DST Secondary Market

DST Secondary Market

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This material is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.

Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

The actual amount and timing of distributions paid by programs is not guaranteed and may vary. There is no guarantee that investors will receive distributions or a return of their capital. These programs can give no assurance that it will be able to pay or maintain distributions, or that distributions will increase over time.

No public market currently exists, and one may never exist, for the interests of any DST program. The purchase of interests in any DST program is speculative and is suitable only for persons who have no need for liquidity in their investment and who can afford to lose their entire investment.

Full Transcript

Like all real estate, Delaware Statutory Trusts are illiquid investments, meaning they cannot be quickly converted to cash. Unlike direct real estate however, DST investors do not control the timing of a potential property sale.

Although DST interests may be sold prior to sale of the underlying real estate, options for doing so are limited. Realized responded to demand by developing a secondary market, providing a platform for DST interests to be marketed and matched with qualified buyers.

After working with thousands of DST investors over the past 15 years, we understand that circumstances in life change unexpectedly and investors may wish to liquidate investments earlier than originally planned. The secondary market helps enable potential liquidity by providing investors and their heirs increased options over exit timing.

The secondary market also has advantages for buyers including:

  • Visibility of actual financial performance before investing
  • Potentially shorter investment periods, and
  • The ability to “ladder” anticipated holding periods in a portfolio, potentially reducing the reinvestment risk of rolling over investments at the same time.

Investment Property Wealth Management™ bridges the gap between investment property ownership and sophisticated wealth management. Increasing liquidity is an integral part of this strategy — enabling investors to manage their investment property wealth as they do with other investments.