Canonical page: https://sequoia-research.com/writing/delaware-statutory-trust-pros-and-cons-shared-owner-priorities-comparator Author: Sequoia Research Published: 2026-10-17T01:42:12.375Z Updated: 2026-10-17T01:42:12.375Z Interactive tool: https://sequoia-research.com/writing/delaware-statutory-trust-pros-and-cons-shared-owner-priorities-comparator#research-tool # Delaware Statutory Trust Pros and Cons: Shared-Owner Priorities Comparator ## What Is This Article About? This guide explains a tool that helps co-owners compare what they want from a DST investment. Each person rates five priorities and can add a personal requirement or open question. The tool shows matching ratings, different ratings, and missing answers, then prepares questions for a shared discussion. It helps people describe their needs without treating a group average as an investment decision. ## Table of Contents - [What the Shared-Owner Tool Compares](#what-the-shared-owner-tool-compares) - [Enter Each Owner's Priorities](#enter-each-owners-priorities) - [Understand the Five DST Planning Topics](#understand-the-five-dst-planning-topics) - [Read Agreement, Differences, and Missing Answers](#read-agreement-differences-and-missing-answers) - [Work Through the Fictional Co-Owner Example](#work-through-the-fictional-co-owner-example) - [Turn Ratings Into Specific Investment Questions](#turn-ratings-into-specific-investment-questions) - [Keep Personal Requirements Visible](#keep-personal-requirements-visible) - [Use the Comparison With Actual DST Documents](#use-the-comparison-with-actual-dst-documents) - [Save and Revisit the Conversation](#save-and-revisit-the-conversation) - [Know the Tool's Limits](#know-the-tools-limits) - [Frequently Asked Questions](#frequently-asked-questions) ## What the Shared-Owner Tool Compares The comparator records how important five topics are to each person: income, control, liquidity, reporting, and future flexibility. It accepts two to six participants. They may be current co-owners or people discussing a possible shared investment. The form does not establish that they legally own anything together. Use a rating from 1 to 5 for each topic. A 1 means little importance, a 2 some importance, a 3 moderate importance, a 4 high importance, and a 5 very high importance. Leave a topic unanswered if you need more thought or information. An unanswered field stays separate from the lowest rating. These are importance ratings. They are not judgments about a sponsor, a property, or a particular offering. A person who marks income as 5 is saying that income matters greatly. They are not saying that a DST can provide the income they need. The tool does not add the ratings into a total or declare that the owners are compatible. It presents each topic separately and generates questions. That approach keeps a serious cash need from disappearing into an average of otherwise similar preferences. FINRA distinguishes willingness to take risk from the ability to bear it. It also points to spending needs and reliance on invested funds. The comparator helps begin that conversation, but it does not measure either person's full risk tolerance. See [FINRA's Know Your Risk Tolerance](https://syndication.finra.org/content/know-your-risk-tolerance). ## Enter Each Owner's Priorities Give each participant a different label. A nickname or short name is enough. Labels can contain up to 60 characters. Do not enter account numbers, tax identifiers, or other private details that the comparison does not need. Have each person choose their own ratings before trying to agree. The page is a shared form: it does not hide one person's entries from the others. If seeing earlier answers could influence someone, discuss the five definitions first and write initial choices separately. Then enter those choices without changing them to make the table look more consistent. Use the optional note for a concrete requirement or question. The limit is 600 characters per person. “I may need cash for a move in two years” says more than “I like flexibility.” The tool displays notes as entered. It does not read them to determine whether an investment satisfies the stated need. Select **Compare priorities** after the entries are ready. You can add participants up to the limit of six. Removing a participant requires an in-page confirmation. Clearing the entries or loading the example also requires confirmation, since either action replaces existing work. Any edit clears the old result and disables its export. Run the comparison again to see the current entries. This prevents a changed rating from sitting next to an old summary that appears to describe it. ## Understand the Five DST Planning Topics Use the same definitions when you compare answers. Otherwise, two people may use one number to describe different ideas. The tool includes a brief definition beside each rating, and the questions below can help make that definition personal. **Income** means the importance of cash payments to your spending plan. Ask whether those payments would cover basic bills, optional spending, or a goal that can wait. Identify the amount and timing outside the tool. A high rating does not show how much cash is needed or whether the hoped-for payment is realistic. **Control** means the importance of keeping a say in investment decisions. One person may want to avoid managing tenants but still expect a personal right to choose an exit date. Name the decisions that matter. General comfort with delegation does not establish acceptance of every term in an investment agreement. **Liquidity** means the importance of access to invested money when needed. The SEC explains that private securities can be difficult to resell and may have to be held indefinitely. A proposed property sale date does not create personal access to cash on that date. See the [SEC private placement bulletin](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/private-placements-under-regulation-d-updated-investor-bulletin). **Reporting** means the importance of information and service. Discuss report timing, detail, format, and access to a contact who can answer questions. A person may give reporting a high rating because they need clear tax records. Another may want frequent property updates. The same score can conceal different service needs. **Future flexibility** means the importance of adapting ownership to later changes. Examples