What’s a DST? The Lowdown for Real Estate Investors

Delaware Statutory Trusts can potentially solve a lot of problems for real estate investors and those considering a 1031 exchange in this hot market. Here’s what you need to know if you are considering investing in DSTs.

A man smiles pensively as he looks at a model of a house that he is holding.
(Image credit: Getty Images)

DSTs are unique real estate investment vehicles that allow a group of individual investors to purchase fractional interests in large commercial real estate assets that typically would be well beyond their financial reach as solo investors. DST investors don’t actually own physical real estate, however – they own shares of a trust that was formed specifically to be the legal owner of the underlying properties held within the trust. This distinction is important because of the legal separation it creates between the trust and the pool of DST investors.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

David Wieland
Founder and CEO, Realized Holdings

David Wieland,  is CEO and co-founder of Realized Holdings, a company that helps people manage their investment property wealth. He has architected more than $3 billion of institutional real estate and capital markets transactions. David leads Realized Holdings’ vision to help investors maximize their after-tax returns and create custom investment portfolios tailored to each investor's risk tolerance, long-term objectives and income needs.