COMPARISON GUIDE
DST vs. Direct Property Ownership
Compare the benefits and trade-offs of Delaware Statutory Trust investments versus owning and managing property directly.
Passive Investment
Delaware Statutory Trust
A hands-off approach to real estate investing through fractional ownership of institutional properties.
Truly passive — no management responsibilities
Access to institutional-quality properties
Low minimums ($100K–$250K) for diversified real estate
Qualifies as 1031 exchange replacement property
Professional asset management and reporting
No ability to make property-level decisions
Finite hold period (typically 5–10 years)
Less liquidity than direct ownership
Available to accredited investors only
Active Investment
Direct Property Ownership
Full ownership and control of a specific property with direct management responsibilities.
Full control over property decisions
Ability to add value through improvements
Flexibility to refinance or sell at any time
Potential for higher returns with active management
Build equity through mortgage paydown
Requires hands-on management or hiring a property manager
Tenant issues, maintenance, and vacancy risk
Concentrated risk in a single property or market
Harder to meet 1031 deadlines with limited inventory
| Factor | DST | Direct Property |
|---|---|---|
| Management | Fully passive | Active or hired manager |
| Minimum Investment | $100K - $250K | Varies (20-30% down) |
| 1031 Eligible | Yes | Yes |
| Control | None (sponsor manages) | Full control |
| Diversification | Easy (multiple DSTs) | Requires more capital |
| Liquidity | Limited (hold period) | Can sell at any time |
Which Investment Approach Is Right for You?
Many investors use a combination of both strategies. Our advisors can help you find the right balance based on your goals, timeline, and desired level of involvement.
Discuss Your Options