--- title: "DST vs. Direct Ownership: Which Is the Better 1031 Exchange Replacement Property For Your Situation?" description: Both DST and Direct Ownership structures qualify as like-kind replacement property under IRS rules & both can fully defer capital gains taxes. image: https://blog.fgg1031.com/hubfs/images/blog/Direct%20Ownership%20vs.%20a%20Delaware%20Statutory%20Trust%20(DST)/Direct%20Ownership%20vs.%20a%20Delaware%20Statutory%20Trust%20(DST).jpeg --- [info@firstguardiangroup.com](mailto:) [(866)398-1031](tel:(866)398-1031) [![fgg](https://blog.fgg1031.com/hubfs/FirstGuardianGroup_2022/fgg.png)](https://brokercheck.finra.org/individual/summary/6470002) [![fgg-871923](https://blog.fgg1031.com/hubfs/FirstGuardianGroup_2023/fgg-871923.png)](https://www.bbb.org/us/ca/san-jose/profile/commercial-real-estate/first-guardian-group-1216-887513) [![logo](https://blog.fgg1031.com/hs-fs/hubfs/FirstGuardianGroup_2022/logo.png?width=175&height=56&name=logo.png "logo")](http://fgg1031.com) - [Home](https://fgg1031.com/) - [About Us](https://fgg1031.com/about-us/) - [Current Offerings](https://fgg1031.com/property-listings-directory/) - [Resource Center](https://fgg1031.com/resource-center/) - [Glossary](https://fgg1031.com/glossary/) - [Accommodators](https://fgg1031.com/accommodators/) - [FAQ](https://fgg1031.com/faqs/) - [Tax eBook](https://pages.fgg1031.com/resources/real-estate-tax-deferral-strategies-ebook) - [Real Estate eBook](https://pages.fgg1031.com/real-estate-investing-in-the-new-era2) - [QI eBook](https://pages.fgg1031.com/resources/qualifiedintermediary/ebook) - [Tax Calculator](https://fgg1031.com/tax-calculator/) - [Newsroom](https://fgg1031.com/newsroom/) - [Blog](https://blog.fgg1031.com/blog) - [Events](https://fgg1031.com/events/) - [Contact Us](https://fgg1031.com/contact/) ![search-interface-symbol](https://blog.fgg1031.com/hubfs/FirstGuardianGroup_2022/search-interface-symbol.png) ![loader](https://f.hubspotusercontent-eu1.net/hubfs/24949188/Business%20and%20Finance/global/22.gif) ![close](https://blog.fgg1031.com/hubfs/FirstGuardianGroup_2022/close.png) From Pages From Blog Pages Load More Load More **Sorry, we couldn't find a match for  "".** Check your spelling or try a related search term. 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By [Paul Getty](https://blog.fgg1031.com/blog/author/paul-getty) When completing a 1031 exchange, investors who have sold a rental or commercial property face a fundamental decision: buy a replacement property outright through direct ownership, or invest passively through a Delaware Statutory Trust (DST). Both structures qualify as like-kind replacement property under IRS rules, both can fully defer capital gains taxes, and both offer access to commercial real estate. What separates them is everything else — control, management responsibility, capital requirements, diversification, and what the investment actually demands of you over a five-to-ten-year hold period. The right answer depends almost entirely on where you are in your investment life and what you want real estate to do for you from here. #### **What Is the Core Difference Between Direct Ownership and a DST?** Direct ownership means acquiring title to a commercial property — an apartment building, retail center, industrial asset, or similar — and taking on full responsibility for its management, financing, and eventual sale. A Delaware Statutory Trust is a legal entity that holds title to one or more income-producing properties and allows multiple investors to own fractional interests in those assets passively, with no management responsibilities. Both structures can serve as qualifying replacement properties in a 1031 exchange. The IRS confirmed in Revenue Ruling 2004-86 that DST interests constitute real property interests eligible for like-kind exchange treatment, which is what made DSTs a mainstream 1031 tool. The practical difference is that direct ownership keeps the investor in the operator seat, while a DST moves them entirely into the passenger seat. | **Factor** | **Direct Ownership** | **DST** | | --- | --- | --- | | Management responsibility | Full — investor manages or hires management | None — sponsor manages all operations | | Control over decisions | Complete | None — decisions made by sponsor | | Minimum investment | Typically $500,000+ | Often $50,000–$100,000 | | Diversification | Single asset concentration | Fractional ownership across one or more properties | | Financing | Investor arranges own debt | Pre-arranged institutional financing | | Time to close | Weeks to months | Days to weeks | | Liquidity | Saleable when investor chooses | Illiquid — no secondary market | | 1031 exchange eligible | Yes | Yes | **Key Point: Both direct ownership and DSTs qualify as 1031 exchange replacement properties — the decision turns on how much control, responsibility, and capital the investor wants to commit.** #### **What Are the Advantages of Direct Ownership in a 1031 Exchange?