One of the first practical questions a 1031 investor asks about Delaware Statutory Trusts is simple: how much do I need to invest? The answer is not a single number. DST investment minimums vary by sponsor and by offering, and they differ depending on whether you're investing 1031 exchange proceeds or new cash. As a general rule of thumb, 1031 minimums are often around $100,000, sometimes ranging from roughly $25,000 to $100,000, while cash (non-1031) minimums are sometimes lower — around $25,000. Those low minimums are powerful, because they let you split a single exchange across multiple DSTs to diversify across property types, sponsors, and markets. But minimums change from offering to offering and over time, so the figures here are general guidance, not promises. This guide explains typical 1031 versus cash minimums, how minimums vary by sponsor and offering, how to plan a multiple-DST allocation, how low minimums enable diversification, and why you must confirm current offering minimums. DST interests are securities offered to accredited investors after a suitability review; Baker 1031 does not provide tax or legal advice — verify the current rules with your advisors.
Typical 1031 vs. Cash Minimums
DST investment minimums generally fall into two categories, depending on the source of your capital: a 1031 exchange minimum and a cash (non-1031) minimum. When you're investing 1031 exchange proceeds — money rolling from the sale of investment real estate into a DST as replacement property — the minimum is often higher, frequently around $100,000, though it can range from roughly $25,000 to $100,000 depending on the offering. The larger 1031 minimum reflects the reality that exchangers typically bring substantial proceeds and that sponsors structure 1031 allocations in meaningful increments.
When you're investing new cash rather than exchange proceeds, the minimum is sometimes lower — often around $25,000. A cash investment in a DST isn't part of a 1031 exchange and doesn't carry exchange-related requirements, so sponsors can accept smaller commitments. This distinction matters because the same DST offering may publish two different minimums: a higher one for 1031 investors and a lower one for cash investors. Knowing which applies to you is the starting point for planning, and it depends entirely on whether your capital is exchange proceeds or new money you're investing directly.
So DST minimums split along the 1031-versus-cash line: 1031 minimums are often around $100,000 (sometimes $25,000 to $100,000), while cash minimums are sometimes lower, around $25,000. So this distinction frames how much you need. Typical 1031 versus cash minimums — 1031 exchange minimums often running near $100,000 (and ranging from roughly $25,000 to $100,000), versus cash (non-1031) minimums sometimes being lower at around $25,000 because they carry no exchange-related requirements — are the two figures every investor should know. The source of your capital determines which applies. Understanding this distinction frames how much you need to invest. DST minimums depend on your capital source: 1031 exchange minimums are often around $100,000 (sometimes $25,000 to $100,000), while cash minimums are sometimes lower, around $25,000.
How Minimums Vary by Sponsor
There is no industry-wide standard for DST minimums — they vary by sponsor and by individual offering. Each DST sponsor sets its own minimum investment for each offering based on the property, the deal structure, the target investor base, and how it wants to allocate the available equity. So one sponsor's flagship multifamily DST might carry a $100,000 1031 minimum, while another sponsor's net-lease offering accepts $50,000, and a third sets a $25,000 cash minimum on a different deal. There simply isn't a single number that applies across the market.
Several factors drive this variation. Larger, institutional-quality offerings sometimes set higher minimums, while smaller or more retail-oriented offerings may set lower ones. Sponsors also adjust minimums based on how much equity they're raising and how many investors they want in a given trust — a DST has a finite amount of beneficial interests to sell, so the minimum helps determine how the investor pool is sized. Because these decisions are made offering by offering, the only reliable way to know a minimum is to look at the specific offering's current terms, not a general expectation.
