How DST Investing Works
From property sale to passive income in five steps.
What Is a DST?
A Delaware Statutory Trust (DST) is a legal entity that holds title to real estate, allowing multiple investors to own fractional "beneficial interests" in institutional-grade properties while qualifying for 1031 exchange treatment.
KEY BENEFITS:
1031 exchange eligible (100% tax deferral)
Fractional ownership from $100,000
Professional property management
No landlord responsibilities
Monthly passive income distributions
Diversification across properties
The Investment Process
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List and sell your investment property. Engage a Qualified Intermediary (QI) before closing to hold your sale proceeds for the 1031 exchange.
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Review available Medalist DST offerings. Identify your replacement property in writing within 45 days of your sale closing. This deadline is strict.
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Review the Private Placement Memorandum, property financials, FactRight reports, and independent appraisals. Consult your tax and legal advisors.
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Complete subscription documents and investor suitability forms. Your QI transfers funds to the DST. You become a beneficial owner—with no tax due.
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Begin receiving passive income distributions via direct deposit. Medalist handles all property management— you do nothing but deposit checks.
What Happens at Disposition?
EXIT OPTION 1
CASH OUT
Receive your proportionate share of sale proceeds when the property is sold. Capital gains taxes that were deferred at your original 1031 exchange become due at this point.
EXIT OPTION 2
1031 EXCHANGE AGAIN
Roll your proceeds into another DST or direct property purchase to continue tax deferral indefinitely. Many investors chain multiple 1031 exchanges throughout their lifetime.
EXIT OPTION 3
ESTATE TRANSFER
Hold your DST interests until death. Your heirs may receive a step-up in cost basis, potentially eliminating all deferred capital gains taxes permanently.
EXIT OPTION 4
721 UPREIT
Potential future opportunity to convert DST interests into operating partnership units of a REIT, providing liquidity options and continued tax deferral. Medalist's long-term strategy includes launching a REIT subsidiary for this purpose.*
*721 UPREIT is not guaranteed and subject to REIT structure, approval, and offering terms.
Investment Requirements
WHO CAN INVEST
Accredited investors only as defined by SEC regulations:
$200,000 annual income ($300,000 joint) or
$1 million net worth excluding primary residence
U.S. residence
Suitability review required.
MINIMUM INVESTMENT
$100,000 minimum (cash plus pro rata allocation of property level debt).
Specific minimums vary by offering. Speak to your licensed broker for details.
FEE STRUCTURE
Acquisition:
2-3% (one time)
Asset management:
1-2% (annual)
Disposition: 2.5% (at sale)
All fees disclosed in PPM, no hidden costs .
Why Invest with Medalist?
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PUBLIC COMPANY TRANSPARENCY
NASDAQ-listed (MDRR) with SEC reporting and independent oversight
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INVESTMENT-GRADE FOCUS
BBB+ minimum tenant credit quality on all acquisitions
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FACTRIGHT VERIFIED
Independent third-party due diligence on every offering
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PROVEN TEAM
Institutional real estate experience across retail and net lease