How to Evaluate a DST Sponsor
The questions that separate a well-run program from a risky one.
Track record
How long has the sponsor operated? How did prior programs perform, including through downturns? Have any programs had distributions cut or losses?
The property and debt
Look at the loan-to-value ratio, the interest rate and whether it's fixed, the loan maturity relative to the projected hold, and the reserves set aside.
Fees and alignment
Review all load and ongoing fees in the private placement memorandum. Ask whether the sponsor invests its own capital alongside investors.
Get help
A specialist can compare multiple offerings side by side, including ones that aren't heavily marketed.
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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.