So DST minimums vary by sponsor and offering — there's no universal figure, and each deal sets its own threshold based on property, structure, and investor base. So you can't assume a single number. How minimums vary by sponsor — each sponsor setting its own minimum for each offering based on the property, deal structure, target investors, and equity-raise size, so that figures range widely across the market with no industry-wide standard — means you can't assume a single threshold applies. The minimum is offering-specific. Understanding this variation shows why you must check each deal. DST minimums vary by sponsor and offering, with no universal standard — each sponsor sets its own threshold per deal, so you must check the specific offering rather than assume a market-wide number.
There is no single DST minimum — each sponsor sets its own threshold for each offering, so the only number that matters is the one on the deal in front of you, confirmed as current.
Planning Multiple-DST Allocations
Because DST minimums are relatively low, a 1031 investor with substantial exchange proceeds can spread a single exchange across several different DSTs rather than placing everything in one. If your exchange proceeds are, say, $500,000 and minimums run around $100,000, you could in principle allocate across five DSTs — or fewer, larger positions, or a different mix — to build a diversified replacement portfolio from one sale. This is one of the most useful features of DSTs for exchangers: the low minimum makes fractional, diversified allocation practical.
Planning a multiple-DST allocation involves more than dividing your proceeds by the minimum. You'll want to consider how many positions make sense for your total, how to spread across property types (multifamily, net-lease retail, industrial, medical office) and sponsors, and how to handle any debt-replacement requirement, since a 1031 exchange generally requires you to replace the debt as well as the equity from your sold property. DSTs can carry non-recourse debt at the trust level that helps satisfy this, but the allocation math has to account for both equity and debt across all the DSTs you choose.
So low minimums let you plan a multiple-DST allocation — splitting one exchange across several trusts to build a diversified replacement portfolio, accounting for equity and debt across positions. So planning the allocation is a key step. Planning multiple-DST allocations — using relatively low minimums to spread a single exchange's proceeds across several DSTs (by property type, sponsor, and market), while accounting for how many positions fit your total and how the 1031 debt-replacement requirement is met across them — turns one property sale into a diversified replacement portfolio. The low minimum makes this practical. Understanding allocation planning shows how to use DSTs well. Low DST minimums let you split one exchange across multiple trusts to build a diversified replacement portfolio, planning across property types, sponsors, and the 1031 debt-replacement requirement.
Minimums and Diversification
The connection between low minimums and diversification is one of the strongest arguments for using DSTs in a 1031 exchange. With direct real estate, an exchanger often has to roll all of their proceeds into a single replacement property — a large, concentrated bet on one building in one market. Low DST minimums break that constraint: instead of one property, you can hold fractional interests in several, spreading risk across multiple assets, sponsors, geographies, and property sectors from a single exchange.
Diversification matters because it reduces the impact of any single asset underperforming. If one DST's property faces a tenant loss, a soft local market, or a slow lease-up, the effect on your overall position is cushioned by the other DSTs you hold. Diversifying across sponsors also reduces reliance on any one manager's execution, and diversifying across property types means you're not concentrated in a single sector's cycle. None of this eliminates risk — DSTs are illiquid, fee-bearing securities and distributions are never guaranteed — but spreading a low-minimum allocation across several offerings is a sensible way to manage concentration.
So low minimums enable diversification — letting you spread one exchange across multiple assets, sponsors, markets, and sectors to cushion the impact of any single underperformer. So diversification is a core benefit of low minimums. Minimums and diversification — low DST thresholds letting an exchanger replace a single concentrated property with fractional interests in several, spreading risk across assets, sponsors, geographies, and sectors so that one underperformer has a cushioned effect — connect directly: the lower the minimum, the more positions you can hold. Diversification doesn't remove risk but manages concentration. Understanding this shows why low minimums matter. Low DST minimums enable diversification by letting you spread one exchange across multiple assets, sponsors, and sectors — cushioning the impact of any single underperformer, though never eliminating risk.
- DST 1031 minimums are often around $100,000 (sometimes $25,000 to $100,000); cash minimums are sometimes lower, around $25,000.
- Minimums vary by sponsor and offering — there's no industry-wide standard, so you must check each specific deal's current terms.
