--- title: Key Factors to Examine When Reviewing a Delaware Statutory Trust (DST) Investment description: Investing in a Delaware Statutory Trust (DST) gives you the potential to invest in commercial real estate assets that otherwise might be out of reach. Here are some key factors when reviewing a Delaware Statutory Trust investment. image: https://www.realized1031.com/hubfs/Images/photo/abstract/due-diligence-optimized-is964196998.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # Key Factors to Examine When Reviewing a Delaware Statutory Trust (DST) Investment Posted Jul 27, 2023 ![due-diligence-optimized-is964196998](https://www.realized1031.com/hs-fs/hubfs/Images/photo/abstract/due-diligence-optimized-is964196998.jpg?width=800&height=341&name=due-diligence-optimized-is964196998.jpg) Investing in a Delaware Statutory Trust (DST) gives you the potential to invest in commercial real estate assets that otherwise might be out of reach. Through a DST, you acquire fractional shares in the trust. And the trust, in turn, acquires and manages real estate assets. Such an investment could mean regular cash flow and potential asset appreciation.  But the DST is an investment. This means you must perform careful due diligence on the trust and what it’s offering to determine if it meets your particular investment goals.  Here are some key factors when reviewing a Delaware Statutory Trust investment.  **Sponsors and track records**. The DST’s [sponsor is the entity responsible](https://www.realized1031.com/blog/what-is-sponsor-risk-in-real-estate) for bringing together real estate deals and investors. Because of the sponsor’s role, it’s important to research their background and previous experience to ensure their legitimacy and ability. Factors to consider as part of a sponsor evaluation should include:  - History and track-record length  - Asset management during various economic cycles  - Asset expertise  - Size and financial strength  **Private Placement Memorandum**. Any trustworthy sponsor must issue a Private Placement Memorandum, or PPM. The PPM [is a document offering disclosures and other information](https://www.realized1031.com/glossary/private-placement-memorandum-ppm) to help you make an educated decision about the DST investment. Sometimes known as the offering memorandum, the PPM includes information about the sponsor, terms of the offering, how proceeds will be used, and anticipated investment risks.  **Projected financials**. As part of your due diligence, be sure to ask the sponsor about their anticipated return on investments, cash flow and other financials. Then go one step further and examine the market reports in which the asset is located to determine if the sponsor’s projections are reasonable and realistic. Another helpful tool is appraisals of similar assets in the targeted geographic area. This can give you an idea of how fast local real estate properties might appreciate in value.   **Geographic/market risks**. In addition to examining other properties in your sponsor’s target market, also examine other potential geographic or market risk factors. These might include tenant demand, employment drivers, and population growth. These and other metrics can help you determine impacts on occupancy rates, rents, and appreciation.  **Additional fees and costs**. You might already know how much you want to invest in a DST. But it’s a good idea to understand the extra costs involved with that DST investment as well. These can include acquisition and disposition costs and asset management fees. An analysis of these costs can help you determine their impact on potential returns.  **Hold plans and exit strategies**. That DST is not going to own an asset or assets forever. Find out the hold period of that asset. Then ask about how the DST [will dispose of the asset](https://www.realized1031.com/glossary/exit-strategy) (like through a third-party sale or a [721 UPREIT exchange](https://www.realized1031.com/blog/721-upreit-exchange-the-6-things-you-need-to-know)). Understanding the timeline is important, as it will let you know how long your funds will be tied up in that investment. The timeline also tells you when you can anticipate any returns involved.  The takeaway here is that in-depth research is absolutely essential before you commit your funds to a Delaware Statutory Trust. Upfront information about a DST and its sponsor can help you determine if that targeted investment supports your financial and portfolio goals.    This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. No public market currently exists, and one may never exist. DST programs are speculative and suitable only for Accredited Investors who do not anticipate a need for liquidity or can afford to lose their entire investment. Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation. Download The Guide To DSTs [![The Investor's Guidebook To DSTs](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/DST-eBook-250.png?width=250&height=250&name=DST-eBook-250.png "See if Delaware Statutory ...") ](https://www.realized1031.com/blog/key-factors-to-examine-when-reviewing-a-delaware-statutory-trust-dst-investment#blogform) Download eBook ---   --- ### The Investor's Guidebook To DSTs ![Download The Guide To DSTs](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/DST-eBook-550.jpg?width=550&height=650&name=DST-eBook-550.jpg) See if Delaware Statutory Trusts are right for you. By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received. Search ### [Why Realized](https://www.realized1031.com/why-realized) - [Wealth Management](https://www.realized1031.com/the-wealth-management-gap) - [Why Realized](https://www.realized1031.com/why-realized) - [Our Process](https://www.realized1031.com/how-realized-works) - [Scenarios](https://www.realized1031.com/scenarios) - [Private Client Program](https://www.realized1031.com/private-client) - [Realized Exchange Services](https://www.realized1031.com/realized-exchange-services) ### [The Company](https://www.realized1031.com/about-us) - [The Team](https://www.realized1031.com/about-us) - [FAQ](https://www.realized1031.com/frequently-asked-questions) - [Testimonials](https://www.realized1031.com/testimonials) - [Press](https://www.realized1031.com/press) - [Careers](https://www.realized1031.com/careers) ### [Partners](https://www.realized1031.com/partners) - [Financial Advisors](https://www.realized1031.com/advisor) - [Broker Dealers](https://www.realized1031.com/partners/broker-dealers) - [Real Estate Agents](https://www.realized1031.com/partners/real-estate-agents) - [Certified Public Accountants](https://www.realized1031.com/partners/certified-public-accountants) ### [Resources](https://www.realized1031.com/resources) - #### Learn - [Articles](https://www.realized1031.com/blog) - [Glossary of Terms](https://www.realized1031.com/glossary) - [Capital Gains Tax Rates](https://www.realized1031.com/capital-gains-tax-rate) - #### Watch - [Video Library](https://www.realized1031.com/videos) - [Webinar Archive](https://www.realized1031.com/webinars) - #### Read - [Delaware Statutory Trust](https://www.realized1031.com/delaware-statutory-trust) - [Tenants-In-Common](https://www.realized1031.com/tenants-in-common-tic) - [1031 Exchange](https://www.realized1031.com/1031-exchange) - [Qualified Intermediary](https://www.realized1031.com/qualified-intermediary) - [Qualified Opportunity Zones](https://www.realized1031.com/opportunity-zones) #### Realized - 500 W 13th Street Austin, TX 78701 - (877) 797-1031 ##### [Contact Us](https://www.realized1031.com/contact-us) - [![Realized on Facebook](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-facebook-whiterev.png?width=60&height=60&name=social-facebook-whiterev.png)](https://www.facebook.com/Realized/) - [![Realized on LinkedIn](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-linkedin-whiterev.png?width=60&height=60&name=social-linkedin-whiterev.png)](https://www.linkedin.com/company/realized/) - [![Realized on YouTube](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-youtube-whiterev.png?width=60&height=60&name=social-youtube-whiterev.png)](https://www.youtube.com/c/Realized1031?sub_confirmation=1) - [![Realized Holdings, Inc. BBB Business Review](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/bbb/RZH2-bbb-seal.png?width=40&height=65&name=RZH2-bbb-seal.png)](http://www.bbb.org/central-texas/business-reviews/real-estate-investors/realized-holdings-llc-in-austin-tx-1000112948/#bbbonlineclick) - [![FEA Logo](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/fea/RZH2-fea-logo.png?width=82&height=65&name=RZH2-fea-logo.png "FEA Logo")](https://www.1031.org) SECURITIES DISCLOSURE Realized1031.com is a website operated by Realized Technologies, LLC, a wholly owned subsidiary of Realized Holdings, Inc. (“Realized Holdings”). Securities and/or Investment Advisory Services may be offered through Registered Representatives or Investment Advisor Representatives of Realized Financial, Inc. ("Realized"), a broker/dealer, member [FINRA](https://www.finra.org)/[SIPC](https://www.sipc.org/), and registered investment adviser. Realized is a subsidiary of Realized Holdings, Inc. ("Realized Holdings"). Check the background of this firm on [FINRA's BrokerCheck](https://brokercheck.finra.org/firm/summary/22333). Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment. Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested. This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every representative listed. For additional information, please contact the Realized Compliance department at 512-472-7171 or info@realized1031.com. - [Terms & Conditions](https://www.realized1031.com/terms-and-conditions) - [Privacy Policy](https://www.realized1031.com/privacy-policy) - [Form CRS](https://www.realized1031.com/hubfs/common-files/disclosures/FormCRS.pdf) - [ADV 2A](https://www.realized1031.com/hubfs/common-files/disclosures/ADV2A.pdf) - [Reg BI Disclosures](https://www.realized1031.com/hubfs/common-files/disclosures/RegBI.pdf) -   © 2026 Realized Holdings, Inc. ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "articleBody" : "Investing in a Delaware Statutory Trust (DST) gives you the potential to invest in commercial real estate assets that otherwise might be out of reach. Through a DST, you acquire fractional shares in the trust. And the trust, in turn, acquires and manages real estate assets. Such an investment could mean regular cash flow and potential asset appreciation. But the DST is an investment. This means you must perform careful due diligence on the trust and what it’s offering to determine if it meets your particular investment goals. Here are some key factors when reviewing a Delaware Statutory Trust investment. Sponsors and track records. The DST’s sponsor is the entity responsible for bringing together real estate deals and investors. Because of the sponsor’s role, it’s important to research their background and previous experience to ensure their legitimacy and ability. Factors to consider as part of a sponsor evaluation should include: History and track-record length Asset management during various economic cycles Asset expertise Size and financial strength Private Placement Memorandum. Any trustworthy sponsor must issue a Private Placement Memorandum, or PPM. The PPM is a document offering disclosures and other information to help you make an educated decision about the DST investment. Sometimes known as the offering memorandum, the PPM includes information about the sponsor, terms of the offering, how proceeds will be used, and anticipated investment risks. Projected financials. As part of your due diligence, be sure to ask the sponsor about their anticipated return on investments, cash flow and other financials. Then go one step further and examine the market reports in which the asset is located to determine if the sponsor’s projections are reasonable and realistic. Another helpful tool is appraisals of similar assets in the targeted geographic area. This can give you an idea of how fast local real estate properties might appreciate in value. Geographic/market risks. In addition to examining other properties in your sponsor’s target market, also examine other potential geographic or market risk factors. These might include tenant demand, employment drivers, and population growth. These and other metrics can help you determine impacts on occupancy rates, rents, and appreciation. Additional fees and costs. You might already know how much you want to invest in a DST. But it’s a good idea to understand the extra costs involved with that DST investment as well. These can include acquisition and disposition costs and asset management fees. An analysis of these costs can help you determine their impact on potential returns. Hold plans and exit strategies. That DST is not going to own an asset or assets forever. Find out the hold period of that asset. Then ask about how the DST will dispose of the asset (like through a third-party sale or a 721 UPREIT exchange). Understanding the timeline is important, as it will let you know how long your funds will be tied up in that investment. The timeline also tells you when you can anticipate any returns involved. The takeaway here is that in-depth research is absolutely essential before you commit your funds to a Delaware Statutory Trust. Upfront information about a DST and its sponsor can help you determine if that targeted investment supports your financial and portfolio goals.", "articleSection" : [ "Delaware Statutory Trusts (DST)" ], "author" : { "@type" : "Person", "email" : "marketing@realized1031.com", "image" : "", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2023-07-28T00:00:00+0000", "datePublished" : "2023-07-28T00:00:00+0000", "description" : "Investing in a Delaware Statutory Trust (DST) gives you the potential to invest in commercial real estate assets that otherwise might be out of reach. Here are some key factors when reviewing a Delaware Statutory Trust investment. ", "headline" : "Key Factors to Examine When Reviewing a Delaware Statutory Trust (DST) Investment", "image" : { "@type" : "ImageObject", "height" : 341, "url" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/Images/photo/abstract/due-diligence-optimized-is964196998.jpg", "width" : 800 }, "mainEntityOfPage" : "https://www.realized1031.com/blog/key-factors-to-examine-when-reviewing-a-delaware-statutory-trust-dst-investment", "name" : "Key Factors to Examine When Reviewing a Delaware Statutory Trust (DST) Investment", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" }, "thumbnailUrl" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/Images/photo/abstract/due-diligence-optimized-is964196998.jpg" } ```