At our December DIG Philly meeting, Fred Hubler revealed something most investors don't know: You can invest cash directly into Delaware Statutory Trusts—no 1031 exchange required. And for doctors, high earners, and anyone with $100,000 who wants real estate exposure, this changes everything.
Here's the surprising reality: Most DST providers either don't accept cash investments at all, or severely restrict them. The DST industry has traditionally focused almost exclusively on 1031 exchange money—investors selling properties and deferring capital gains taxes.
But as Hubler points out, "We're one of the few places in the country that can put cash in a DST. Most DSTs if they even offer it only will let 1031 money."
This creates a massive opportunity for a specific type of investor—particularly high-income professionals who want real estate exposure but don't have an existing property to exchange.
Picture a typical scenario: You're a physician earning $500,000+ annually. You're getting crushed on taxes. You know real estate offers tax advantages through depreciation and potential appreciation, but you have three problems:
Traditional DST investing was off the table because you couldn't get in without a 1031 exchange. Now you can.
Hubler frames the decision perfectly: "If you have $100,000 that wants to be in real estate, you can do what you want to do with $100,000."
Here are your options:
"You'll probably make more money doing it yourself."
Buy a small rental property. Manage it actively. Make the decisions. Control everything.
The reality:
"Or set it and forget it and pick a DST."
Invest that $100,000 into institutional-grade real estate managed by professionals with decades of experience.
The reality:
Here's where it gets even better: "If you're putting cash in, you can pick any DST in the world."
When you're investing cash (not doing a 1031 exchange), you have complete freedom to choose:
There are no tax constraints forcing you into specific deals.
By contrast, if you're doing a 1031 exchange, everything gets complicated: "If you have a 1031 deal, the combo of the DSTs have to meet the debt that you have or else it's taxable."
This is a critical technical requirement most investors don't understand. If you sell a property with debt, you need to replace that debt in your new purchase or face immediate taxation on the debt relief.
Example:
For 1031 exchanges, Hubler's job is to engineer the right combination of DSTs to meet your debt requirements while still selecting quality properties. "That's my job. We do the math and we can."
But with cash? You're free. Pick what you want.
Doctors, lawyers, executives, tech workers with W-2 income—people who:
Anyone who:
People who understand:
This is particularly powerful for W-2 high earners who can't access many traditional real estate tax benefits:
Depreciation passes through from the DST to you, potentially offsetting other passive income
Passive income diversification away from 100% W-2 dependence
Estate planning benefits through 1031 exchange chaining and step-up in basis at death
Capital gains treatment instead of ordinary income rates when properties eventually sell
For someone in the 37% federal bracket plus state taxes, these benefits can be substantial.
The key insight is this: You don't need to own a property to sell one in order to invest in DSTs. You can simply write a check and gain access to institutional real estate investing.
Most people think: "DSTs are for people doing 1031 exchanges."
Reality: "DSTs are for anyone who wants passive real estate income and has $100,000."
This opens the door to entire categories of investors who were previously excluded from the DST space simply because they didn't have an existing property to exchange.
Hubler's honest about it: "You'll probably make more money doing it yourself."
He's right. If you're willing to:
...you might generate higher returns than a professionally managed DST.
But here's the question nobody asks: What's the value of your time? What else could you be doing with those hours? And what's the probability you'll actually execute well versus "it might not land the way you want"?
For a doctor earning $250/hour in their actual profession, spending 20 hours per month managing a property isn't free—it's $5,000 per month in opportunity cost. That changes the math significantly.
Most real estate investing advice assumes you either:
But there's a massive category of investors who:
For these investors—particularly high-income professionals getting hammered on taxes—cash DST investing offers something rare: access to institutional-quality real estate with complete flexibility to choose whatever properties make sense.
You don't need to own a property to invest in real estate. You just need $100,000 and a clear understanding of whether you want to be in the real estate business or whether you want real estate to work for you.
Those are very different things.
Delaware Statutory Trusts require accredited investor status with minimum investments typically starting at $100,000. Not all DST sponsors accept cash investments; options vary by provider. This article is for educational purposes only. Always consult with qualified tax, legal, and financial professionals before making investment decisions.