How to Evaluate a DST Offering Before You Commit
Use a clear checklist to separate real estate quality from offering terms.
Start With the Property
Look at the real estate first. Review location, tenant quality, lease length, and physical condition. A strong offering starts with strong real estate. If the property details are thin or vague, treat that as a warning sign before you look at the financial terms.
Read the Sponsor Materials and Debt Terms
Request the full sponsor package, including the private placement memorandum. Check the debt structure: loan amount, interest rate type, maturity date, and recourse terms. High leverage or a loan maturing soon can raise risk. Ask your CPA and attorney to review these documents before you commit funds.
Check Fees, Distributions, and Exit Limits
Ask for a written breakdown of all fees and how distributions are calculated. Ask whether distributions come from operations or from reserves. Review concentration, meaning how much of the offering sits in one property or tenant. Ask about exit limits and how long your money may be locked in.
Sources
Educational only, not tax advice. Your CPA must confirm tax treatment, timing, participation, basis, and filing before you act.
Common questions
Clear answers first. If one question changes the deal, bring it into the review before you move money.
Q1What should I check first in a DST offering?+
Start with the real estate itself: location, tenants, lease terms, and condition. Then review the sponsor materials, debt structure, fees, and distribution sources in writing. A strong property does not guarantee strong offering terms, so review both separately.
Q2How do I check the debt on a DST property?+
Ask for the loan amount, interest rate type, maturity date, and whether the loan is recourse. High leverage or a loan maturing soon adds risk. Your CPA or attorney can help you read these terms before you commit funds.
Q3Can you help me pick a DST offering?+
We do not recommend or rank DST offerings. We help with the real estate side of your exchange, including timing and property comparisons. Your CPA, attorney, and securities professional review specific offerings and confirm whether they fit your goals.
Review Your Property Options First
Book a Real Estate Review before you evaluate any offering. We will walk through your property, timeline, and questions to bring to your CPA and securities professional.
Review Your Property Options First
Book a Real Estate Review before you evaluate any offering. We will walk through your property, timeline, and questions to bring to your CPA and securities professional.
Book a Real Estate ReviewNext steps
Keep moving forward
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