** Direct ownership has genuine advantages for investors who want control over their real estate and have the capacity to exercise it. For experienced operators, the ability to make decisions about tenants, leases, capital improvements, and disposition timing can meaningfully affect long-term returns in ways that a passive structure simply cannot replicate. The tax advantages of direct ownership are also fully available and in some respects more flexible. Investors can pursue cost segregation studies to accelerate depreciation, select their own financing structures to optimize interest deductions, and time a sale or subsequent exchange according to their own tax planning calendar rather than a sponsor's predetermined hold period. For investors with significant real estate expertise and an active management team already in place, direct ownership allows that expertise to generate any potential returns directly rather than delegating to a third party. Appreciation potential is a genuine strength of direct ownership as well. A well-located commercial property acquired at the right price and managed effectively has historically been one of the most reliable long-term wealth-building vehicles available. Investors who identify opportunities in growing markets, improve properties through capital investment, or reposition assets to higher uses may be able to generate returns that a passively managed DST with predetermined underwriting simply cannot match. **Key Point: Direct ownership rewards investors who have genuine operational expertise and the capacity to actively manage their investment — those advantages are real but require real involvement to capture.** #### **What Are the Limitations of Direct Ownership That DST Investors Are Trying to Escape?** The limitations of direct ownership are not abstract — they are the reason many experienced investors choose to exchange into a DST rather than buying another property outright. The most common is management fatigue. Investors who have spent years dealing with tenant issues, maintenance emergencies, lease negotiations, and property management oversight often reach a point where the active demands of ownership no longer match their stage of life or their priorities. Capital requirements represent a second meaningful constraint. Replacing a sold property with a single direct ownership asset typically requires committing the entire exchange proceeds to one property, creating concentration risk that can be difficult to avoid given 1031 reinvestment requirements. If the replacement property underperforms — through tenant default, market softening, or unexpected capital needs — the entire deferred gain is exposed to that single outcome. Financing presents a third challenge that has become more acute in recent years. Obtaining commercial debt at competitive terms requires creditworthiness, banking relationships, and time — none of which are always available within the 180-day exchange window. DSTs, by contrast, typically come with institutional financing already in place, which removes the financing risk from the equation entirely and can be especially valuable for investors whose exchange timeline is compressed. **Key Point: Management burden, capital concentration, and financing complexity are the three most common reasons investors at or near retirement choose DSTs over direct ownership replacement properties.** #### **What Are the Advantages of a DST as a 1031 Replacement Property?** A DST is a passive investment by design, and for investors who want to defer taxes without acquiring new management responsibilities, that passivity is the primary appeal. Once the investment is made, the sponsor handles all property management, tenant relations, maintenance, insurance, reporting, and eventual disposition. The investor has the potential to receive periodic distributions and annual tax reporting without any operational involvement. The accessibility of DSTs relative to direct ownership is also a meaningful practical advantage within a 1031 exchange. With minimum investments often starting at $50,000 to $100,000, investors can spread exchange proceeds across multiple DST offerings in different asset classes and geographic markets — achieving a level of diversification that a single direct ownership acquisition cannot provide. For investors exchanging out of a single concentrated property, this is one of the most effective ways to strive to mitigate portfolio risk within the structure of the exchange. The speed of DST transactions is particularly valuable under 1031 exchange time pressure. Because DSTs are pre-structured offerings with completed due diligence packages, investors can identify, evaluate, and close on a DST interest in a matter of days rather than weeks or months. For investors who are approaching their 45-day identification deadline or their 180-day close deadline, the ability to complete an exchange through a DST without the contingencies and delays of a conventional property transaction can be the difference between a completed exchange and a failed one. **Key Point: DSTs offer passive income potential, built-in diversification, pre-arranged financing, and the speed to close within compressed 1031 exchange timelines — advantages that direct ownership cannot match.