Frequently Asked Questions Medalist DST Investment Platform
SECTION 1: FOR INVESTORS
What is a DST?
A Delaware Statutory Trust (DST) is a legal entity that holds title to real estate, allowing multiple investors to own fractional beneficial interests in institutional-grade properties. DSTs qualify as replacement property for 1031 exchanges, enabling investors to defer capital gains taxes while transitioning from active property ownership to passive real estate investment.
How does a DST qualify for a 1031 exchange?
DSTs are structured to comply with IRS Revenue Ruling 2004-86, which establishes requirements for DST interests to be treated as direct property ownership for 1031 exchange purposes. Medalist DSTs are designed to meet all IRS requirements for 1031 qualification.
What types of properties do Medalist DSTs hold?
We focus exclusively on single-tenant, net-leased properties with investment-grade tenants rated BBB+ or better by S&P. Examples include automotive service centers, healthcare facilities, essential retail, and other necessity-based businesses with long-term leases.
What does net lease mean?
In a net lease (often called NNN or triple-net), the tenant pays most or all property expenses including real estate taxes, insurance, and maintenance. This structure provides predictable income for investors with minimal landlord responsibilities.
Is a DST the same as owning property directly?
For tax purposes, yes. The IRS treats DST beneficial interests as direct ownership of real estate. However, DST investors are passive — you receive income without management responsibilities, but you also cannot make decisions about the property.
SECTION 2: 1031 EXCHANGE PROCESS
What are the 1031 exchange deadlines?
You have 45 days from your property sale closing to identify replacement property in writing. You must complete your exchange within 180 days of your sale closing. These deadlines are strict and cannot be extended for any reason.
Do I need a Qualified Intermediary?
Yes. A Qualified Intermediary (QI) must hold your sale proceeds. You cannot touch the funds directly or deposit them in your own account, or your 1031 exchange will be disqualified. Engage your QI before your property sale closes.
Can I invest only part of my proceeds in a DST?
Yes. You can invest a portion of your proceeds in a DST and use the remainder for another replacement property, another DST, or take cash (with taxes due on the cash portion).
Can I invest in multiple DSTs with one exchange?
Yes. Many investors split their proceeds across multiple DST offerings for diversification across properties, tenants, and geographic locations.
What if I can’t find a replacement property in time?
This is exactly why many investors choose DSTs. Unlike direct property purchases, DST interests are readily available and can be identified and closed within your 1031 deadlines without the complications of property negotiations, inspections, and financing.
I already have a Qualified Intermediary. Can I still invest?
Yes. Your existing QI can transfer funds directly to the DST at closing. We work with all qualified intermediaries.
SECTION 3: INVESTMENT DETAILS
Who can invest in a Medalist DST?
Accredited investors only, per SEC requirements. Generally this means $200,000 annual income ($300,000 joint with spouse) for the past two years, or $1 million net worth excluding your primary residence. A suitability review is required before investment.
What is the minimum investment?
Minimum investment details are provided in the offering materials upon qualification. Contact us to request current offering information.
How do I receive income from my DST investment?
Distributions are deposited directly to your bank account, typically on a monthly basis. The amount depends on property income after expenses and debt service.
Are distributions guaranteed?
No. Distributions depend on the tenant paying rent and are not guaranteed. However, Medalist focuses on investment-grade tenants with strong credit ratings to minimize this risk.
What fees are involved?
All fees are fully disclosed in the Private Placement Memorandum (PPM). Typical fees include acquisition fees, ongoing asset management fees, and disposition fees at sale. There are no hidden costs — review the PPM for complete fee disclosure.
Do I have any responsibilities as a DST investor?
No. DST investment is completely passive. Medalist handles all property management, tenant relations, accounting, and reporting. Your only responsibility is receiving distributions and annual tax documents.
Will I receive tax documents?
Yes. You will receive a Schedule K-1 annually for your tax reporting. DST ownership may create tax filing requirements in the state where the property is located.
SECTION 4: EXIT OPTIONS
What happens when the DST property sells?
When the property sells, typically after 5-7 years, you have several options for your proceeds. You can take cash, complete another 1031 exchange, hold for estate transfer, or potentially pursue a 721 UPREIT conversion.
