We receive calls daily from investors curious about Delaware Statutory Trusts (DSTs) and 1031 exchanges. Today we'll talk about an essential requirement to complete a fully tax-deferred exchange.

Last week we discussed what you should do while investing in a DST; this week, we will show you "5 Don'ts of DSTs."

When it comes to investing in real estate, there are a lot of vehicles to choose from. Delaware Statutory Trusts (DSTs) have become a popular option for investors in recent years. We thought we would give you a simple list of the things you should do when investing in a DST.

1. You need a QI before you sell:

All exchange transactions, from the sale of the relinquished property to the purchase of the replacement property(ies), must be completed with the assistance of a Qualified Intermediary (“QI”), also known as a 1031 Accommodator or Facilitator.

As we talk about 1031 exchanges and Delaware Statutory Trusts (DSTs), we may mention terms that you don’t fully understand. While there are hundreds of key terms involved in 1031 exchanges and DSTs that you can find defined in any investment glossary, we’ll explore some of the terms we frequently get asked to clarify.