include estate needs, a family change, or a possible transfer. It overlaps with liquidity in some situations, but can also concern who holds an interest and who handles its records. Ask which future change matters before deciding what evidence would answer the question. ## Read Agreement, Differences, and Missing Answers Each topic receives one of three labels. **Same rating** means every participant answered and chose the same number. **Different ratings** means everyone answered but at least two numbers differ. **Incomplete** means at least one person left that topic unanswered. The table shows the lowest and highest answered ratings. It also reports how many people answered. If at least two people answered, the spread is the highest number minus the lowest number. With fewer than two answers, the tool says that two answers are needed for a spread. For example, ratings of 5 and 2 produce a spread of three rating steps. That tells you where to ask about the difference. It does not mean that one person values the topic two and a half times as much. The scale gives ordered choices, not measured units of need. A spread of zero can appear on an incomplete topic. Suppose two people choose 4 and a third leaves the field unanswered. The answered ratings match, but the group has not completed that topic. The tool preserves the **Incomplete** label and names the person whose answer is missing. The counts above the table summarize topics, not people or legal votes. Two topics with matching ratings out of five are simply two topics with matching ratings. The tool does not turn that count into a percentage of compatibility or a recommendation to proceed. Read the personal notes after the table. They may reveal a requirement that the five ratings do not capture. A person can choose the same numbers as everyone else while having a different deadline, budget, or concern. ## Work Through the Fictional Co-Owner Example The example uses two invented people, Alex and Blair. It is a demonstration of the tool, not a model of the right priorities for DST owners. Their entries are: | Topic | Alex | Blair | Result | | --- | ---: | ---: | --- | | Income | 5 | 5 | Same rating; spread 0 | | Control | 2 | 4 | Different ratings; spread 2 | | Liquidity | 5 | 2 | Different ratings; spread 3 | | Reporting | 4 | 4 | Same rating; spread 0 | | Future flexibility | 3 | Unanswered | Incomplete; only one answer | The summary shows two topics with the same rating, two with different ratings, and one incomplete topic. There is no overall score. Future flexibility remains open even though Alex entered a number. Alex's note says a move may require cash in two years. Blair's note asks how a future ownership transfer would work. Those notes help explain the ratings. They also point to different research tasks: cash access for a planned expense and the process for changing ownership. Start with liquidity because the difference is large and Alex has named a possible cash need. Ask Alex about the amount and whether other funds can cover it. Ask Blair why liquidity matters less. The aim is to understand the facts behind both answers, not to persuade Alex to move from 5 to 2. Then examine the matching income ratings. Alex may need payments for current bills, while Blair may see them as extra savings. Both could honestly choose 5. The matching number is a reason to compare definitions, not evidence that their cash plans are the same. Finally, let Blair explain the unanswered flexibility item. A missing answer may mean the term is unclear or that a relevant document has not been read. It is not a middle rating and does not mean Blair is unconcerned. The generated question asks what information or reflection is needed before choosing an answer. ## Turn Ratings Into Specific Investment Questions The tool generates two prompts for each topic. One responds to the rating pattern. It asks people to explain a difference, confirm the meaning of matching numbers, or address missing answers. The other asks about the real planning issue behind that topic. Use those prompts to prepare a short agenda. For income, define the cash amount and timing each person needs. For control, name the decisions each wants to retain. For liquidity, describe when cash might be needed and what other source could meet that need. For reporting, write down the actual service expected. A phrase such as “good communication” is hard to test. “A dated report that explains a payment change” gives the discussion a more concrete subject. Ask who provides the information and whether that commitment is documented. For future flexibility, name one plausible event at a time. A transfer after death and a voluntary sale during life can raise different questions. The comparator does not determine the permitted process. It helps you frame a request that the issuer and your advisers can answer. Record the response outside the tool or in a revised note. Distinguish a documented term from an estimate or an unresolved question. If a meeting produces a new assumption, label it as such. Agreement among owners cannot turn an assumption into a contractual right. ## Keep Personal Requirements Visible Some needs should not be averaged away. A participant might need access to a certain amount of cash by a fixed date. Another might be unwilling to accept a particular loss. The importance scale alone cannot establish whether that need is firm, negotiable, or based on an incorrect understanding. Put the requirement in plain language. Then ask what evidence would show whether the proposed investment and the rest of the person's finances can meet it. If the answer is unknown, keep it open. Changing the rating to reduce conflict does not solve the underlying question. Likewise, a low rating does not waive a person's rights or excuse missing work. Someone who marks reporting as 1 still needs to understand the investment. Someone who marks control as 1 has not legally approved every decision another person might make. The tool gives every participant a separate displayed row of answers, regardless of the amount they may invest. That is a conversation design choice. It is not a statement about ownership percentages, signing authority, voting rights, or how a legal dispute should be resolved. If the discussion becomes a question about who can act, consult the relevant agreements and legal adviser. Keep the ratings available as a record of