1031 Exchanges and DSTs: A Guide for Real Estate Investors
The 45-day and 180-day rules, identification options, how Delaware Statutory Trusts fit, and 2025 DST market data.
Read →For Former landlords going passive
From landlord to LP: what changes when you go passive
You know real estate. What you give up (control) and gain (scale, time) when you move into syndications, DSTs or funds.
Why it comes up
Why former landlords look at private real estate
- Tired of tenants, toilets and repairs.
- Scaling into larger properties than you could buy alone.
- Possible 1031 exchange into DSTs.
What to watch
Considerations specific to you
- You'll have no control over operating decisions.
- 1031 deadlines (45 and 180 days) are strict; plan before you sell.
- Compare fees to your own cost of self-managing.
Accreditation
How accreditation usually applies
Most private real estate offerings are limited to accredited investors. Sponsors using Rule 506(c) must verify your status.
- Net worth test: $1 million+, alone or with a spouse or spousal equivalent, excluding your primary residence.
- Income test: $200,000+ individually or $300,000+ jointly in each of the last two years, with the same expected this year.
Summary of SEC rules for education. Confirm your status with your advisor; sponsors may request documentation. See who qualifies.
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Educational content only; not investment, tax or legal advice, or an offer to buy or sell any security.