Replacement options

Passive Real Estate Investing Options

A comparison of structures investors commonly evaluate when stepping back from active property management.

Delaware Statutory Trusts (DSTs)

Beneficial interests in institutional real estate, treated as like-kind for 1031 purposes. Fully passive, accredited-only.

Triple-net (NNN) leased property

Direct ownership of a single-tenant property where the tenant covers taxes, insurance, and maintenance. Hands-off but concentrated.

Multifamily real estate

Apartment communities offer scale and potential income; typically more management-intensive unless held through a passive structure.

Diversified portfolios

Some investors split exchange proceeds across multiple DSTs or property types to spread sponsor, geography, and asset-class risk.

Important disclaimer: The information on this page is for educational purposes only and does not constitute tax, legal, or investment advice. 1031 exchanges and DST investments involve significant risks, including illiquidity and potential loss of principal. DSTs are typically offered only to accredited investors through registered representatives. Always consult qualified tax, legal, and financial professionals before making any investment decision.