One of the most prominent products in the alternative investment space in recent years have been DSTs/1031 Exchanges, which has grown to become an annual $8 billion to $10 billion industry. However, with recent trends in rising interest rates and cap rate compression for many asset classes, due diligence on DST programs in the market has never been more important. With that in mind, FactRight’s chief operating officer (and resident DST expert) Brandon Raatikka joined Ridgegate Financial’s Wallace Smith on the 1031 Show to discuss the importance of 1031 due diligence. The podcast, which you can check out below, covers several topics that broker-dealers and RIAs should consider when evaluating the 1031 space, including the following:
- The benefits of a third-party due diligence report
- Trends in the 1031 space
- An overview of DSTs and key benefits of DST investments
- Key differences between TICs and DSTs, including the Seven Deadly Sins
- A primer on 721 UPREITs
- Areas of focus for evaluating a DST sponsor
If you’re looking for further due diligence support on DSTs or other alternative investments, please contact FactRight’s team of analysts. In addition, we urge you to check out some FactRight’s other posts pertaining to DSTs, including the following:
- The Top Five Ways to Gain an Edge in DST Due Diligence
- Can UPREITs Allow You to Avoid Paying Capital Gains Tax Indefinitely
- Key Due Diligence Considerations for UPREIT Exit Transactions for 1031 DST Programs
- Multifamily DST Distributions During a Pandemic
You can also check out FactRight’s other resources below:
Contact Information:
Chief Operating Officer
(612) 284-8541
