Tool & guide

DST Due Diligence: Source-Linked Diligence Binder

By Sequoia ResearchPublished Read as Markdown

Source-Linked Diligence Binder

Users organize documents, extracted facts, source pages, questions, and responses by review topic. The binder preserves verification status and makes the reasoning behind a conclusion traceable.

For an export, select Download in the tool, then Save file when it appears below. Your entries stay in your browser.

What Is This Article About?

This guide shows how to build a record of the evidence behind a DST review. The Source-Linked Diligence Binder connects each claim to a document, page, date, question, and response. It helps you keep track of what you have checked and what still needs work. A worked example shows how to handle two sources that seem to disagree.

Table of Contents

What the DST Due Diligence Binder Does

The binder is a local research log. You enter a fact or claim, name its source, and record where you found it. You can then add a question and the response you received. The tool keeps these items together so another reader can follow your work.

It does not read documents, pull facts from websites, or check whether a claim is true. You choose every review status. The tool counts entries and open items, but it does not give a sponsor rating or an investment score. A full binder can still contain weak evidence.

That distinction matters with private investments. The SEC notes that private placements can have less disclosure than registered offerings. It also says that offering documents are typically not reviewed by a regulator. A polished document is a source to examine, not proof that an outside authority has checked each statement. See the SEC's private-placement bulletin, updated September 21, 2026.

Use the binder to answer a narrow question: can you retrace the evidence behind this view? For example, “the lease has three years left” should lead to a lease date, term, and page. “The sponsor seems strong” is too broad to trace. Break it into specific claims about the team, resources, record, and written duties.

Set Up Your DST Research File

Start with one offering per binder. Use the full legal name in source titles so a familiar brand does not blur the identity of the investment. Keep your source files in a separate folder. The binder stores text and references; it does not store copies of PDFs, emails, or financial reports.

Name source files in a way that makes versions clear. For example, “Sample Trust PPM, September 4, 2026” is more useful than “final document.” A private placement memorandum, or PPM, describes an offering and its terms. The document's title alone does not show whether you have the latest version or all later changes.

Before entering facts, list the documents you expect to review. You might need the PPM, supplements, property reports, loan terms, leases, fee details, and prior results. The right set depends on the offering. This is a research plan you build for the case, not a universal list of required documents.

Record a missing item as an entry. Write the claim field as a request, such as “Need the current loan maturity and extension terms.” In the source field, write “Loan agreement not received.” Choose Open question. This keeps a gap visible without pretending that you have reviewed the missing material.

How to Enter Claims and Source Documents

Choose the review topic first. The available topics cover identity, sponsor, property, debt, fees, cash flow, reserves, exits, and exchange process. Use Other when none fits. A topic helps you find a record later; it does not change the standard of proof.

Write one main claim per entry. “The loan matures on September 30, 2031” is clear. An entry that also covers leverage, interest rates, fees, and cash reserves will be hard to update. Separate entries let you mark one point checked while leaving another open.

Name the document, then enter a page or section. If PDF page numbers differ from printed page numbers, record both. “PDF page 42; printed page 37; Loan Terms” gives the next reader a clear route. For a web page, use the heading that holds the relevant text.

Add a complete source link when one is available. The tool accepts HTTP and HTTPS links. It does not open the link to test its contents. A link that works today may change later, so keep an authorized copy of the source in your separate research folder when appropriate.

The source date and check date serve different jobs. The source date is when the document was issued or updated. The check date is when you reviewed it. Reading an old report today does not make its numbers current. If a web page has no date, leave the source date blank and explain that gap in the record.

Use the question field for the precise issue you need answered. “Please explain debt” is broad. “Is the 2033 date an option that requires lender consent?” is easier to answer. In the response field, record who replied, when they replied, and what supporting document they gave you.

Save the entry before you export. Text still sitting in the form is not part of the saved binder. When you edit a record, select Save Changes. Clear Form removes the unsaved form contents while leaving saved entries in place.

