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  1. A DST is a bankruptcy-remote entity that prevents potential creditors of the investors from reaching the DST property. This provides the lender greater security in having the ability to foreclose on the first mortgage of the property should the need arise.
  2. Unlike the TIC structure, there is no one-year time limit on the term of the property manager. This gives the lender more assurance that the sponsor will continue operating the property without interruption.
  3. The lender does not need to qualify any of the investors because they are not the borrowers, nor do they have the power to negatively impact the loan. Not having to qualify each investor saves time and money.
Please refer to The Seven Deadly Sins for a discussion of risks associated with DST's.
 
   
   
   
     
 

Resources
Overview
TIC Limitations
Investor Benefits
Lender Benefits
The Seven Deadly Sins
The Springing LLC