DSTs: The Smart Income Solution for 60+ Real Estate Owners

Are you a rental property owner over 60? Have years of managing tenants, handling repairs, and navigating the complexities of real estate investing left you longing for a simpler, more stable income solution? If so, you’re not alone—and there’s a smarter way forward.

Say Goodbye to the Burdens of Property Management

For many seasoned real estate investors, the appeal of reliable rental income often fades when weighed against the challenges of active property management. Between late-night maintenance calls, tenant turnover, and the never-ending list of repairs, the workload can feel overwhelming.

That’s where Delaware Statutory Trusts (DSTs) come into play. With a DST, you can leverage the income-generating power of real estate while shedding the headaches of ownership responsibilities.

What is a DST?

A Delaware Statutory Trust (DST) is a legal structure that allows individuals to co-own income-producing real estate with other investors. By investing in a DST, you’re purchasing a fractional interest in high-value, professionally managed commercial properties—think shopping centers, office buildings, and healthcare facilities.

Even better? DSTs allow you to enjoy all the benefits of owning real estate without actually managing it.

Why DSTs Are Tailor-Made for 60+ Investors

DSTs are a financial planning powerhouse, offering a range of solutions to meet the most pressing needs of rental property owners nearing or in retirement. Below, we’ll explore exactly why DSTs stand out as a smart income solution.

1. Consistent, Passive Income You Can Count On

When you invest in a DST, you’ll receive pro-rata shares of the rental income generated by high-quality, long-term leases. These leases are typically with creditworthy tenants for essential properties like pharmacies or grocery stores, ensuring stability even in volatile markets.

Real-Life Example:

John and Mary, both 67, owned three rental properties that they managed themselves. While the income was steady, the effort it took to maintain the properties was exhausting. By exchanging their properties for a DST through a 1031 exchange, they now receive consistent monthly distributions—completely hassle-free.

2. 1031 Exchange Tax Deferral

For an investor planning to sell a rental property, the potential capital gains tax burden can be daunting. Enter the 1031 exchange. DSTs are 1031 exchange-eligible, meaning you can defer capital gains taxes when swapping your active rental property for a fractional DST investment.

This allows you to preserve more of your equity, reinvesting 100% of its value into a passive income source rather than losing a significant portion to taxes.

Why It Matters:

Without a 1031 exchange and DST option, John and Mary would have faced a substantial tax bill—reducing their nest egg significantly. Instead, the tax deferral helped them maximize their real estate wealth.

3. Diversification Without the Complexity

With traditional real estate, you might be limited to investing in a single rental property. DSTs, on the other hand, allow you to diversify across multiple properties and industries within a single investment structure. This diversification shields your portfolio from sector-specific risks, creating a more stable financial foundation.

For 60+ investors who value income reliability, this security is invaluable.

4. Hands-Off, Stress-Free Management

One of the most attractive features of a DST is professional property management. You don’t have to worry about chasing down late rent, coordinating repairs, or marketing vacant units. This means you can truly step back and enjoy the benefits of your investment without lifting a finger.

For retirees, this translates to more time spent focusing on what truly matters—whether it’s traveling, spending time with loved ones, or simply enjoying retirement.

5. Estate Planning Made Easier

Planning your legacy shouldn’t feel complicated, and DSTs help ensure that your investments align with your estate planning goals. Because DSTs provide fractional ownership, they’re much easier to divide among heirs compared to physical real estate.

Additionally, DST properties are structured to pass to your beneficiaries at a stepped-up cost basis, reducing their future tax liabilities. This means your hard-earned wealth is preserved and smoothly transferred to the next generation.

6. Liquidity and Long-Term Growth

For investors concerned about flexibility, DSTs offer structured exit strategies. Once the property within the DST is sold (typically after 5–10 years), your initial investment and any growth are returned to you. From there, you can reinvest in another DST or allocate the funds as you see fit.

This type of flexibility ensures that your investments remain aligned with both your income needs and your financial goals.

Could a DST Be Right for You?

DSTs are an excellent fit for rental property owners who are ready to transition from active management to passive income. They’re especially ideal if you’re looking to:

• Eliminate the challenges of hands-on property management.

• Maximize your real estate wealth while deferring taxes.

• Simplify estate planning and leave a clear legacy.

• Diversify your investment portfolio for added stability.

However, as with any investment, it’s essential to evaluate whether DSTs align with your individual goals and risk tolerance.

The Medalist REIT Advantage

Partnering with the right team is crucial when considering DST investments, and Medalist REIT stands out as a trusted leader in the space. Our team specializes in helping 60+ real estate owners achieve financial freedom through expertly managed DST portfolios.

Whether you’re aiming to complete a seamless 1031 exchange, diversify your investments, or streamline your estate planning, Medalist REIT provides the knowledge, resources, and guidance you need to make confident decisions.

Take the Next Step Toward Simplicity and Stability

It’s time to retire from the hassle of property management without giving up the income you’ve worked so hard to build. With DSTs, you can enjoy a secure, stress-free income solution while preserving your wealth and preparing for the future.