** #### **What Are the Limitations of DSTs That Investors Should Understand Before Committing?** DSTs are illiquid securities. There is no secondary market for DST interests, and investors should expect to hold their position for the full target hold period — typically five to seven years — regardless of changes in their personal financial situation or in market conditions. This is not a theoretical limitation; it is a practical reality that every investor should internalize before committing exchange proceeds to a DST structure. The absence of control is the other significant trade-off. When an investor places capital into a DST, all operational and strategic decisions — tenant selection, lease renewals, capital improvements, refinancing, and sale timing — rest entirely with the sponsor. An investor who believes the property could be managed differently or sold at a more favorable time has no mechanism to act on that view. For investors accustomed to direct ownership, this loss of control can be psychologically difficult as well as financially consequential if the sponsor's decisions do not align with what the investor would have chosen independently. Fee structures also warrant scrutiny. DSTs carry acquisition fees, asset management fees, and disposition fees that reduce net returns relative to gross projections. These fees are disclosed in the Private Placement Memorandum and must be evaluated alongside yield projections to understand what investors have the potential to actually receive, not just what is advertised. An experienced DST advisor can walk through the full fee structure of any offering and help investors compare possible net returns across options. **Key Point: Illiquidity, loss of control, and cumulative fees are the three most significant limitations of DST investing — all three should be clearly understood before capital is committed.** #### **How Do Direct Ownership and DSTs Compare Specifically Within a 1031 Exchange?** The 1031 exchange context adds specific considerations that are worth addressing directly, since the exchange timeline and reinvestment requirements create pressures that do not exist in a standard real estate purchase. The 45-day identification deadline is the first pressure point. Identifying a suitable direct ownership replacement property, completing initial due diligence, and getting a signed purchase agreement in place within 45 days of a sale close is achievable but not always comfortable. DSTs can be identified and effectively reserved within days, which gives investors using a mixed strategy — DST for a portion of proceeds, direct ownership for the remainder — more time to properly evaluate the direct ownership target without jeopardizing the exchange. Debt replacement is the second consideration. To achieve full tax deferral, the replacement property must carry debt equal to or greater than the debt on the relinquished property, or the investor must add outside cash to make up the difference. Direct ownership requires the investor to arrange that financing independently, which takes time and is subject to lender approval. Most DSTs already carry pre-arranged institutional debt, which can satisfy the debt replacement requirement without the investor needing to qualify for a new loan. Value matching is the third. The replacement property must be of equal or greater value than the relinquished property to fully defer taxes. When a single direct ownership acquisition falls slightly short of that threshold, the shortfall becomes taxable boot. Spreading proceeds across a combination of direct ownership and one or more DSTs gives investors more precision in matching the required reinvestment amount. **Key Point: DSTs can complement a direct ownership strategy within a 1031 exchange by addressing identification timing, debt replacement, and value-matching requirements that direct acquisition alone may not satisfy cleanly.** #### **Which Option Is Right for Your 1031 Exchange?