- Low minimums let you split one exchange across multiple DSTs, building a diversified replacement portfolio while meeting the 1031 debt-replacement requirement.
- Diversifying across assets, sponsors, markets, and sectors cushions concentration risk, though it never eliminates the underlying risks of illiquid DST securities.
Confirming Current Offering Minimums
Because minimums vary by offering and change over time, the figures in any general guide — including this one — are only rough guidance, not the actual terms of any specific DST. A DST that opened at a $100,000 1031 minimum last quarter may have closed, reopened with different terms, or been replaced by a new offering with a different threshold. The only authoritative source for a minimum is the current offering's documents, confirmed at the time you're ready to invest.
When you're evaluating a specific DST, confirm the current minimum for your situation: the 1031 minimum if you're exchanging, or the cash minimum if you're investing new money. Check it against the offering's private placement memorandum and current subscription terms, and confirm availability, because DSTs have a finite amount of equity and can close once fully subscribed. Working through a broker-dealer, you'll receive the current offering terms as part of the suitability and subscription process, so you're investing based on real, present figures rather than general expectations or stale numbers from an article or a prior deal.
So always confirm current offering minimums — general figures are guidance only, and the authoritative number is the one in the live offering's documents at the time you invest. So confirming the current minimum is essential. Confirming current offering minimums — treating any general figure as guidance only, verifying the actual 1031 or cash minimum against the live offering's documents and subscription terms, and confirming availability since DSTs can close once fully subscribed — ensures you're investing on real, present numbers. Minimums change offering to offering and over time. Understanding this protects you from stale figures. Always confirm the current minimum in the live offering's documents — general figures are guidance only, minimums change over time, and DSTs can close once fully subscribed, so verify the present terms before you invest.
Treat every published minimum as provisional: confirm the live offering's current terms before you invest, because DSTs change, reprice, and close once their finite equity is fully subscribed.
Minimums, Fees, and Suitability
The minimum is only one part of what it costs to invest in a DST — fees and suitability are equally important. Beyond the amount you commit, DSTs carry fees: upfront costs (selling commissions, organizational and offering expenses) and ongoing fees (asset-management and property-management fees) that reduce the net return you receive. Two offerings with the same minimum can have very different fee structures, so the minimum alone doesn't tell you the full economics. Reviewing the fee structure alongside the minimum is essential to understanding what you're really paying.
Suitability is the other piece. Meeting an offering's dollar minimum isn't enough on its own — you also have to qualify as an accredited investor and pass a suitability review conducted through the broker-dealer. The suitability review considers your financial situation, goals, liquidity needs, and risk tolerance to confirm that an illiquid, longer-term DST is appropriate for you. So the minimum, the fees, and the suitability requirements together determine whether and how you can invest. A low minimum doesn't make a DST suitable; suitability is a separate determination that depends on your overall situation, not just your ability to meet a dollar threshold.
So minimums, fees, and suitability all matter — the minimum is your equity commitment, fees reduce your net return, and a suitability review (plus accreditation) determines whether you can invest. So all three belong in the analysis. Minimums, fees, and suitability — the investment minimum being only your equity commitment, the fees (upfront and ongoing) reducing your net return so that two offerings with the same minimum can differ economically, and the suitability review plus accreditation determining whether you can invest at all — together frame the true cost and accessibility of a DST. The minimum alone tells only part of the story. Understanding all three gives the full picture. Minimums, fees, and suitability all matter: the minimum is your equity commitment, fees reduce your net return, and a suitability review plus accreditation determine whether you can invest — so weigh all three, not just the minimum.
How Baker 1031 Helps You Navigate DST Minimums
Baker 1031 Investments helps investors understand DST investment minimums — the difference between 1031 and cash minimums, how minimums vary by sponsor and offering, how to plan a multiple-DST allocation, how low minimums enable diversification, and how to confirm the current minimum on any live offering — so you can size your exchange and build a diversified replacement portfolio that fits your goals.
