What is it?
At Kay Properties and Investments, we are different in that we strive to mystery shop every DST property that we have clients invest in. A novel thought right? Visit real estate as part of your due diligence.
This level of boots on the ground review of the property and its neighborhood is unheard of in the DST industry. No other broker dealers or registered representatives place the time, money, and energy into mystery shopping virtually each and every DST like Kay Properties does. You can crunch the numbers all you want (which Kay Properties analysts love doing) but without visiting the property, you “due” has not been “done” and you “diligence” has not been diligent.
At the time of writing we have Kay Properties team members as well as independent property inspectors that we have commissioned (these are the same inspectors that Fannie Mae, Freddie Mac, CMBS Lenders, and other institutional investors commission) performing over 50 property tours on DST properties throughout the country. We strive to potentially perform these property tours on virtually all properties in portfolio DSTs whereby one DST will have, for example, 10-20 individual properties in it.
What are some of the items we look for when mystery shopping DST properties?
- Surrounding area trends
- Competition
- Deferred maintenance
- New construction
- Undeveloped land
DST Mystery Shopping–Another reason that Kay Properties and Investments is considered by many to be the undisputed leader in the DST industry*.
DST properties and real estate are considered high risk investments. Please review the Private Placement Memorandum (PPM) prior to considering an investment and pay careful attention to the risk factors. Please note that visiting a property and conducting a physical inspection does not guarantee against the risk of a complete loss of investment principal. There may be times where we may not be able to conduct property tours at all properties and in those cases, we will rely on 3rd part appraisals for property reviews. This material is not to be considered tac or legal advice. Please speak with your CPA and Attorney for advice and guidance prior to considering an investment.
*Based on our own internal and external research.