DST Investment Trust Partners
We have been serving our valuable clients in Silver Spring and across Maryland at large for years. Over those years, the reputation we have established is impeccable. Many of our business cases have advanced our client’s financial interests to the max. Among all types of investment, we are notably specialized in DST investment. With a profound and comprehensive understanding of the up-to-date legal development pertinent to DST investment, our licensed business advisors are well equipped to assist you in any way.
DST Investment Trust Partners recognize that every investor who comes to us has their own unique business interest. Therefore, we are fully capable of offering a bespoke investment plan tailored to any individual investors. Our longstanding business operation in the state of Maryland is definite proof of the competency that we own. With our help, any bold ideas, particularly related to property investment, can be transformed into a suitable DST investment. Apart from the core activities relating to DST investment, our one-stop advising service also includes tax and due diligence.
One step closer to your next lucrative investment
Liability
The Delaware Statutory Trust Act 12 §§ 3805(b) provides that “no creditor of the beneficial owner shall have any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the statutory trust”. This statutory footing maximizes the protection over the investor’s properties under DST. In respect of the trust agreement, beneficial owners may participate in the management or effectively control the statutory trust by directing the trustees without taking on any personal liability.
Flexibility
Per DSTA 12 §§ 3823(b), DST enjoys the principle of freedom of contract. It permits the parties to create flexible relationships tailored to their business needs in the DST Trust Agreement. Moreover, DST allows other persons to manage the Trust, including the DST’s beneficial owners. Such a management arrangement shall be manifested in the Trust Agreement.
Expediency
DST empowers a trustee like a general manager to make decisions about the properties. In contrast, other conventional property investment methods typically require every investor to consent to a single change or remedial action about the property. Such a process could go on for days or weeks. It puts DST standing out as a highly time-efficient tool for adapting to changing situations.
Silver Spring, Maryland
Illiquid investment
There is basically no active market for investors to buy and sell their existing DST interests. Therefore, a leaving investor does not have a platform to go to seek any potential buys. In addition, DST interests are mostly tied up with a specific property which the DST invested in. As a result, it is hard to find a purchaser who shares the same taste or financial appetite in terms of the types, locations, and ultimately the value of the DST property. Therefore, it creates a higher hurdle for a leaving investor to get rid of DST interests that she or he acquired.
No financial alteration
DST trustee is restricted to accept more financial contributions to the Trust after the offering is closed. This rule is to protect the original investors’ ownerships from being diluted. Because the beneficiaries of DST cannot participate in the operation of the Trust directly, the trustee is prohibited from borrowing or negotiating new loans, which could alter the financial liabilities of the beneficiaries. In line with preventing the trustee from risking beneficiaries’ interest, the trustee is prohibited from renegotiating the existing lease or entering a new lease unless a tenant enters into bankruptcy or insolvency.
No reinvestment allowed
The profit gained from DST cannot be used by the trustee to reinvest. It must be distributed among the beneficiaries based on the agreement. Besides, the trustee has limited power to spend money maintaining the real estate property, such as standard repairs and minor non-structural changes. However, as mentioned above, the trustee cannot upgrade the property like an investment. Between distribution dates, cash retained in the DST can only be put in short term debt obligations. In the view that the short-term debt can be converted back to cash easily for the upcoming distribution. A fixed amount of cash in the DST is permitted to be retained from distribution. However, earnings and proceeds must be handed over to the beneficiaries promptly on the agreed dates.
The right DST expert just for you
Every DST Investment Trust Partner spends an extraordinary amount of time with every single client to ensure their needs and problems to be heard and addressed fully. Our advisors are fully licensed and widely recognized in the fields they practice. They are ready to work tirelessly and offer a matchless strategic plan only for you. Our wealth management formula addresses the top five concerns most important to affluent families: Investment Consulting, Wealth Enhancement, Wealth Transfer, Wealth Protection, and Charitable Giving. We recognize that every client is unique; hence we do not believe in a streamlined template solution that can apply to all.