Our Recommendation for Ronen Strassburg
A tailored recommendation based on your specific goals, concerns, and financial situation.
What You Value
Based on our conversations, these are the priorities that matter most to you:
Full Exit from Active Management
Transition completely from hands-on property management to fully passive ownership with zero operational responsibilities.
Passing Wealth to Heirs
Preserve and transfer wealth to the next generation with the potential for a stepped-up cost basis, potentially eliminating deferred capital gains.
Tax Deferral
Defer 100% of federal and state capital gains taxes on the sale of deeply appreciated properties through a 1031 exchange into a DST.
Institutional-Caliber Management
Entrust your capital to world-class real estate operators with decades of track record and billions in assets under management.
The Recommended Path
At Flock, we work with landlords who own portfolios of rental properties — often free and clear or with low leverage — and are looking for a tax-efficient path to retirement. Many self-manage their properties and are ready to step away from the day-to-day demands of being a landlord. Some have explored DSTs before but were put off by experiences with smaller, less credible operators. We specialize in connecting these investors with institutional-caliber solutions they can trust.
Our Recommendation
We recommend executing a 1031 exchange into one or more DSTs sponsored by Brookfield and/or Ares — firms with exceptionally strong management, institutional governance, and proven DST track records.
Why the DST & UPREIT Path Stands Apart
Not all DSTs are created equal. The institutional DST-to-UPREIT pathway we recommend offers structural advantages that set it apart from traditional DST investments and other exit strategies:
Institutional Scale & Stability
Your capital is managed by firms like Brookfield and Ares — operators with hundreds of billions in real estate AUM. This isn't a small syndication with a single property and an unknown operator. It's institutional-grade stewardship backed by publicly registered REIT vehicles.
Zero Personal Liability
As a DST beneficial interest holder, you have no personal liability for the property's debt, operations, or legal exposure. Non-recourse financing means creditors cannot pursue your personal assets — a stark contrast to direct property ownership.
Liquidity After the Hold Period
Through a 721 UPREIT exchange, you can convert your DST interest into operating partnership units in the sponsor's REIT — typically after a 2-year minimum hold. From there, you may have the option to redeem OP units for cash, giving you a path to liquidity without triggering the deferred capital gains.
Diversification Across Properties & Sponsors
You can split your exchange proceeds across multiple DSTs — different property types, geographies, and sponsors — reducing concentration risk far beyond what any single direct investment could achieve.
Estate Planning Advantages
OP units held at death may receive a stepped-up cost basis, potentially eliminating all deferred capital gains for your heirs. This makes the DST-to-UPREIT path one of the most powerful estate planning tools available to real estate investors.
No Active Management Required
The sponsor handles everything — leasing, maintenance, tenant relations, capital improvements, insurance, and compliance. Your involvement is limited to reviewing quarterly statements and collecting distributions.
Not All-or-Nothing
You don't have to commit 100% of your equity to this path. Many investors allocate a portion of their proceeds to DSTs while directing the remainder to other strategies. The flexibility to calibrate your exposure is a key advantage.
Flock isn't your advisor — and we don't earn fees from where you end up. A typical advisor or placement agent might take 5–10% off the top. We don't. Our only incentive is to make sure you have a great experience. If we do right by you, you'll tell other landlords — and that's how we grow this business.