1031 Delaware Statutory Trust (DST)
Realized® Secondary Market

The DST Secondary Marketplace that Realized provides may offer current owners of certain 1031 exchange-qualified Delaware Statutory Trust private securities (“DST Interests”) the option to market these DST Investments for sale to investors via our online Realized Marketplace. The Realized Marketplace offers a virtual place where buyers and sellers meet to conduct commerce.

NO. There is absolutely no assurance that a current owner of DST Interests will be able to sell their investments via the Secondary Marketplace. The Secondary Market may provide a mechanism for you to market your DST Interests for sale to Accredited Investors on the Realized Marketplace who are considering purchasing these types of investments. You must always consider DST Interests extremely illiquid, there can be absolutely no assurances that potential buyers will want to purchase your DST Interests. Your decision on whether to invest in DST Interests should be based on the assumption that you will NOT be able to sell these investments.

No. Realized reserves total discretion to determine the DST Interests listed on the Secondary Market. Generally, investors who originally purchased their DST Interests through Realized will be given preference.

Our experience has shown us that sometimes circumstances change unexpectedly for current owners of DST Intesterests, which cause them to want or need to sell their investments. Historically, current owners of DST Interests have not had a way to find potential buyers of these investments.

Conversely, Realized believes some individuals will consider purchasing DST Interest via the Secondary because the investments may offer shorter holding periods, demonstrate track records, and attractive risk-adjusted returns.

To purchase unregistered securities, like DST Interests, each buyer must be an Accredited Investor. An Accredited Investor, also referred to as a sophisticated investor, is an investor with special status under financial regulations. Please speak to your Realized investment advisor to learn more.

You as the owner. To assist you in determining the current value of your DST Interests, Realized may furnish you with its “Opinion of Value.” An Opinion of Value is an educational resource that you may want to consider when determining whether or not to list your DST Interests for sale, and if so, the price you may ask, based on recent transactions, the investment structure, historical performance, current transaction pricing and market trends.

Members of the Realized team have been involved in creation, analysis, sales and tracking the performance of DST Interests since 2004. Through these efforts, the Company has built an ever-expanding database of current and past DST Interest Offerings, which it may draw upon to arrive at an Opinion of Value.

As with any investment in real estate, the value of DST Interests will fluctuate over time based on specific economic conditions, location and property performance. An Opinion of Value provides absolutely no assurance of the actual price of your DST Interest, which is ultimately determined between buyer and seller.

The owner of the DST Interests has total discretion over whether or not to accept an offer from a prospective buyer.

Yes. Owners of DST interests generally have the ability to sell their investments. However, because your DST interests are private securities sold pursuant to exemptions from registration provisions of federal and state securities laws, the resale of DST Interests are subject to certain restrictions on transfer. Sale of your DST interests must comply with all federal and state securities laws, are subject to the approval of the Sponsor and, in some cases, subject to approval of the lender. For these reasons, it is important to consult an investment advisor familiar with the governing DST Offering Documents, as well as federal and state securities laws.

Yes. If your DST interests were acquired as part of a 1031 exchange, or if you plan to conduct another 1031 exchange upon the sale of your current DST interests, your period of ownership may be scrutinized by the IRS. Generally, the holding period “safe harbor” for property involved in a 1031 exchange is at least two years. Prior to deciding to sell your DST Interests, you should seek your tax professional’s input, interpretation and guidance. Realized does not provide tax advice.

Generally, yes. The opportunity to complete another 1031 exchange is triggered by either, the sale of the underlying property a DST owns, or the sale of an investor’s DST Interests. Prior to deciding to sell your DST Interests, you should seek your tax professional’s input, interpretation and guidance. Realized does not provide tax advice.

There is no legal requirement that you use a broker to sell your DST. Many buyers, however, find that using a broker and a private market platform like Realized provides several advantages. These include a large amount of sell-side inventory, experience with private company transfer processes, knowledge of applicable securities laws and transaction documents, and the expertise to bring these elements together in a successful transaction.

A Qualified Intermediary is not needed to sell your DST interest. However, if you plan on doing a subsequent exchange upon the sale of your DST interest, then yes, a Qualified Intermediary is required and the same rules and procedures apply as with any 1031 exchange. Please speak to your Realized investment advisor about the rules for purchasing another 1031 investment.

The DST Secondary Market is relatively new - so it can be hard to know how long it may take to sell your DST interests, or if they will actually sell. Like selling a house or a personal item on eBay, one of the primary determinants of how quickly something sells is how aggressively you set the price.

Generally, DST Sponsors are supportive of investors finding liquidity for their DST Interests. They do, however, have a number of valid concerns regarding such sales. These include sensitivity to disclosure of financial information, the impact secondary sales may have on their current DST offerings, compliance with loan covenants, and compliance with securities laws. Each Sponsor has different policies and processes in place to address these concerns. Speak to a Realized investment advisor who can provide guidance on the process for your DST Sponsor.

All funds transfer are handled through a third-party escrow account.

Generally, yes. DST Interests are divisible and may be sold in smaller increments. Note however, that there are minimum requirements of offering amounts on the DST Secondary Market. Please see the question below for more detail.

The minimum amount of DST Interests to list on the DST Secondary Market is typically $100,000 or greater of original investment amount. The actual minimum of any listing is at the sole discretion of Realized and may be based on a variety of factors including underlying property type, operating performance, availability and completeness of offering-related documents and information, general DST supply and demand conditions, and weather or not the potential seller purchased the original offering through Realized. Please speak to your Realized investment advisor regarding your specific situation.

The costs associated with selling your DST Interest are a function several factor including whether you are an existing customer and the amount of DST interest sold, as well as other.  For more information, call Realized.

Generally, the transaction costs are split between the seller and the buyer. The costs associated with selling your DST Interest vary depending on the size of the investment you are attempting to sell.