DST interests are securities offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), to accredited investors after a suitability review that considers your financial situation, goals, liquidity needs, and risk tolerance. We help you confirm the current minimum for your situation on any specific offering, plan how to allocate your exchange proceeds across multiple DSTs for diversification, and account for the 1031 debt-replacement requirement across positions. Baker 1031 does not provide tax or legal advice — your CPA and attorney handle your specific 1031 exchange and tax situation, which can be technical. We're candid that minimums vary and change, that DSTs are illiquid and fee-bearing, and that distributions and returns are never guaranteed — projections are projections, and past performance does not guarantee future results. Our role is to help you understand minimums clearly and invest only when suitable for your goals and risk tolerance.
Frequently Asked Questions
What is the typical minimum investment for a DST?
DST minimums vary by sponsor and offering, so there's no single number, but some general patterns hold. For a 1031 exchange — when you're investing proceeds from the sale of investment real estate — the minimum is often around $100,000, though it can range from roughly $25,000 to $100,000 depending on the offering. For a cash (non-1031) investment, the minimum is sometimes lower, often around $25,000, because a cash investment carries no exchange-related requirements. The exact figure depends on the specific DST: each sponsor sets its own minimum for each offering based on the property, structure, and target investor base. So treat these figures as general guidance, not promises — the authoritative number is always the one in the live offering's current documents. Confirm the minimum for your situation (1031 or cash) on the specific offering before investing, since minimums change over time and from deal to deal.
Why is the 1031 minimum higher than the cash minimum?
The 1031 minimum is often higher than the cash minimum because of the nature of the capital and the requirements involved. When you invest 1031 exchange proceeds, you're rolling money from the sale of investment real estate into a DST as replacement property, and exchangers typically bring substantial proceeds — so sponsors structure 1031 allocations in larger increments, frequently around $100,000. A cash investment, by contrast, is new money invested directly, with no exchange-related requirements, so sponsors can accept smaller commitments, sometimes around $25,000. The same DST offering may publish both: a higher 1031 minimum and a lower cash minimum. The distinction reflects how the capital is being used, not a difference in the underlying real estate. So whether the higher 1031 figure or the lower cash figure applies to you depends entirely on whether you're investing exchange proceeds or new money. Confirm which applies to your situation on the specific offering before investing.
Do all DSTs have the same minimum investment?
No — DSTs do not all have the same minimum investment. There's no industry-wide standard; each sponsor sets its own minimum for each offering based on the property, the deal structure, the target investor base, and how it wants to size the investor pool. So one sponsor's multifamily DST might carry a $100,000 1031 minimum, another's net-lease offering might accept $50,000, and a third might set a $25,000 cash minimum on a different deal. Larger, institutional-quality offerings sometimes set higher minimums, while smaller or more retail-oriented offerings may set lower ones. Because a DST has a finite amount of beneficial interests to sell, the minimum also helps determine how the investor pool is sized. The only reliable way to know a minimum is to look at the specific offering's current terms. So don't assume a single number applies across the market — check each deal individually, since minimums vary widely and change over time.
Can I split my 1031 exchange across multiple DSTs?
Yes — one of the most useful features of DSTs is that relatively low minimums let you split a single 1031 exchange across several different DSTs rather than placing everything in one. If your exchange proceeds are large and minimums run around $100,000, you could allocate across multiple DSTs to build a diversified replacement portfolio from one property sale. This lets you spread across property types (multifamily, net-lease retail, industrial, medical office), sponsors, and markets, rather than making one concentrated bet. Planning the allocation involves more than dividing proceeds by the minimum — you'll want to consider how many positions fit your total and how to satisfy the 1031 debt-replacement requirement across all the DSTs, since an exchange generally requires replacing debt as well as equity. DSTs can carry non-recourse debt at the trust level that helps. So yes, low minimums make multiple-DST diversification practical, but plan the allocation carefully with your advisors.
