professional players, and a misunderstanding on any front can undercut the very benefits that drew you in.

That’s precisely why I’ve written this guide. In the chapters ahead, I’ll walk through where DSTs came from and the law that governs them; how they work inside a 1031 exchange; the specific IRS rules every investor should understand; the tax and non-tax benefits that make them so attractive; the risks worth weighing honestly; and the step-by-step process of investing in one. My goal, as always, is to make the complex simple and help you decide whether a Delaware Statutory Trust belongs in your wealth-building strategy.

I explore many of these themes at greater length in my book on the subject, How to Build Tax-Free Wealth Using a Delaware Statutory Trust, but everything you need to get oriented is right here in this guide.

BOOK A STRATEGY CALL WITH DANIEL GOODWIN

CONTACT FORM

"*" indicates required fields

Step 1 of 3 – Step 1 of 3 – What Brings You Here Today?

33%

Step 1 of 3 – What Brings You Here Today?

Select your service*

I’M ON A DEADLINE! – The 45-day clock is ticking. Get help identifying replacement options now.

DST Strategy – Complete your 1031 Exchange through a DST for passive ownership in institutional-grade real estate.

QOZ Opportunity – Defer or eliminate capital gains by reinvesting through a Qualified Opportunity Zone fund.

Energy Investment – Explore oil, gas, and mineral rights strategies designed for current income and significant tax advantages.

Marketplace Inquiry – Talk through a specific property you’re considering or get strategy guidance on a current offering.

Not Sure Yet – I’d like Daniel’s expert guidance on which path fits my situation.

Step 2 of 3 – Schedule Your Call

Untitled

Pick a Time*

Schedule

Step 3 of 3 – Your Information

First Name*

Last Name*

Phone*

Email*

Where are you in the 45-day window*

Untitled*

I am an Accredited Investor

Untitled*

I agree to all Provident 1031 Terms & Conditions

Previous Opportunity

BOOK A STRATEGY CALL

Step 1 of 3 – What Brings You Here Today?

Step 2 of 3 – Schedule Your Call

Step 3 of 3 – Your Information

Directory:

Step 1 of 3 – What Brings You Here Today?

Step 2 of 3 – Schedule Your Call

Step 3 of 3 – Your Information

What is a Delaware Statutory trust?

Institutional Real Estate, Within Reach

Two Roles, One Structure

Step 1 of 3 – What Brings You Here Today?

Step 2 of 3 – Schedule Your Call

Step 3 of 3 – Your Information

Sound Simple? Not So Fast.

Step 1 of 3 – What Brings You Here Today?

Step 2 of 3 – Schedule Your Call

Step 3 of 3 – Your Information

Types of DST Properties and Asset Classes

Looking For A Qualified Intermediary

Schedule Consultation

Connect with a Qualified Intermediary

Schedule a Consultation

Subscribe to Provident 1031

Step 1 of 3 - What Brings You Here Today?

Step 2 of 3 - Schedule Your Call

Step 3 of 3 - Your Information