According to Brad Watt, an industry veteran recently appointed to be executive vice president and managing director at Behringer Harvard Net Lease Advisors, the DST format is highly restrictive relative to certain asset management and financing requirements, which can result in greater investment discipline relative to the quality and performance characteristics of underlying assets.
So whether you choose to invest on your own or as part of a multiowner structure, a Section 1031 tax-deferred exchange is one of the few remaining tools available to you to increase wealth through real estate investment. Using the DST structure will give you the added benefit of diversification and skilled management, and limit your liability. This will allow you to benefit from the coing wave of wealth creation in the U.S.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.