How do low DST minimums help with diversification?
Low DST minimums help with diversification by letting you replace a single concentrated property with fractional interests in several. With direct real estate, an exchanger often has to roll all proceeds into one replacement property — a large bet on one building in one market. Low DST minimums break that constraint: instead of one property, you can hold positions in several DSTs, spreading risk across multiple assets, sponsors, geographies, and property sectors from a single exchange. Diversification reduces the impact of any single asset underperforming — if one DST's property faces a tenant loss or a soft local market, the effect on your overall position is cushioned by the others. Diversifying across sponsors reduces reliance on any one manager, and across property types reduces concentration in a single sector's cycle. None of this eliminates risk — DSTs are illiquid, fee-bearing securities and distributions aren't guaranteed — but spreading a low-minimum allocation across offerings sensibly manages concentration.
What is the lowest amount I can invest in a DST?
The lowest amount depends on the specific offering and on whether you're investing cash or 1031 proceeds. For cash (non-1031) investments, minimums are sometimes as low as around $25,000, because a cash investment carries no exchange-related requirements. For 1031 exchanges, minimums are typically higher — often around $100,000, sometimes ranging from roughly $25,000 to $100,000. But these are general figures, not guarantees: each sponsor sets its own minimum for each offering, so the actual lowest amount you can invest is determined by the specific DST's current terms. Some offerings will have higher floors; some may have lower ones. There's no universal minimum across the market. So if you're looking for a lower entry point, the cash minimum on a particular offering is usually the place to look, but you'll need to confirm the current figure on the live offering's documents. Work with a broker-dealer to identify offerings that fit your intended investment size.
Do DST minimums change over time?
Yes — DST minimums change over time and from offering to offering. A DST that opened at a $100,000 1031 minimum last quarter may have since closed, reopened with different terms, or been replaced by a new offering with a different threshold. Sponsors set minimums per offering, and as deals come and go, the figures shift. Market conditions, the type of property, the size of the equity raise, and the target investor base all influence where a given offering sets its minimum. This is why any general figure — including those in this guide — should be treated as rough guidance, not the actual terms of a specific DST. The only authoritative source for a minimum is the current offering's documents, confirmed at the time you're ready to invest. So don't rely on numbers from an article or from a deal you saw months ago; verify the present minimum on the live offering before committing capital, since the figure may have changed.
How do I confirm a DST's current minimum?
To confirm a DST's current minimum, look at the live offering's documents at the time you're ready to invest — specifically the private placement memorandum (PPM) and current subscription terms, which state the actual 1031 and cash minimums for that offering. Don't rely on general figures from an article or on numbers from a prior deal, since minimums vary by offering and change over time. Confirm the figure for your situation: the 1031 minimum if you're exchanging proceeds, or the cash minimum if you're investing new money. Also confirm availability, because DSTs have a finite amount of equity and can close once fully subscribed — a deal you're interested in may no longer be open. Working through a broker-dealer, you'll receive the current offering terms as part of the suitability and subscription process, so you're investing based on real, present figures. So the authoritative source is always the live offering's documents, confirmed at the moment you invest, not a general expectation.
Does the minimum include the debt in a DST?
The minimum investment in a DST generally refers to your equity contribution — the cash (or 1031 equity) you're putting in — not the debt. Many DSTs carry non-recourse debt at the trust level, which is layered on top of the investor equity. For a 1031 exchanger, this matters because a 1031 exchange generally requires you to replace both the equity and the debt from your sold property to fully defer your gain. A DST's trust-level debt can help satisfy the debt-replacement requirement, so your effective real estate exposure includes both your equity and a proportional share of the DST's debt. When planning an allocation, you'll want to account for both: the equity you're investing (which the minimum governs) and the debt the DST carries (which factors into your exchange math). So the minimum is your equity commitment, but the DST's debt is a separate, important consideration for meeting 1031 requirements. Confirm both the equity minimum and the debt structure on the specific offering with your advisors.
