---
title: "The DSTs We Say No To: How to Judge a DST Marketplace by What It Rejects"
description: The best DST marketplace is not the one with the most listings, but the one with the strictest rejection process. How Fortitude vets 1031 exchange offerings.
image: https://www2.1031dst.com/hubfs/pexels-jacky-chiu-1418472-16933476.jpg
---
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# [The DSTs We Say No To: How to Judge a DST Marketplace by What It Rejects](https://www2.1031dst.com/insights/dsts-we-say-no-to-judging-a-dst-marketplace)
By [Jeffrey Kiesnoski](https://www2.1031dst.com/insights/author/jeffrey-kiesnoski) | 16, July 2026
[READ NOW](https://www2.1031dst.com/insights/dsts-we-say-no-to-judging-a-dst-marketplace)
[](https://www2.1031dst.com/insights/author/jeffrey-kiesnoski)
[Jeffrey Kiesnoski](https://www2.1031dst.com/insights/author/jeffrey-kiesnoski)
Tags: [Delaware Statutory Trust](https://www2.1031dst.com/insights/topic/delaware-statutory-trust) [DST](https://www2.1031dst.com/insights/topic/dst) [1031 Exchange](https://www2.1031dst.com/insights/topic/1031-exchange) [DST Sponsor](https://www2.1031dst.com/insights/topic/dst-sponsor) [Real Estate Investing](https://www2.1031dst.com/insights/topic/real-estate-investing) [Due Diligence](https://www2.1031dst.com/insights/topic/due-diligence)
*“The offerings we decline never make it into a brochure, but they’re the most important work we do. Every deal we turn down is a client who never had to find out the hard way that a structure was broken.” **— Daniel Raupp, Founder & Managing Partner, Fortitude Investment Group LLC***
> **Quick answer:** The best DST marketplace is not the one with the most listings. It is the one with the strictest rejection process. Before any Delaware Statutory Trust reaches the Fortitude Investment Group platform, it is reviewed against IRS Revenue Ruling 2004-86, screened by independent tax attorneys, and tested against the structural failures that have cost investors their tax deferral. Many offerings do not make it through.
## Why does rejection matter more than selection?
Every DST platform advertises what it offers. Almost none discuss what they decline. That silence matters, because a 1031 exchange investor is not just buying real estate. They are buying a legal structure, and a single structural defect can recharacterize the entire trust and trigger the very tax bill the exchange was meant to defer, for every investor in it.
Since 2006, our firm has reviewed offerings across more than 1,000 completed exchanges and approximately $1.7 billion in assets under advisement. The lesson of twenty years is simple: the deals you avoid protect clients more than the deals you select.
## What does a rejected DST actually look like?
Recently our compliance review declined a nine-figure logistics DST that looked impressive on paper. Underneath, we identified multiple disqualifying issues, including leverage above 85 percent loan to value, a structure paying investors zero cash flow for twenty years, a conditional tax opinion tied to ongoing construction, an untested four-tier trust structure, and a Transfer Distribution provision that would have extinguished investors' future 1031 exchange rights entirely. Our independent tax counsel confirmed the concerns. We did not approve it. No listing fee or commission is worth a client's deferral.
## What should investors ask any DST marketplace?
Before registering with any platform, ask three questions. First, who reviews offerings, and are they independent of the sponsor? Second, has the firm ever rejected an offering, and can they explain why? Third, does the review specifically test the Seven Deadly Sins under Rev. Rul. 2004-86, the seven prohibited actions that can disqualify a DST from like-kind treatment?
A marketplace that cannot answer those questions clearly is a listing service, not an advisor.
## The bottom line
Inventory is easy. Discipline is rare. If you are an accredited investor comparing DST marketplaces for an upcoming 1031 exchange, judge each platform by its rejection standards, not its brochure. To see how a rejection-first review process works, and to explore offerings that have passed it, visit [www.1031dst.com](https://www.1031dst.com) or speak with our team directly.
---
*Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Fortitude Investment Group is independent of CIS and CAM.*
*This material is for informational purposes only and is not an offer to buy or sell any security or investment product. DST investments are available to accredited investors only and involve substantial risk, including illiquidity and potential loss of principal. Past performance does not guarantee future results. All investments involve risk, including possible loss of principal. Consult your tax, legal, and financial advisors before making investment decisions.*
# [Jeffrey Kiesnoski](https://www2.1031dst.com/insights/author/jeffrey-kiesnoski)
Since Founding Fortitude Investment Group, Jeffrey has been providing accredited investors with real estate investment opportunities utilizing the Delaware Statutory Trust (DST) for their 1031 exchange needs. A licensed registered representative since 1995, he provides wealth management solutions for investors nationally and internationally, focusing on access to multiple investment products from multiple firms.
This is for informational purposes only and is not an offer to buy/sell an investment. There are risks associated with investing in Delaware Statutory Trust (DST) and real estate investment properties including, but not limited to, loss of entire principal, declining market value, tenant vacancies and illiquidity. Diversification does not guarantee profits or guarantee protection against losses. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This information is not meant to be interpreted as tax or legal advice. Please speak with your legal and tax advisors for guidance regarding your particular situation.
Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA) Fortitude Investment Group is independent of CIS, CAM, and CIA.
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