Zero DST
De-leveraging an exchange
A seller with heavy debt on the relinquished property used a small Zero DST allocation to satisfy the debt-replacement requirement — freeing the rest of the equity for income-producing trusts.
Education
The Zero DST.
A Zero DST is a zero-cash-flow structure: long-term, credit-tenant real estate financed at 80–90% loan-to-value, where all income services the debt. You don't buy it for distributions — you buy it for what the leverage does to an exchange.
Three named strategies
You buy a Zero for what it does.
De-leverage an exchange
Sold with high debt? A small Zero DST allocation replaces a large debt requirement, freeing the rest of your equity for income-producing DSTs.
Unlock liquidity after an exchange
A tax-deferred refinance can return roughly 80–90% of your equity in cash — without triggering the gain.
Buy timeline flexibility
Zeros close fast and absorb odd amounts — the pressure valve when day 45 is close.
By design
What a Zero gives up.
- No current income — every dollar services debt by design
- Credit-tenant concentration: one lease is the whole story
- Best used as a component of an exchange, rarely the whole thing
Case studies
See it working.
Zero DST
Obtaining liquidity after an exchange
A completed exchange left the client equity-rich and cash-poor. A tax-deferred refinance of a zero-cash-flow asset unlocked cash — with no tax event.
Next step
Complimentary Investor Evaluation
Bring us the property, the timeline, and the goal. You'll leave the first conversation knowing every option on the table — and what we'd do in your position.