Things to Know About DST Properties

by | May 2, 2014 | Financial Services

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logo2There are many methods to investing in real estate and one of those are known as DSTs. This is an abbreviation for a Delaware Statutory Trust and this is a very specific type of investment vehicle that is used to allow multiple owners of a particular property. The principle is rather simple, but it can be confusing to people who aren’t real estate experts. Essentially, this is the preferred method for having multiple owners for a singular piece of property. This is very helpful for investors who don’t have an excessive amount of capital to purchase a commercial building on their own. It also allows the investors to have continual beneficial interest from their investment.

However, if you’re looking to invest in this type of real estate, you’ll need to look specifically at companies that offer Dst Properties. It’s not surprising to find that many people who are interested in these types of properties have never invested in this sort of real estate before. This means that many of the interested investors won’t know what they’re looking for in a particular commercial property. For that reason, there’s a few things you’ll need to understand about Dst Properties. The first thing to understand is that there are a few different types of properties that are typically invested in through DST’s.

The first are triple net properties. These are properties where the occupant is required to pay the insurance cost for the building, pay the taxes for the building as well as paying for any maintenance and improvements that needs to be done to the facility.

Multi family facilities, such as apartment complexes, are another excellent DST type investment. These investments pay off very well, even in a very short period of time. However, care of the property does fall to the investors.

Lastly are medical medical buildings. This doesn’t mean hospitals, but it does include medical office plazas as well as standard office buildings with a focus on the medical industry. Care of the building can fall to either the investors or the renters, depending on the lease.

DSTs can help you to move forward in investing in larger and more substantial pieces of property in the future. Taking your limited amount of investment capital and investing it in Dst Properties can help you to gain experience and to add to your investment capital for bigger real estate investments in the future.

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