What Each Review Status Means

The five statuses describe your work. They are not ratings of the investment. Choose a label that matches the evidence you have now, then revise it as the record changes.

Unreviewed means the item is in the file but you have not completed your check. Use it for a claim copied from a summary before you open the cited source. It is also useful when you inherit notes from someone else.

Source checked by user means you have checked a source yourself. The tool requires a check date and either a page reference or a source link. This prevents an empty label, but it cannot judge your work. You may confirm that a report makes a claim without proving that the underlying claim is correct.

Open question means you need more information. State what is missing and who might have it. The response field can hold a partial answer while the status stays open. A reply that misses the main issue should not quietly close the record.

Conflicting evidence means the sources appear to differ. Explain the conflict rather than assuming one source is wrong. A change in date, scope, or definition may explain it. Keep both references visible while you seek an answer.

Answer recorded means someone has responded and you have entered that response. The tool requires response text. This label does not mean that the response is complete, correct, or supported. If the reply leaves a material question open, use Open question and explain what still needs work.

A checked source may still have an unanswered question. The open-items view includes that record when its question field has text and its response field is blank. This helps stop a source-check label from hiding unfinished work.

A Worked Example: Conflicting Loan Dates

Consider a hypothetical offering called Sample Property Trust. A sales summary lists a loan end date of September 30, 2033. A loan summary lists a maturity date of September 30, 2031, with a possible two-year extension. These are invented facts used to show the workflow.

Create a Debt entry for the 2031 date. Name the loan summary and its exact section. Enter its document date and the date you read it. In the question field, ask whether the 2033 date assumes an extension and what conditions apply.

Create a second entry for the sales summary. Record its 2033 date and source page. Mark both entries Conflicting evidence, and cross-reference their record IDs in the question or response field. You now have two traceable claims, rather than one blended date that hides the issue.

Suppose the issuer replies that 2031 is the scheduled maturity. It says 2033 is the latest date if the borrower meets the extension terms. Record the reply with the sender's role and date. Ask for the relevant signed loan section if you have not received it.

An email can explain the mismatch, but its explanation may still need document support. Keep the status Open question if that support is missing. Once you review the cited section, write what you confirmed and which conditions remain. The proper result may be a clear statement of conditional dates, not a single “correct” date.

This example also shows why a binder count is not a safety measure. Two entries are useful because the dates differ. Ten repeated copies of the same sales claim would add volume without adding evidence. Track the issue to its source and keep the record as simple as the facts allow.

Use the Binder for Sponsor and Property Research

Separate sponsor claims from property claims. A sponsor's record of prior work does not tell you whether a tenant can pay rent. A strong property report does not show that every sponsor affiliate has the funds or duties you assume it has.

For sponsor research, one entry might ask which entity is required to provide a service. Another might trace a past-performance table to its full set of deals and cash flows. Record whether a number comes from the sponsor or from another source. The source name should make that relationship clear.

For property research, focus entries on facts that can affect the investment case. Examples include the lease term, major tenant exposure, planned repairs, reserve use, and the date of the rent roll. Add the measurement period. “Occupancy is 94%” needs both a date and a definition before it can support a useful conclusion.

For fees, record the amount or rate, what it applies to, when it is paid, and who receives it. If two documents use the same fee name differently, open a question. The binder does not calculate fees, so keep any math in a separate worksheet and link the result to its source terms.

FINRA's guidance for member firms discusses reasonable investigation of private offerings and the need to follow up on red flags. That is context for the value of a documented process; this personal research tool does not carry out a broker's duties. See FINRA Regulatory Notice 23-08, May 9, 2023.

Read the Open Questions View

Use Show Entries to select a topic or view open and conflicting items. The summary shows all saved entries, including those outside the current filter. Its counts help you plan work; they do not measure how safe an investment is.

The open count includes records labeled Open question or Conflicting evidence. It also includes records with a question but no response. An Answer recorded entry can still deserve more work, so use its status carefully. The tool cannot infer whether a written reply actually resolves a concern.

