DIVERSIFICATION DSTs offer the potential for various levels of diversification:
Tenants. With as little as $100,000, an exchanger may invest in a diversified rent roll that, in the case of multifamily, senior housing or self-storage portfolios, could include several hundred tenants. Asset classes . With a slightly larger exchange, an investor may allocate to multiple investment strategies across different asset classes, including apartments, senior housing, medical office, NNN retail, industrial, office, self-storage, and student housing.
Geographies . Many DST programs offer multistate portfolios, while most are single-property offerings. For example, with only $300,000, one could have fractional interests in an Arizona property, Colorado property, and a three-property portfolio in Texas, Georgia, and Florida. Sponsors/Operators. Approximately a dozen real estate operators comprise two-thirds of the market for securitized passive replacement solutions. Investors can potentially benefit from the collective experience, resources, and track records of multiple large, institutional firms in a single exchange portfolio.
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RICHARD D. GANN, JD Managing Partner 1031 Capital Solutions (800) 445-5908 1031CapitalSolutions.com
Richard (Rick) Gann is an attorney, licensed real-estate broker, and general securities principal specializing in 1031 exchange solutions and he is co-author of the book How to Retire from Being a Landlord.
Footnotes: 1 - https://www.census.gov/newsroom/press-releases/2017/rental-housing.html, referencing the 2015 Rental Housing Finance Survey 2 - Ibid. 3 - https://cp.foremost.com/market-facts/9012548-landlord-market-facts-2014.pdf 4 - Mountain Dell 5 - Notwithstanding stocks held in a qualified retirement account, of course 6 - Subject to certain transactional line items that may be considered taxable “boot”, such as reserves
Disclaimer : This is not a solicitation or an offer to sell any securities. Private placements are only available to accredited investors (typically have a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last three years) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney. Because investor situations and objectives vary, this information is not intended to indicate suitability for any particular investor. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC-registered investment adviser.1031 Capital Solutions is independent of CIS and CAM.
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