What are my exit options?
Option 1 — Cash Out: Receive your proportionate share of sale proceeds. Capital gains taxes deferred from your original exchange become due.
Option 2 — 1031 Exchange Again: Roll proceeds into another DST or direct property to continue tax deferral indefinitely.
Option 3 — Estate Transfer: Hold your interests until death. Your heirs may receive a step-up in cost basis, potentially eliminating all deferred capital gains.
Option 4 — 721 UPREIT: Potential future opportunity to convert DST interests into REIT operating partnership units, continuing tax deferral with added diversification and liquidity options.*
*721 UPREIT is not guaranteed and is subject to REIT structure, approval, and offering terms.
How long is the typical hold period?
Approximately 5-7 years, depending on the offering. Specific projections are provided in each offering's Private Placement Memorandum.
Can I sell my DST interest early?
DST interests are illiquid investments with no public trading market. You should plan to hold for the full projected hold period. Early exit options are extremely limited.
What is a 721 UPREIT?
A 721 UPREIT is a tax-deferred exchange of real estate (or DST interests) into operating partnership units of a REIT, allowing investors to continue deferring capital gains while gaining portfolio diversification and potential access to liquidity. As part of Medalist's long-term DST platform strategy, we plan to offer DST investors a 721 UPREIT exit pathway into a NAV REIT, providing a potential long-term liquidity option beyond the DST holding period. This offering is not guaranteed.
SECTION 5: WHY MEDALIST
What makes Medalist different from other DST sponsors?
Most DST sponsors are private companies with limited transparency. Medalist Diversified is a NASDAQ-listed public company (ticker: MDRR), which means SEC reporting requirements, audited financial statements, and independent board oversight. We bring institutional-grade transparency to the DST marketplace.
What is FactRight?
FactRight is an independent third-party firm that provides due diligence reports on DST sponsors and offerings. Their reports analyze sponsor financials, track record, offering terms, and property fundamentals. Every Medalist DST offering includes a FactRight report for investor and advisor review.
How can I verify Medalist's financials?
As a public company, our SEC filings are freely available. Visit sec.gov and search for "MDRR" to access our quarterly 10-Q reports, annual 10-K reports, and other public filings. Our financials are audited by Cherry Bekaert LLP.
What is Medalist's investment criteria?
We exclusively target single-tenant, net-leased properties with tenants rated BBB+ or better by S&P. We prioritize credit quality and lease security over yield chasing. Our focus is on essential businesses in strong demographic markets.
How long has Medalist been in business?
Medalist was founded in 2015 and listed on NASDAQ in 2018. We currently manage a portfolio of 10 properties totaling approximately 782,000 square feet at 94% occupancy.
SECTION 6: RISKS
What are the main risks of DST investing?
DST investments involve significant risks including: illiquidity (no public market to sell), reliance on a single tenant, potential loss of principal, real estate market fluctuations, and no guarantee of distributions or projected returns. DSTs are suitable only for accredited investors who do not need liquidity. Review the PPM for complete risk disclosures.
What happens if the tenant stops paying rent?
If the tenant defaults, distributions to investors would be affected. This is why Medalist focuses exclusively on investment-grade tenants with strong credit ratings and long-term leases. However, no investment is without risk.
Is my investment guaranteed?
No. All real estate investments carry risk, including potential loss of principal. Past performance does not guarantee future results. Projected returns are estimates, not guarantees.
Can I lose money?
Yes. Like any real estate investment, you can lose some or all of your investment. Property values can decline, tenants can default, and market conditions can change. Only invest capital you can afford to hold long-term.
SECTION 7: FOR FINANCIAL PROFESIONALS
How does my firm establish a selling agreement with Medalist?
Medalist DST offerings are distributed through Realta Wealth (Member FINRA/SIPC), our broker-dealer of record. Your firm executes a selling agreement directly with Realta. The process typically takes 5–10 business days and includes a compliance review of your firm’s alternative investment policies, a signed selling agreement, and completion of Realta’s due diligence questionnaire. Contact us at Solutions@MedalistDST.com to initiate the process.
What types of firms can distribute Medalist DSTs?
