Answer
Feb 13, 2025 - 11:30 AM
That's the second time in two days I've got that question. I don't get that question a lot, which is nice. The answer is yes. We have had not call in, but only because DSTs are structured for 1030 most changes and all of our marketing, frankly, is focused on the 1031 aspect. But absolutely, we have had clients that have invested cash, not doing a 1031 exchange into a DST. And one of the benefits of investing in a DST with cash, even though there are so many real estate options, is the fact that when the property is sold, you can exchange into another property. Whereas if you invest in an LLC or a limited partnership program or any other structure other than a DST, when that program liquidates, you have to pay the taxes because there's no way to exchange that interest into something because it doesn't qualify for a 10th or a exchange. So in addition to all the other things I've talked about with a DST, just the mere fact that you can exit that DST investment in exchange and not get hit with capital gains tax is worth consideration for investing as an initial cash investor.
