David Waal of Irvine Advisors shares insight on Who a Delaware Statutory Trust (DST) is suitable for

SAN FRANCISCO, Jan. 16, 2026 /PRNewswire/ -- One of the questions I get on a regular basis is "Are DSTs the right investment for me?"  Like most things in life, the answer is "it depends".  If you fit one or more of the criteria below it may be worth exploring DSTs in more detail.

Conversely, who should not invest in DSTs: 

In short, DSTs are for investors looking to get out of actively managing their properties and do a 1031 exchange into institutional grade properties that are managed by professionals. They are looking for passive income potential and a diversified portfolio.  They understand that it is still real estate, which comes with the benefits and risk of real estate.

1031 Risk Disclosure:There is no guarantee that any strategy will be successful or achieve investment objectives.  Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments. Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner's income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities. Potential for foreclosure – All financed real estate investments have potential for foreclosure. Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. The secondary market for these investments is very limited, and early exit sale is not guaranteed. Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions.  Impact of fees/expenses – Costs associated with the transaction may impact investors' returns and may outweigh the tax benefits.

For more information on Emerson Equity, please visit FINRA's BrokerCheck website.

General DisclosureNot an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only.

Securities through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.

Media Contact: David Waal  Irvine Advisors [email protected] 

SOURCE Irvine Advisors