Deya Sims slumped at her cluttered desk in her Atlanta talent agency office, headshots and contracts spilling over from her exploding roster of actors and musicians. Her 6-unit multifamily property in Suwanee, Georgia—once a savvy side hustle—had morphed into a relentless drain: leaky roofs, tenant squabbles, and midnight maintenance calls clashing with high-stakes client pitches. “At times this building feels like my brick-and-mortar child,” she muttered, rubbing her temples.
Her phone rang. It Hale, a real estate advisor for a friend she had recently reconnected with a networking/mixer event.
Hale: “Deya, you sound gassed. Juggling those tenants and your roster of A-listers taking its toll huh?”
Deya: “You said it. I mean the rents come in, but all the other things that come with that is killing me. Sometimes I just want out. But then the checks come in, and...”
Hale: “I get what you're saying. And a Delaware Statutory Trust may be right up your alley."
Deya: "A trust? I'm not sure estate planning is the solution to the problem I'm having."
Hale: Hale laughed. "No, no. It's not succession planning. Think of it as moving out of the driver's and getting in the back of the car.”
Deya: “Chauffeur driven... I like it."
Hale: “Pretty much. You sell to the Delaware Statutory Trust, and a professional trustee takes control—leasing, management, everything.”
Deya: "But then I have the taxes..."
Hale: "No. You defer the taxes. DST falls under Section 1031, the ‘like-kind’ exchange."
Deya: "DST... that's the trust thingy right?"
Hale: "Yeah."
Deya: “Hmm... interesting. But I don't think I'm ready to cash out plus I still have a mortgage on it."
Hale: “That's fine. The trust can refinance or pay off the debt at closing with a non-recourse loan—no personal liability. As for liquidity? You can sell around 90% to new investors and hold 10% for yourself. You're still in but without any day-to-day decision making... just passive income. The sponsors handle everything”
Deya: “So I keep a piece of the pie, hands off, and defer taxes? Uncle Sam is cool with that?”
Hale: “Yep. Revenue Ruling 2004-86 spells it out in plain IRS language."
Deya: "IRS language, you're hilarious."
Hale: "Want to be my agent?”
Deya: “Hold your horses." Deya said smiling. "And remind me why this DST thingy is better than just outsourcing property management?”
Hale: “A manager takes 8–10% of your rents, and you’re still calling the shots on major repairs, evictions, budget approvals, among other things. Still in the trenches. With a DST, you’re completely out. You sell most of your share, defer the taxes, and pros run the show full-time... your 10% grows quietly in the background.”
Deya: “Freeing up my time… I like that. Where would my proceeds go?”
Hale: “Into other DSTs—industrial, retail, you name it; property, market... it's as you see fit.”
Deya: “I'm in. Where do I sign?”
Three months on, the Suwanee asset was in its DST home, being cared for by pros—Deya’s was now a passive investor with a diversified dividend flow.
Atop her desk were now papers she wanted to deal with. Again, her phone rang—a director's office was calling.
Deya: “Deya Sims” she answered. Free at last to hustle where her heart was... she brandished a smile.
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