DST vs. Triple Net Properties 
what are the risks?
Which Can Be Disallowed By the IRS in a 1031 Exchange?

Which Has Higher Returns?

In Which One Do You Have Control?

In Which One Can Fees Outweigh Benefits?

Which One Involves a High Degree of Risk?
LEARN HOW 4,000 PROFESSIONAL INVESTORS CHOOSE THE BEST PROPERTIES
What is a Delaware Statutory Trust*
  •  A separate entity in which an investor owns an interest 
  •  Investors do not have title to the property 
  •  Investors have no control of the property 
  •  There are no guarantees for projected cash flow 
What is a Triple Net Property*
  •  Investor owns the property outright
  •  Investor holds title to the property
  •  Investors control the property
  •  Cash flow is guaranteed by a multi-billion dollar corporation
What are the Risks
Delaware Statutory Trusts*
Triple Net Properties*
*Taken from Cornerstone Real Estate Investment Services, dst1031investment.com and Kay Properties & Investments
*Taken from TripleNetCompanies.com
  •  Significant tax risks for acquiring DST interests as replacement property 
  •  Risk of loss of the entire investment principal  
  •  The fact that substantial fees associated with the purchase of the investment may outweigh the tax benefits 
  •  Possible conflicts of interest with program sponsors, trustees, or property managers. 
  •  The risk of relying upon the program sponsor and their continued competency  
  •  The risk of sponsor insolvency 
  •  The risks associated with giving complete discretion regarding the management, leasing or disposition of the property to a third party.  
  •  The risk of being unable to re-finance the program at the end of the term 
  •  Illiquidity (there is currently no secondary market) 
  •  Tax status risk which may result in immediate tax liabilities, including penalties 
  •  The investment is speculative and involves a high degree of risk 
  •  The risks associated with fractionalized ownership in real estate and investment contracts as securities 
  •  Past performance is not a guarantee of future results 

Triple Net Properties*
  •  The property becomes vacant without a corporate guarantee
  •  The tenant competes with Amazon
  •  The tenant is not a public corporation 
  •  The tenant does not have an investment grade credit rating 
  •  The tenant does not guarantee their lease payments 
  •  There are “rent holidays” or “out clauses” in the lease (weasel clauses)
  •  Short-term lease