Many investors are looking to Delaware Statutory Trusts (DSTs). DSTs can offer the potential for a passive income stream with no management responsibilities. Real estate management is a time-consuming and oftentimes, a troubling job. In many states, property owner rights are diminishing as we speak. Investors may be frequently troubled with tenants that do not pay rent. State laws currently prevent owners from having a legal right to collect past or current rental payments and with no legal recourse in this difficult situation. Free yourself from the terrible T’s of active property management – tenants, toilets, and trash.
DSTs can allow an investor to utilize a 1031 exchange into a professionally managed institutional quality asset. This type of investment could provide diversification and allow the investor access to a greater selection of different types of real estate. DSTs can offer access to triple net properties, self-storage facilities, distribution centers, multifamily, medical, and many other types of assets.
For example, instead of dealing with multiple tenants renewing their lease once a year, or tenants not paying rent, a DST investor may potentially have access to credit quality tenants with long term leases. This helps mitigate the problems of property management and provides diversification into other real estate asset classes.