We work with independent broker-dealers, registered investment advisors (RIAs), wirehouses, and hybrid advisory firms. If your firm has a platform for alternative investments or non-traded products, we can likely establish a relationship. There is no minimum firm size requirement.
What does Medalist’s compliance package include?
We provide a complete due diligence file for your compliance team, including: the Private Placement Memorandum (PPM), FactRight independent due diligence report, audited sponsor financial statements (publicly available via SEC filings), property appraisal and environmental reports, tenant credit analysis, offering term sheet, and sponsor background and organizational documents. Everything your compliance department needs to evaluate and approve the offering is delivered upfront.
How quickly can we get approved and start placing business?
Most firms complete the selling agreement and compliance review within 5–10 business days. Firms with existing alternative investment platforms and streamlined approval processes can often move faster. We work directly with your compliance team to answer questions and expedite approval.
Is there an existing network of firms already selling Medalist DSTs?
Yes. We have an active and growing network of broker-dealers and RIAs distributing our offerings. We are selectively expanding our distribution relationships and welcome new partnerships with firms committed to serving 1031 exchange investors.
SECTION 8: COMPENSATION & ECONOMICS
What is the commission structure for Medalist DST offerings?
Commission details are outlined in the selling agreement and PPM. Compensation is competitive with industry standards for DST and alternative investment placements. Contact us for specific terms, which may vary by offering and distribution channel.
Are there ongoing advisory fees or trailing compensation?
Fee structures are detailed in the offering documents and can accommodate both commission-based and fee-based advisory models. We work with your firm to ensure the compensation structure aligns with your business model and client agreements.
How and when are commissions paid?
Commissions are paid at closing through the broker-dealer of record, Realta Wealth. Payment is processed promptly upon receipt of cleared funds and completed subscription documents.
Does the fee structure support fee-based RIA models?
Yes. We understand the advisory landscape is shifting toward fee-based models. Our offering structure can accommodate fee-based arrangements where permitted by your firm’s compliance policies. Discuss specific options with our team.
SECTION 9: COMPLIANCE & SUITABILITY
What suitability standards does Medalist require?
All investors must be accredited per SEC Regulation D requirements and must complete a suitability questionnaire. We require that the investment is appropriate for the client’s financial situation, investment objectives, risk tolerance, and liquidity needs. Your firm’s suitability standards apply in addition to ours.
How does the investor qualification process work?
The process follows a clear sequence: the investor completes an accreditation acknowledgment and suitability questionnaire, the financial advisor reviews and signs off on suitability, the subscription documents are submitted to Realta for compliance review, and upon approval, funds are transferred from the Qualified Intermediary to escrow. We provide all forms and guide your team through each step.
How does Medalist handle KYC and AML compliance?
KYC and AML checks are performed as part of the subscription process through our broker-dealer of record, Realta Wealth, and our transfer agent, Great Lakes Fund Solutions. Investor identity verification, source of funds documentation, and OFAC screening are completed before any investment is accepted.
What documentation does my firm receive for our compliance file?
Your firm receives a complete compliance file including: executed subscription agreement, investor suitability questionnaire, accreditation verification, FactRight due diligence report, PPM with all supplements, and confirmation of KYC/AML clearance. All records are maintained by Realta and Great Lakes Fund Solutions and are available for audit upon request.
How does FactRight support our due diligence obligation?
FactRight provides an independent, third-party evaluation of the sponsor, the offering structure, property fundamentals, and financial projections. Their report covers sponsor background, balance sheet analysis, fee benchmarking, lease analysis, property valuation, and risk factors. Many broker-dealer compliance departments rely on FactRight as a key component of their alternative investment due diligence process.
SECTION 10: ADVISOR TECHNOLOGY & REPORTING
Is there an advisor portal to track client investments?
Yes. Our transfer agent provides a secure online portal where advisors can view client account details, track investment status, monitor distribution history, and access tax documents. Portal access is provided upon your first client closing.
What ongoing reporting do advisors receive?
Advisors receive quarterly asset management reports covering property performance, tenant updates, distribution summaries, and any material events. As a NASDAQ-listed company, our SEC filings also provide additional transparency into sponsor-level financials.
How are K-1 tax documents delivered?
Schedule K-1s are prepared annually and distributed to investors and their advisors through the transfer agent portal. We target delivery by March 15 each year to support timely tax filing.
