Question 1

What's the minimum to invest in a DST?

Accepted Answer

Most DST offerings have a minimum investment of $100,000, though some are structured around 1031 exchange proceeds which can vary. The minimum exists because DSTs are offered as securities — they're subject to SEC regulations and available only to accredited investors. We'll walk you through whether you qualify and what options are available at your investment level.

Question 2

How is a DST different from a REIT?

Accepted Answer

Both let you own real estate without managing it, but the structures are very different. A REIT is publicly traded — you buy shares like a stock, and the value fluctuates daily. A DST is a private placement — you own a direct fractional interest in a specific property, it qualifies for 1031 exchange treatment, and distributions are generally more predictable. REITs are more liquid; DSTs are more tax-advantaged. Which is right depends on your situation.

Question 3

Do I have to use a 1031 exchange to invest in a DST?

Accepted Answer

No — you can invest cash directly into a DST without a 1031 exchange. The 1031 path is common because it lets you defer capital gains from a property sale, but it's not required. Some investors use DSTs purely as a passive income vehicle funded with savings or equity from a primary home sale (which may have its own exclusion). We'll help you understand which entry makes the most sense given your tax picture.

Question 4

What's a realistic return on a rental property in Austin right now?

Accepted Answer

It varies significantly by neighborhood, property type, and how the deal is structured. In the current market, a well-chosen single-family rental in Austin might yield a 3–5% cap rate — meaning after expenses but before financing. Once you factor in a mortgage, cash-on-cash returns can be tighter. The numbers matter more than the category: we'll run them on any specific property you're considering before you make an offer.

Question 5

What are the risks of passive real estate investing?

Accepted Answer

Every structure carries its own risk profile. DSTs are illiquid — your capital is typically locked in for 5–10 years, and you have no control over property decisions. Traditional rentals give you control but expose you to vacancy, maintenance costs, and tenant risk. 1031 exchanges are time-sensitive — missing a deadline has real tax consequences. None of these are reasons to avoid real estate investing; they're reasons to go in with your eyes open and the right structure for your situation

Question 6

Can you help me find the property AND advise on the investment structure?

Accepted Answer

Yes — that's actually the most valuable part of working with a Certified Real Estate Planner rather than a traditional agent. We help you think through which structure fits your goals before you start looking, so you're not backing into the decision after you've already fallen in love with a property. Once the structure is clear, we can help you find and evaluate the right property (or DST) to put it into.

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Questions Investors Usually Have

What's the minimum to invest in a DST?

How is a DST different from a REIT?

Do I have to use a 1031 exchange to invest in a DST?

What's a realistic return on a rental property in Austin right now?

What are the risks of passive real estate investing?

Can you help me find the property AND advise on the investment structure?

The Right Structure Changes Everything.

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