We firmly believe that when it comes to real estate investments, a syndicated DST property stands out for its extensive interdisciplinary due diligence. However, it is crucial for the investor to conduct their own due diligence investigation in addition to the four layers of due diligence already present in each DST offering. The wise investor should thoroughly review all the offering materials, including the PPM, supplemental statements, and offering summary. Furthermore, they will need to sign various forms from both the sponsor and the broker-dealer, confirming their understanding of the risks associated with the investment.
Apart from the offering documents, the investor can gather valuable information by conducting an internet search on the property’s demographics, business reports, press releases of major tenants, and industry trends and data. Surprisingly, a significant amount of information regarding tenant financial statements and credit ratings can also be found online. Most sponsors are willing to cover the expenses for the investor’s travel and accommodations to visit the DST property, providing a comprehensive tour. Cornerstone strongly recommends a property tour, especially for investments that hold significant financial importance to the investor.