DST 1031 exchange advice from a fiduciary.
A Delaware Statutory Trust lets you complete a 1031 exchange by buying a fractional interest in professionally managed real estate instead of a whole property. The IRS treats DST interests as like-kind real property under Revenue Ruling 2004-86. We help accredited investors compare DST offerings and plan the exchange around your goals.
Nashional Investments · Updated October 2026
How a 1031 exchange works
You sell investment or business real property and reinvest the proceeds in like-kind property. A qualified intermediary holds the money in between so you never receive it. If you follow the rules, capital gains and depreciation recapture taxes are deferred.
- 45 days after closing to identify replacements in writing, using the three-property rule, the 200% rule or the 95% rule.
- 180 days after closing to acquire them, or your tax return due date if that comes first, unless you file an extension.
- Replace value and debt. Buy at least as much as you sold, reinvest all of your equity, and carry equal or greater debt. Anything short is boot.
Why investors choose DSTs
- No landlord duties. The sponsor manages the property. You receive distributions.
- Closes on the exchange timeline. DSTs are pre-packaged, which helps when the 45-day window is short.
- Diversification. Smaller minimums let you spread one sale across several properties and regions.
- Backup identification. A DST can sit on your identification list as a fallback if a direct purchase falls through.
Trade-offs: DSTs are illiquid for years, you have no control over the property, returns depend on the sponsor and tenants, offering costs are built into the price, and the trust's operating restrictions limit how it can respond to problems.
Six things we review before any recommendation.
The sponsor
Track record through full cycles, including how past programs ended.
The tenant and lease
Credit quality, lease term remaining and rent escalations.
The debt
Loan-to-value, rate, maturity and what happens if the loan comes due early.
The costs
Every load and fee in the offering memorandum, translated into what it costs you.
The exit
Expected hold period and the sponsor's realistic path to a sale.
Your whole picture
How the DST fits your income needs, estate plan and other holdings.
How our fee works
DST work falls under our Alternative Assets Services and Fees Agreement: a one-time flat fee based on the total amount you invest. It covers due diligence, research, meetings and closing support, and it is agreed in writing before your 45-day identification period begins. We share the agreement with you up front.
1031 deadline calculator: your 45-day and 180-day dates from a closing date.
1031 replacement calculator: the value, equity and debt you need to replace.
Alternative investments are speculative, illiquid and intended only for accredited investors who can bear the loss of their entire investment. Tax benefits are not guaranteed and depend on your situation and current law. Offerings are made only by the sponsor's private placement memorandum. Nashional Investments is not a broker-dealer and does not sell securities. Consult your tax and legal advisers before investing. Read our disclosures.
Common questions about DSTs.
Can I do a 1031 exchange into a DST without a broker?
What does a DST cost?
What happens when the DST sells the property?
Can I exchange out of a DST early?
What if my sale has more debt than the DST?
Talk to us before you sell.
Tax outcomes are usually best when they are planned months before a closing date. Your first conversation with us is complimentary.