I’m a Young Real Estate Investor and I Don’t Want to Manage My Own Rental Properties, Is a DST for Me?

Jeff Hertz:
And I guess just to broaden that a second, we talk oftentimes about DSTs, especially like a 721 strategy as being very attractive for somebody in the later phase of life, baby boomers, whatever term you want to use. But what is our whole society trying to get towards? We’re trying to get towards simplicity, quality of life, and being able to manage things from our phone, not from a spreadsheet. And so DSTs can be attractive or these types of strategies in general can be attractive to a wide range of investors who simply say, I want to travel more. I don’t want to let my investments be another full-time job for me.
And so ultimately, a DST might be a solution for somebody who’s much younger, who can still stay in the game and run real estate. I even came across situations years ago where somebody said, I don’t like where the market’s at right now, so I’m going to 1031 exchange into this DST. But I know on the other side, when it liquidates, I could have the option to go back into direct real estate that I manage myself. It’s not like once you go down that path of DSTs that it’s forever going to be the way that you invest.

Wally Smith:
Now, if you’re in a REIT, you do the UPREIT, you’re not going to have-

Jeff Hertz:
That is an end game.