DST vs. Tenant-in-Common (TIC)
Why many sponsors moved from TIC structures to DSTs, and how they compare.
How TICs work
In a tenancy-in-common, each investor holds a direct, undivided deeded interest in the property. TICs are limited to 35 owners, and major decisions often require unanimous approval.
Where DSTs differ
A DST can have many more investors, lenders deal with one borrower (the trust), and decisions are made by the trustee. That simplifies financing and operations.
The trade-off
TIC investors keep more control; DST investors give up control in exchange for simplicity and generally lower minimums.
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Schedule a Strategy CallEducational information only; not tax, legal, or investment advice. DSTs involve risk, including loss of principal, and are available only to accredited investors. Consult your own advisors.