Review the list by consequence. A missing link to a source you already hold is different from an unexplained cash shortfall. In the question text, state what depends on the answer. For example: “Need this reserve figure before testing whether repairs can be funded.” That makes the next step clear without adding an arbitrary score.

A low open count can be misleading if you never entered the hard questions. Before reaching a conclusion, check whether the key topics have useful evidence. The binder gives you a place to organize judgment. It cannot supply the judgment itself.

Save, Export, and Restore Your Research

The tool keeps entries in the current page's memory. Reloading or closing the page clears them. There is no account, automatic backup, or shared workspace. Export at the end of each work session and before you leave the page.

Export JSON creates a file that this tool can restore. JSON is a structured text format that holds the entries and their fields. Keep that file with your source documents. Add a date to the downloaded filename if you want a series of saved versions.

Export Text Report creates a readable Markdown file. It groups entries by topic and includes claims, sources, dates, questions, responses, and statuses. You can open it in a text editor or use it to prepare a discussion. Both exports include all saved entries, even when the page is showing a filtered view.

Restore a JSON Export reads a file from your device. It replaces the binder on the page; it does not merge two binders. Export the current binder first if you need to keep it. The restore checks the file format, fields, dates, and record IDs. These checks protect the record's structure, not the truth of its contents. Each binder can hold up to 1,000 entries within a 5 MB export. If an addition or edit would exceed either limit, the tool leaves the saved entries unchanged.

The tool does not send your entries over the network. Source links open their outside websites when you click them. Keep private documents and sensitive notes within the access limits that apply to them. An exported report can contain the full text you entered, so review its contents before sharing it.

Keep the Record Useful After a Decision

Save the reasoning that mattered to your decision. An export should show which claims you accepted, which assumptions you used, and which questions remained open. That record can help you compare later reports with what you understood at the time.

When new evidence arrives, record its date and explain what changed. Do not turn an earlier estimate into a historical fact by replacing its wording without context. You can keep a separate entry for the new figure and refer back to the earlier record ID.

The binder is most useful when it is selective. Keep the entries that explain the investment case and its open issues. Remove accidental duplicates, but preserve meaningful differences in sources or dates. Export a dated copy before a major revision so you can retrace the earlier view if needed.

Confirm a Restore Without Losing Current Work

After you choose a valid JSON file, the tool shows a confirmation panel. It reports how many entries will be restored and warns that restoring replaces saved rows and clears any unfinished entry form. Choose Confirm restore to apply the file, or Cancel restore to keep both the binder and form unchanged.

Editing the form, saving, clearing, editing a saved row, or removing a row cancels a pending restore. Choose the file again when ready. This also prevents a slow file read from replacing newer work. A file with invalid data is rejected before this confirmation step.

FAQ

Does the tool verify a DST investment?

No. It organizes user-entered research. Source checked by user is your label, and the tool does not inspect the source. It offers no investment approval, sponsor ranking, or guarantee that your review is complete.

Can I upload a PPM for automatic review?

No. The current tool does not read PDFs or extract facts. You enter the relevant claim and its page or section yourself. Keep the PPM and other source files in a separate folder that you can refer to later.

What if a source has no publication date?

Leave the source date blank and note that the date is unknown. Record your own check date separately. The summary counts missing source dates so you can revisit them, but a missing date alone does not prove that a source is wrong.

Can I restore the text report?

Use the JSON export to restore your work. The text report is designed for reading and discussion. It is not the restore format, so keep the JSON file even if you mostly work from the readable report.

Does a response close an open question?

Only you can decide whether it does. Answer recorded says that a reply exists. If the reply lacks support or answers only part of the question, leave the record Open question and explain what is still missing.

Can I use one binder for several offerings?

The tool can hold entries with different source names, but one offering per binder is easier to follow. Separate files reduce the chance of applying one trust's loan, fee, or property facts to another trust with a similar name.

About Sequoia Research

Sequoia Research, LLC provides independent research on DSTs and other real estate investment offerings. This educational library explains research methods, source quality, and practical questions investors can use when reviewing investment materials.

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