Are advisors notified before investors on material events?
Yes. We prioritize advisor communication. Advisors receive advance notice of material events, property dispositions, distribution changes, and offering updates so they can proactively communicate with their clients.
SECTION 11: MARKETING & PRACTICE SUPPORT
Does Medalist provide co-brandable marketing materials?
Yes. We offer a suite of advisor-ready materials including offering summaries, one-page sales sheets, client-facing DST education pieces, and presentation decks. Materials can be customized with your firm’s branding where permitted by your compliance department.
Can Medalist present at advisor events or lunch-and-learns?
Absolutely. Our team is available for in-person or virtual presentations to your advisors, clients, or study groups. We tailor content to your audience, whether that’s a 1031 exchange overview for clients or a deep dive into offering structure for experienced alternative investment advisors.
Do you offer continuing education credits?
We are developing CE/CPE-eligible educational content on DST investing, 1031 exchanges, and alternative investment due diligence. Contact us for current availability and to schedule educational sessions for your team.
What kind of white-glove support do you provide?
Medalist provides dedicated support from initial client inquiry through closing and beyond. This includes help with 1031 exchange timeline management, coordination with the client’s Qualified Intermediary, subscription document preparation, closing logistics, and ongoing communication throughout the hold period. Your clients receive institutional-level service and you have a single point of contact for everything.
SECTION 12: OPERATIONAL PROCESS FROM INTEREST TO CLOSE
What does the process look like from client interest to closing?
The typical process follows six steps: (1) Initial consultation — the advisor or client contacts Medalist to discuss the client’s 1031 exchange situation and timeline. (2) Qualification — the client completes an accreditation acknowledgment and receives offering materials. (3) Suitability review — the advisor completes the suitability documentation and submits it with the subscription agreement. (4) Compliance approval — Realta reviews and approves the subscription. (5) Funding — the client’s Qualified Intermediary wires exchange funds to the escrow account at North Capital. (6) Closing — upon receipt of cleared funds and all documentation, the investor’s beneficial interest is issued, and a welcome package is delivered.
What is the typical timeline from subscription to close?
Most investments close within 5–10 business days from receipt of completed subscription documents and cleared funds. We can expedite when a client is approaching their 45-day identification or 180-day exchange deadline.
Who is the day-to-day contact for advisors?
Advisors work directly with the Medalist Sponsor Operations team. You’ll have a dedicated point of contact who manages your client relationships from onboarding through the life of the investment. Reach us at Solutions@MedalistDST.com or (949) 415-6633.
How do you handle clients approaching their 45-day deadline?
We specialize in serving time-sensitive 1031 exchange investors. DST interests can be identified and included on the client’s 45-day identification letter quickly, and our streamlined closing process is designed to accommodate tight exchange timelines. Contact us immediately if your client is under deadline pressure — we can move fast.
SECTION 13: GETTING STARTED
How do I learn more about current offerings?
Contact us to request offering materials. Investors will need to complete an accreditation acknowledgment before receiving detailed offering information. Financial advisors can request a full compliance and due diligence package.
What documents will I receive?
Upon qualification, you’ll receive access to the Private Placement Memorandum (PPM), subscription agreement, investor suitability questionnaire, property appraisal, environmental reports, and FactRight due diligence report.
How do I contact Medalist?
Email: Solutions@MedalistDST.com | Phone: (949) 415-6633 | Website: www.MedalistDST.com
I have more questions. Who can help?
Contact our team at Solutions@MedalistDST.com or call (949) 415-6633. We’re happy to answer questions and discuss whether a Medalist DST is appropriate for your situation or your clients.
IMPORTANT DISCLOSURES
This information is for educational purposes only and does not constitute an offer to sell or solicitation to buy any security. Offers are made only through the Private Placement Memorandum to accredited investors. DST investments are illiquid, involve significant risk including potential loss of principal, and are suitable only for investors who do not require liquidity. Consult your tax and legal advisors before investing. Securities offered through Realta Wealth, Member FINRA/SIPC.
Medalist Diversified (NASDAQ: MDRR) | P.O. Box 8436, Richmond, VA 23226
(949) 415-6633