How to Evaluate the Real Estate Behind a DST
Separate property quality from paperwork before you review any offering terms.
Location and Tenant Quality
Review the property location, surrounding market, and tenant strength. A single-tenant property depends heavily on that tenant staying in business. A multi-tenant property spreads that risk across several leases. Ask how long each lease runs and what happens if a tenant leaves early.
Physical Condition and Lease Structure
Ask for recent inspection reports, deferred maintenance lists, and the roof and system ages. Review whether leases are triple net, meaning tenants cover taxes, insurance, and maintenance, or whether the owner carries these costs. This changes your real exposure to future repair bills.
Separate the Property From the Offering Terms
A good property can sit inside a poorly structured offering, and a weak property can sit inside clean paperwork. Review the real estate and the offering terms as two separate questions. Your CPA and attorney can help you weigh both before you commit funds.
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.
Q1How do I judge the quality of a DST property?+
Look at location, tenant strength, lease length, and physical condition. Ask for inspection reports and maintenance history. A property in a strong market with a stable tenant carries different risk than one with a single tenant near lease expiration.
Q2Does a good property mean the offering is safe?+
No. Property quality and offering terms are separate questions. A strong property can still sit inside an offering with high fees or restrictive exit terms. Review both the real estate and the paperwork before you decide.
Q3Can you show me current DST property listings?+
No. We do not maintain or share live DST inventory. We help you evaluate real estate quality in general and coordinate the real estate side of your exchange. Your securities professional provides specific offering details.
Get Help Reading the Real Estate
Book a Real Estate Review. We will walk through how to evaluate property quality so you arrive at your CPA and securities professional conversations prepared.
Get Help Reading the Real Estate
Book a Real Estate Review. We will walk through how to evaluate property quality so you arrive at your CPA and securities professional conversations prepared.
Book a Real Estate ReviewNext steps
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