Can I invest in a DST with new cash instead of 1031 proceeds?
Yes — you can invest in a DST with new cash rather than 1031 exchange proceeds, and the minimum is sometimes lower for cash investments, often around $25,000. A cash investment in a DST isn't part of a 1031 exchange, so it doesn't carry exchange-related deadlines or debt-replacement requirements. You're simply investing directly in the DST as a passive real estate holding, receiving your share of the rental income. This can suit investors who want passive, professionally managed real estate exposure but aren't completing an exchange. Keep in mind that a cash DST investment doesn't defer any capital-gains tax (since there's no exchange involved), and the same restrictions apply otherwise — DST interests are illiquid securities offered to accredited investors after a suitability review. So cash investment is an option, often at a lower minimum, but it's a direct investment without the tax-deferral feature that drives most 1031 DST investments. Confirm the cash minimum and terms on the specific offering.
How many DSTs should I split my exchange across?
There's no fixed answer — how many DSTs you split an exchange across depends on your total proceeds, the minimums of the offerings you're considering, your diversification goals, and your risk tolerance. If your proceeds are large and minimums run around $100,000, you have room for several positions; if your proceeds are smaller, you may hold fewer. More positions generally mean more diversification across assets, sponsors, and sectors, which cushions the impact of any single underperformer — but holding too many small positions can add complexity without proportionate benefit. Many investors aim for a handful of well-chosen DSTs that spread across property types and sponsors while keeping the allocation manageable. You'll also need to ensure each position meets its minimum and that the total satisfies your 1031 equity and debt-replacement requirements. So the right number balances diversification against simplicity and is best decided with your advisors based on your specific proceeds, goals, and the offerings available at the time of your exchange.
Are DST minimums negotiable?
Generally, DST minimums are not negotiable — they're set by the sponsor for each offering and apply uniformly to investors in that offering. A DST sells a finite amount of beneficial interests, and the minimum is part of how the sponsor structures the equity raise and sizes the investor pool, so individual investors typically can't negotiate a lower threshold. If a particular offering's minimum is higher than you want to commit, the practical solution is usually to find a different offering with a lower minimum that fits your intended investment size, rather than trying to negotiate. Because minimums vary widely by sponsor and offering, there's often a range of options available at different thresholds. Working through a broker-dealer can help you identify offerings whose minimums match your situation. So rather than negotiating, focus on finding the right offering — the market's variety of minimums means you can usually find a DST that fits your intended size, whether you're investing 1031 proceeds or cash. Confirm the current minimum on each offering you consider.
What happens if I have more proceeds than the minimum requires?
If you have more 1031 proceeds than a single DST's minimum requires, you have flexibility in how to deploy them. You can invest a larger amount in one DST (above the minimum), or — often more usefully — split your proceeds across multiple DSTs to build a diversified replacement portfolio. The low minimums on many offerings make this practical: instead of concentrating all your proceeds in one property, you spread across several DSTs by property type, sponsor, and market. You'll want to ensure each position meets its respective minimum and that your total allocation satisfies both the equity and debt-replacement requirements of your exchange, since a 1031 generally requires replacing all the equity and debt from your sold property to fully defer the gain. Any proceeds not reinvested (boot) may be taxable. So having more proceeds than one minimum requires is an opportunity to diversify across multiple DSTs — plan the allocation with your advisors to fully reinvest and meet your exchange requirements.
Do I need to be accredited to meet a DST minimum?
