How Do DST Investors Get Paid?
Distributions, sale proceeds, and what drives each.
Ongoing distributions
If the property generates net income after expenses, debt service, and reserves, the trust may distribute it to investors, often monthly. Distributions are not guaranteed and can be reduced or suspended.
Sale proceeds
When the sponsor sells the property, investors receive their share of the net proceeds. They can generally complete another 1031 exchange or take the cash and pay the deferred tax.
Tax reporting
Investors typically receive annual reporting showing their share of income and expenses, including depreciation, for use with their tax return.
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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.