** There is no universally correct answer, and the honest response is that the right structure depends on where the investor is in their real estate journey and what they want from the next chapter of it. The following framework covers the most common decision points: Direct ownership is likely the better fit if the investor: *Has direct operational experience managing commercial real estate* *Has an existing property management team or relationship in place* *Is earlier in their wealth-building phase and wants the upside of active management* *Has the time and capacity to complete due diligence and close within the exchange window* *Wants flexibility to refinance, improve, or sell on their own timeline* A DST is likely the better fit if the investor: *Is approaching or in retirement and wants to eliminate active management responsibilities* *Is exchanging out of a property they have owned and managed for many years and wants relief from that burden* *Needs to complete the exchange quickly due to deadline pressure* *Wants to diversify across multiple assets, markets, or property types rather than concentrating in one replacement property* *Cannot or does not want to arrange new commercial financing within the exchange window* A combination of both structures is worth considering for investors who want partial passive income potential and partial control, or who need to precisely match the reinvestment requirement across multiple replacement properties. Many investors completing larger exchanges use one direct ownership acquisition for the majority of proceeds and one or more DSTs to satisfy the balance — capturing the possible advantages of both without being fully committed to either. **Key Point: The choice between direct ownership and a DST in a 1031 exchange is primarily a question of what the investor wants real estate to require of them for the next five to ten years.** #### **Key Takeaways** Both direct ownership and DSTs qualify as like-kind replacement properties in a 1031 exchange and can fully defer capital gains taxes Direct ownership offers control, flexibility, and upside for active operators — but demands management involvement and independent financing DSTs offer passive income potential, built-in diversification, and exchange timeline flexibility — but are illiquid and remove all operational control DSTs can solve specific 1031 exchange challenges including identification timing, debt replacement, and precise value matching A combination of both structures is a viable strategy for investors who want to balance control with passive income potential across their replacement property portfolio #### **FAQ** **Q1: Can a DST be used as a replacement property in a 1031 exchange?** A1: Yes. The IRS confirmed in Revenue Ruling 2004-86 that DST interests constitute qualifying like-kind real property for 1031 exchange purposes. DSTs are now one of the most widely used replacement property structures for investors completing exchanges, particularly those seeking passive income or facing compressed exchange timelines. **Q2: What is the minimum investment required for a DST?** A2: Most DST offerings have minimum investment thresholds in the range of $50,000 to $100,000, though this varies by offering and sponsor. This relatively low minimum — compared to the capital required for direct ownership of a commercial property — is what allows investors to spread exchange proceeds across multiple DST offerings for diversification purposes. **Q3: How quickly can a DST close compared to a direct ownership purchase?** A3: A DST investment can typically close in a matter of days once an investor selects an offering and completes the subscription paperwork. A direct ownership acquisition typically takes weeks to months depending on due diligence, financing, and negotiation timelines. For investors under 1031 exchange deadline pressure, this speed difference is often the deciding factor. **Q4: Can I combine a DST with a direct ownership property in the same 1031 exchange?** A4: Yes. Investors are not required to choose one structure exclusively. A common approach for larger exchanges is to allocate the majority of proceeds to a direct ownership replacement property and use one or more DST investments to satisfy the remaining reinvestment requirement. This can also help with debt replacement and precise value matching without requiring the entire exchange to depend on a single acquisition closing on time. **Q5: What happens to my DST investment at the end of the hold period?** A5: At the conclusion of the target hold period — typically five to seven years — the sponsor seeks to sell the property and distributes any proceeds to investors. At that point, investors may have the option to complete another 1031 exchange into a new replacement property, including another DST, to continue deferring taxes. The ability to chain exchanges is one of the primary long-term wealth-building strategies that DST investors use alongside direct ownership. To learn more about the DST options, please [contact our team](http://www.fgg1031.com).  [![](https://no-cache.hubspot.com/cta/default/5468919/interactive-183027517748.png)](https://blog.fgg1031.com/hs/cta/wi/redirect?encryptedPayload=AVxigLJWQjBXI1ReKKu7tM2Xw968W9rvbWAbRIZAO0817ojY%2FLEPqTkh3MAn775JGbhxFdybZSRFqBs8HvQ20na9zDM%2F%2FfKJifKEaU25P1pHdV9O3R7gxyvLde84kUxfkqHSO6de%2FxUjknKgYicPLOBMlNeJugKUZIukxrDrAH98a3mOofcxtjqG0F1TrYJsR30Fkex19PnZul%2BPVG8xAXIeh3V9jZ%2BlidkHToJSewaiis7H&webInteractiveContentId=183027517748&portalId=5468919) ### [Paul Getty](https://blog.fgg1031.com/blog/author/paul-getty) Paul M. Getty is one of the most experienced 1031 exchange specialists in the United States, with a career in real estate that spans over 35 years and more than $5 billion in commercial transactions across every major asset class. His work covers single-family rentals, apartments, retail, office, multifamily, and student and senior housing, giving him a practical understanding of how different property types perform across market cycles and how investors can move between them using tax-deferred exchange strategies. As President and CEO of FGG1031 | First Guardian Group, Paul advises investors through the full 1031 exchange process, from identifying qualifying replacement properties to structuring acquisitions through Delaware Statutory Trusts (DSTs) and wholly owned real estate. His guidance covers both the compliance requirements of a valid exchange and the investment decisions that determine long-term portfolio outcomes – a combination that is difficult to find in a single advisor. Paul holds a California and Texas real estate broker license and carries Series 22, 62, 63, and 82 securities licenses as a registered representative with Emerson Equity LLC, member FINRA /SIPC. He has represented buyers and sellers across complex commercial transactions, sourced and structured debt and equity, and worked alongside nationally recognized firms including Marcus Millichap, CBRE, JP Morgan, and Morgan Stanley. Before founding FGG1031, he co-founded Venture Navigation, a boutique investment banking firm whose M&A and IPO activity generated over $700 million in investor returns. Paul holds an MBA in Finance from the University of Michigan and a bachelor’s degree in chemistry from Wayne State University. He has also completed coursework in artificial intelligence at Stanford University. He is the author of four books on real estate investing and tax deferral strategy, including Tax Deferral Strategies Utilizing the Delaware Statutory Trust (DST) and Real Estate Investing in the New Era, both available on Amazon. A frequent speaker on 1031 exchanges, DST investing, and real estate tax strategy, Paul Getty is a recognized voice for investors and advisors seeking guidance on capital preservation through tax-deferred real estate investment. ## Your Comments : This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. - Latest Posts - Popular Posts [Partial 1031 Exchange: How It Works, What Gets Taxed, and When It May Make Sense](https://blog.fgg1031.com/blog/partial-1031-exchange-how-it-works) [ 1031 Exchange](https://blog.fgg1031.com/blog/topic/1031-exchange) [721 UPREIT Options in DST Programs (Part 3)](https://blog.fgg1031.com/blog/721-upreit-options-in-dst-programs) [ Real Estate Investors](https://blog.fgg1031.com/blog/topic/real-estate-investors) [ DST](https://blog.fgg1031.com/blog/topic/dst) [ 721 Exchange](https://blog.fgg1031.com/blog/topic/721-exchange) [ UPREIT](https://blog.fgg1031.com/blog/topic/upreit) [ New featured](https://blog.fgg1031.com/blog/topic/new-featured) [Can a 9% Taxable Return Beat a 4.5% Tax Advantaged DST?](https://blog.fgg1031.com/blog/can-a-9-taxable-return-beat-a-4.5-tax-advantaged-dst) [ Real Estate Investors](https://blog.fgg1031.com/blog/topic/real-estate-investors) [ DST](https://blog.fgg1031.com/blog/topic/dst) [ New featured](https://blog.fgg1031.com/blog/topic/new-featured) ### Categories - 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However, FGG1031, First Guardian Group, LightPath Capital, Inc., and their representatives do not guarantee the accuracy and validity of the information herein. Investors should perform their own investigations before considering any investment. There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) and 1031 Exchange properties. These include, but are not limited to, tenant vacancies, declining market values, potential loss of entire investment principal. Past performance is not a guarantee of future results: potential cash flow, potential returns, and potential appreciation are not guaranteed in any way and adverse tax consequences can take effect.  The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities. All financed real estate investments have a potential for foreclosure. Delaware Statutory Trust (DST) investments are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments. Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions. Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits. IRC Section 1031, IRC Section 1033, and IRC Section 721 are complex tax codes; therefore, you should consult your tax and legal professional for details regarding your situation. