The History of DSTs: How They Changed Real Estate

The History of DSTs: How They Changed Real Estate

June 19, 2025 Off By Glespynorson

What Are DSTs?

DST means Delaware Statutory Trust. It started in Delaware, a state in the U.S. A DST lets many people own a part of one big property. This way, they all share the money the property makes.

The Beginning of DSTs

The history of DSTs started in the 1980s. Back then, few people knew about them. It was hard for regular people to buy big buildings. But DSTs helped many people put their money together to own big places like stores and apartments.

A Big Change in 2004

In 2004, the IRS made a new rule. This rule said people could use DSTs in a special way called a 1031 exchange. This means they could sell one property and buy into a DST without paying taxes right away. This made DSTs very popular.

How DSTs Work Today

Today, many people invest in DSTs. The buildings are managed by professionals. Investors do not need to fix things or find renters. They just get a part of the money the property makes.

Why People Like DSTs

Many people like DSTs because they are easy and safe. Investors are not responsible if something bad happens to the property. Also, DSTs let people with less money join in on big deals.

DSTs and Retirement Planning

Many people use DSTs to help plan for retirement. Since DSTs provide steady income without much work, they are good for people who want to relax after years of hard work. The history of DSTs shows that more retirees are choosing DSTs as a safe way to keep their money growing.

How to Start with DSTs

Starting with DSTs is easier than many think. You just need to find a good company that offers DST investments. Then, you decide how much money to put in. Because the history of DSTs is full of success stories, many people feel confident giving DSTs a try.

DSTs Make Real Estate Fairer

Before DSTs, only rich people could buy big properties. Now, many people can invest smaller amounts and still be part of big properties like malls, hotels, and offices.

What the Future Holds for DSTs

The history of DSTs shows they keep growing. More people learn about them and want to invest. DSTs are simple, safe, and smart. They will likely be used by more people in the future.

Who Can Benefit from DSTs?

The history of DSTs shows that many kinds of investors can benefit from them. Some people want to grow their money slowly and safely. Others want to use DSTs to help with their taxes. Because DSTs are easy to join and manage, they are good for beginners and experienced investors alike.

How DSTs Help Communities

DSTs don’t just help investors—they also help communities. When a big building is well cared for, it can bring new jobs and stores to the area. This makes the neighborhood better for everyone. The history of DSTs includes many stories of properties improving over time because of good management.

DSTs and the Economy

DSTs play an important role in the economy too. By making it easier to invest in big buildings, DSTs help create money flow in cities. This means more construction, more workers, and more business. The history of DSTs shows how this small legal idea grew to help many people and places.

Conclusion

The history of DSTs is a story about a new way to own property. It started in Delaware and grew to help many people invest. DSTs make it easier to earn money from real estate without a lot of work. This is why DSTs are a popular choice today.