Yes — regardless of the minimum, you generally need to be an accredited investor to invest in a DST, because DST interests are securities offered under Regulation D, typically Rule 506(c), which limits participation to accredited investors. Accredited status is based on income or net-worth thresholds (broadly, individual income over $200,000 or joint income over $300,000 in the past two years, or net worth over $1 million excluding your primary residence, among other qualifying criteria). So meeting a DST's dollar minimum isn't enough on its own — you also have to qualify as accredited and pass a suitability review conducted through the broker-dealer offering the DST. The suitability review considers your financial situation, goals, liquidity needs, and risk tolerance to confirm the investment is appropriate for you. So accreditation is a separate gate from the minimum: you need both to qualify as accredited and to meet the offering's minimum investment. Verify the current accreditation rules and your status with your advisors before investing.
How does Baker 1031 help me navigate DST minimums?
We help investors understand DST investment minimums — the difference between 1031 and cash minimums, how minimums vary by sponsor and offering, how to plan a multiple-DST allocation, how low minimums enable diversification, and how to confirm the current minimum on any live offering — so you can size your exchange and build a diversified replacement portfolio that fits your goals. DST interests are securities offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), to accredited investors after a suitability review. We help you confirm the current minimum for your situation on any specific offering, plan how to allocate your exchange proceeds across multiple DSTs, and account for the 1031 debt-replacement requirement across positions. Baker 1031 does not provide tax or legal advice — your CPA and attorney handle your specific 1031 and tax situation. We're candid that minimums vary and change, that DSTs are illiquid and fee-bearing, and that distributions and returns are never guaranteed; past performance doesn't guarantee future results. Our role is to help you invest only when suitable for your goals.
Glossary
- Investment Minimum
- The smallest amount a DST offering accepts from an investor.
- 1031 Minimum
- The minimum for investing exchange proceeds, often around $100,000.
- Cash Minimum
- The minimum for new-cash investment, sometimes around $25,000.
- Delaware Statutory Trust (DST)
- A trust holding real estate in which investors own fractional interests.
- Beneficial Interest
- An investor's fractional ownership stake in a DST.
- 1031 Exchange
- A like-kind exchange deferring capital-gains tax on investment property.
- Exchange Proceeds
- Money from a property sale being reinvested in a 1031 exchange.
- Replacement Property
- The new like-kind property acquired in a 1031 exchange.
- Debt Replacement
- Replacing the sold property's debt to fully defer the gain.
- Non-Recourse Debt
- Trust-level DST debt for which investors aren't personally liable.
- Diversification
- Spreading capital across multiple assets to reduce concentration risk.
- Boot
- Unreinvested exchange proceeds that may be taxable.
- Private Placement Memorandum (PPM)
- The offering document stating a DST's terms and minimum.
- Subscription
- The process of formally committing to invest in a DST.
- Accredited Investor
- An investor meeting income or net-worth thresholds for Reg D offerings.
- Suitability Review
- Assessing whether a DST fits the investor before subscription.
Sources & References
- IRS. Revenue Ruling 2004-86
- IRS. Like-Kind Exchanges — Real Estate Tax Tips
- FINRA. Real Estate Investments
- U.S. Securities and Exchange Commission. Investor.gov — Updated Investor Bulletin: Accredited Investors
Disclosures
This article is published by Baker 1031 Investments, LLC for general educational purposes for accredited investors and is not an offer to sell or a solicitation of an offer to buy any security, nor is it tax, legal, accounting, or investment advice or a recommendation. Any securities offering is made solely through a sponsor’s private placement memorandum (PPM) following a suitability determination. Securities offered through Aurora Securities, Inc. (ASI), member FINRA / SIPC; Baker 1031 Investments is independent of ASI.
Oil & gas mineral and royalty interests and DST programs are speculative, illiquid securities sold only to verified accredited investors and involve substantial risk, including possible loss of principal, commodity-price and production-decline risk, lack of control, and the risk that an intended 1031 exchange fails to qualify for tax deferral. Whether a particular interest qualifies as like-kind real property is a fact-specific legal determination that varies by state and by the terms of the instrument. Tax results depend on your individual circumstances. Consult your own CPA and attorney before acting. Past performance does not guarantee future results.