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over one million dollars exclusive of primary residence) and accredited entities only (generally described as an entity owned entirely by accredited individuals and/or an entity with gross assets of greater than five million dollars). If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney prior to considering an investment. Securities offered through registered representatives of [LightPath Capital, Inc.](http://www.lightpathcapital.com/) Member [FINRA](http://www.finra.org/) / [SIPC](https://www.sipc.org/). FGG1031, First Guardian Group, and LightPath Capital, Inc. are separate entities. Copyright 2022, All Rights Reserved, FGG1031 [![FGG_Footer_White](https://blog.fgg1031.com/hs-fs/hubfs/FirstGuardianGroup_2022/FGG_Footer_White.png?width=300&height=95&name=FGG_Footer_White.png "FGG_Footer_White")](http://fgg1031.com) 97 East Brokaw Road, Suite 350, San Jose, CA 95112 [(866) 398 1031](tel:(866)%20398%201031) [info@firstguardiangroup.com](mailto:) [![Bitmap](https://blog.fgg1031.com/hubfs/FirstGuardianGroup_2023/Bitmap.png)](https://brokercheck.finra.org/individual/summary/6470002) ## Recent Blogs - [Understanding the Difference Between Inheritance and Estate Tax August 3, 2023](https://blog.fgg1031.com/blog/understanding-the-difference-between-inheritance-and-estate-tax) - [Public or Private Real Estate? Your Investment Portfolio May Need Both July 27, 2023](https://blog.fgg1031.com/blog/public-or-private-real-estate-your-investment-portfolio-may-need-both) - [How to Use 1031 Exchange Funds to Improve Your Replacement Property July 20, 2023](https://blog.fgg1031.com/blog/how-to-use-1031-exchange-finds-to-improve-your-replacement-property) ## Useful Links - [Home](http://fgg1031.com/) - [About Us](https://fgg1031.com/about-us/) - [Blogs](https://blog.fgg1031.com/blog) - Testimonials from Past Customers - [Resource Center](https://fgg1031.com/resource-center/) - [Current Offerings](https://fgg1031.com/property-listings-directory/) FGG1031 | First Guardian Group and Emerson Equity LLC do not provide legal or tax advice. Securities offered through [Emerson Equity LLC](http://www.emersonequity.com/) Member [FINRA/SIPC](http://finra.org/) and MSRB registered. Emerson Equity LLC is unaffiliated with any entity herein. 1031 Risk Disclosure: - There is no guarantee that any strategy will be successful or achieve investment objectives; - Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments; - Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities; - Potential for foreclosure – All financed real estate investments have potential for foreclosure; ·Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments; - Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions; - Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits No offer to buy or sell securities is being made. Such offers may only be made to qualified accredited investors via private placement memorandum. Risks detailed in a private placement memorandum should be carefully reviewed, understood and considered before making such an investment. Prospective strategies and products used in any tax advantaged investment planning should be reviewed independently with your tax and legal advisors. Changes to the tax code and other regulatory revisions could have a negative impact upon strategies developed and recommendations made. Past performance and/or forward looking statements are never an assurance of future results. Many of the investments offered will be only available to those investors meeting the definition of an Accredited Investor under SEC Rule 501(A) and offered as Regulation D private placement securities via a Private Placement Memorandum (“PPM”). Prospective investors must receive, read and understand all of the risks associated with buying private placement securities. Investments are not guaranteed or [FDIC](http://fdic.org/) insured and risks may include but are not limited to illiquidity, no guarantee of income or guarantee that all tax advantages or objectives will be met and complete loss of principal investment could occur. **Risk Disclosure:** Alternative investment products, including real estate investments, notes & debentures, hedge funds and private equity, involve a high degree of risk, often engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop. There may be restrictions on transferring interests in any alternative investment. Alternative investment products often execute a substantial portion of their trades on non-U.S. exchanges. Investing in foreign markets may entail risks that differ from those associated with investments in U.S. markets. Additionally, alternative investments often entail commodity trading, which involves substantial risk of loss. NO OFFER OR SOLICITATION: The contents of this website: (i) do not constitute an offer of securities or a solicitation of an offer to buy of securities, and (ii) may not be relied upon in making an investment decision related to any investment offering by FGG1031 | First Guardian Group, Emerson Equity LLC, or any affiliate, or partner thereof. FGG1031 | First Guardian Group does not warrant the accuracy or completeness of the information contained herein. Copyright 2026, All Rights Reserved, FGG1031