Answer
Feb 13, 2025 - 11:30 AM
No, that's a great question. When that property is sold in a conventional DST, you are a fractional owner in that property. And you have the same experience as any 1031 exchange of a property that you owned completely in that, at the moment that that property is sold, you can either take the money and pay the taxes, do a 1031 exchange into another DST. Or if you wanted to, you could do a 1031 exchange back into a traditional real estate. Hardly, anyone does that. That's the reason they went into a DST in the first place because they're sort of wanting to retire from being an owner operator. But now you are in full control of what you're gonna do with those proceeds. And of course, the sponsor of that Delaware statutory trust would love for you to reinvest with them. And so most of these sponsors will have another DST waiting for you. And if they've delivered on their promise and you've had a good experience, then they probably earned your consideration to reinvest with them again. But you have full control. And I'm here to help you make that decision five, six, seven, eight years later on your next round of a 1031 exchange.
