DST 1031 Exchange Guide: How Encore Retirement Planning Helps You Navigate Delaware Statutory Trusts

Most people who explore Delaware Statutory Trusts aren’t chasing a hot investment. They’re tired.

Tired of tenants.
Tired of repairs.
Tired of being responsible for someone else’s midnight emergencies.

For many, the property has been held so long the depreciation is gone, the taxable gain is enormous, and selling without a 1031 exchange would hurt. DSTs and 721 UPREIT exchanges start to look like clean exits from a chunky, illiquid asset.

But once you start looking around, you quickly discover the DST marketplace is dominated by large firms with polished marketing and high embedded fees. A typical DST carries an internal load of about 5% earmarked for the rep who sells it to you. On a $1,000,000 exchange, that’s roughly $50,000 in friction before your money even starts working.

This is normal, typical, and customary. But it’s not your only option — and rarely your best one.

Why Work With an RIA for a DST 1031 Exchange?

When you buy a DST through a broker-dealer, you are buying through a commission-based product channel. The offering shelf is curated. Incentives are embedded. The advice is bundled with distribution economics.

Registered Investment Advisers (RIAs) operate differently.

RIAs don’t receive commissions, revenue-sharing, or placement fees from DST sponsors. It’s written into the contracts with DST sponsors:

The compensation is transparent. You pay for advice, judgment, and diligence. That distinction matters when you’re making a million-dollar decision under time pressure.

Working with an RIA gives you:

  • access to the wide universe of DST programs (not a broker-dealer shelf)
  • a fiduciary partner obligated to prioritize your best interest
  • an analyst—not a salesperson—walking you through risks and tradeoffs
  • a more flexible, tailored search process
  • coordinated tax positioning to maximize deductions and minimize leakage

This model is built for people who want to preserve wealth, avoid mistakes, and move deliberately through a high-stakes transaction.

How Encore Retirement Planning Guides You Through a DST 1031 Exchange

Here is the exact process I use with clients — open, methodical, and designed to reduce blind spots.

1. We Start With a Clear Understanding of Your End Goal

This includes:

  • your desired outcome from the exchange
  • debt that must be replaced
  • your prior experience with direct participation programs
  • liquidity needs
  • how you handle income tax compliance
  • your timeline/endgame
  • your openness to a future 721 exchange

This conversation frames everything that follows.

2. We Run a Systematic Scan of the Entire DST Universe

As of this writing, there were 92 active DST programs across multiple sectors, sponsors, and geographies. You get the benefit of a wide view — not just a curated slice.

3. We Narrow the Field Using High-Level Filters

We evaluate:

  • sponsor experience and track record
  • sector exposure (industrial, multifamily, medical, self-storage, etc.)
  • geographic distribution
  • debt structure and leverage levels
  • number of underlying properties
  • days on market
  • state income-tax considerations

This creates a manageable shortlist. What’s left are the DST programs that meet our most important criteria.

4. We Conduct Deep Due Diligence Using Independent Third-Party Analysts

DSTs are complicated. Underwriting is often optimistic. Loan covenants can be tight. And not every deal is created equal.

So we bring in specialists — FactRight, Snyder Kearney, Mick Law, and Buttonwood — firms with deep experience evaluating non-traded real estate offerings.

They:

  • stress-test assumptions
  • evaluate sponsor strength
  • analyze local market fundamentals
  • examine fee structures
  • identify legal or operational red flags
  • compare each DST relative to its peers
  • and much, much more.

This process is designed to protect you from the mistakes investors typically make when they’re rushed, under-informed, or relying on sales-driven summaries.

5. We Build and Rank Your Identification (ID) List

You select the finalists. We rank them together. We create a clear primary, secondary, and tertiary path.

The goal is simple: No surprises during your 45-day ID period. No scrambling. No regrets.

6. Execution: Subscription Documents, Escrow, and Closing

Once the ID list is finalized, we:

  • coordinate with your Qualified Intermediary
  • complete the subscription paperwork
  • monitor availability (DSTs can close quickly)
  • confirm allocations and timing

I also structure the engagement so that most or all of the advisory fee is treated as a deductible closing cost paid directly from QI proceeds, minimizing out-of-pocket cost wherever possible.

The result is that you have a fiduciary partner walking beside you from initial scan to final wire.

Final Thoughts: A Process Driven Path to a DST 1031 Exchange

A 1031 exchange is one of the most consequential real-estate decisions you’ll make. DSTs can play a significant role and offer you options you otherwise could not access. Of course, you cannot guarantee outcomes, but you can control the quality of your analysis, the clarity of your process, and the alignment of incentives.

If you want a thoughtful, thorough, and transparent approach — one that prioritizes your long-term outcome rather than product distribution — an RIA-based DST process is a cleaner way to get there.

And you don’t have to go through it alone.

Ready to explore whether a DST or 721 exchange fits your goals? Schedule a consultation and get a clear, independent assessment of your options—backed by fiduciary expertise, comprehensive due diligence, and a process designed to protect your long‑term wealth.