How to Construct a Portfolio of DSTs

• Diversification of geography, asset class, and leverage (LTV)

• Different asset classes typically have different lease term (number of years in the lease)

• Storage, Multifamily, Senior Living & student housing have 1–2-year lease terms. During periods of demand outpacing supply Landlords can increase rent rolls

• Health Care typically has 5–10-year terms providing portfolio stability.

• Industrial & Big Box retailers provide 10-20 long-term leases.

Attempt to create a portfolio with a high enough LTV to create enough passive loses to make passive income Federally tax-free income