preferences. Do not use them as a substitute for consent documents or instructions to a financial firm. ## Use the Comparison With Actual DST Documents Once the group has clearer questions, compare them with the actual offering terms. The PPM, trust agreement, loan information, reports, and service documents may answer different parts of the discussion. Ask the professional handling the matter to identify the relevant source and its limits. The IRS ruling commonly cited for DST exchanges addresses a particular arrangement and requires the other section 1031 conditions to be met. Shared enthusiasm does not establish tax qualification. Review the structure and transaction separately with qualified advisers. See [Revenue Ruling 2004-86](https://www.irs.gov/pub/irs-drop/rr-04-86.pdf). The comparator also does not complete a broker's or adviser's review. FINRA's private placement guidance discusses customer-specific duties and the information needed for recommendations in its member-firm context. A short priority table does not replace that process. See [FINRA Regulatory Notice 23-08](https://www.finra.org/rules-guidance/notices/23-08). Use the output to make a meeting more specific. Bring the questions, the factual needs behind them, and the relevant documents. Leave room for the professional to identify concerns that the five-topic form does not ask about. The form is a starting agenda, not a complete investment profile. ## Save and Revisit the Conversation After a successful comparison, select the JSON export button to prepare a file with the current entries and results. It includes all participant labels, ratings, notes, questions, and a generation time. Keep it private and share it only as the participants intend. The tool does not send the entries to a sponsor, broker, or adviser. It does not create an account or store the form for a later visit. Refreshing or leaving the page may lose the entries. There is no import feature, so an exported file is a record to read, not a way to restore the form automatically. When circumstances change, prepare a new comparison and keep its context clear. A new cash need can explain a changed rating. A newly understood term can resolve an unanswered item. The export time records when the file was generated; it does not prove that the underlying investment documents were current then. ## Know the Tool's Limits The result relies entirely on what people enter. It cannot verify that they answered independently or understood the scale. It does not evaluate notes, check sources, compare offerings, or model cash flows. Matching priorities can still be shared priorities for an unsuitable investment. There is no validated risk score, compatibility threshold, or suggested allocation. No rating pattern means “buy,” “sell,” or “hold.” Use the tool to find questions worth resolving and preserve differences that matter. The eventual decision requires more facts than these five ratings provide. ## Frequently Asked Questions ### Is This a DST Suitability Test? No. It compares stated importance across five topics. It does not assess wealth, income, loss capacity, eligibility, tax facts, or an offering's terms. The output can help organize a discussion with professionals, but it cannot establish that a DST fits any participant. ### Should Every Owner Choose the Same Ratings? No. Differences are useful information. Ask what need, experience, or assumption explains each answer. Do not change a number solely to create agreement. Even matching ratings need discussion because two people may attach different meanings to the same topic. ### What Does an Unanswered Topic Do? It makes that topic incomplete. The tool shows any ratings that were entered but does not replace the missing answer with zero or a middle value. It names the participants whose answers are missing and asks what they need before choosing a rating. ### Is a Three-Step Spread a Serious Conflict? It is a visible difference on this scale, not a measured level of conflict. The underlying facts matter more. A one-step difference can hide a firm cash deadline, while a larger spread can reflect different definitions. Use the question prompts and personal notes to learn why. ### Can I Use It With More Than Two Owners? Yes, up to six participants. Each needs a different label. A topic receives the same-rating label only when everyone has answered and all numbers match. The tool does not weight answers by investment amount or determine anyone's legal voting rights. ### Are the Entries Private From Other Participants? No. Anyone viewing the shared page can see the entries. Agree on how to record independent first answers before entering them. The tool itself does not submit or automatically save the data. The exported file includes all entries, so handle it with the same care as your planning notes. ## About Sequoia Research Sequoia Research, LLC provides independent research on DSTs and other real estate investment offerings. This tool supports educational discussions about investment needs and evidence. It does not recommend an investment or determine legal rights. ## Sources - [FINRA, Know Your Risk Tolerance](https://syndication.finra.org/content/know-your-risk-tolerance) — October 9, 2024; official FINRA syndication version. - [SEC, Private Placements Under Regulation D](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/private-placements-under-regulation-d-updated-investor-bulletin) — originally August 17, 2022; updated September 21, 2026. - [IRS, Revenue Ruling 2004-86](https://www.irs.gov/pub/irs-drop/rr-04-86.pdf) — 2004; foundational conditional DST ruling. - [FINRA, Regulatory Notice 23-08](https://www.finra.org/rules-guidance/notices/23-08) — May 9, 2023; member-firm investigation and recommendation duties. ## Related Reading and Tools - [Delaware Statutory Trust Pros and Cons: A Practical Guide for Retiring Landlords](https://sequoia-research.com/writing/delaware-statutory-trust-pros-and-cons-a-practical-guide-for-retiring-landlords) - [Delaware Statutory Trust Pros and Cons: What You Gain—and Give Up—With Passive Ownership](https://sequoia-research.com/writing/delaware-statutory-trust-pros-and-cons-what-you-gain-and-give-up-with-passive-ownership) - [Are DST Investments Safe in 2026? What Investors Should Understand About Risk](https://sequoia-research.com/writing/are-dst-investments-safe-in-2026-what-investors-should-understand-about-risk)