Sponsoring a DST Investment - Questions regarding Process

Some random questions I have as I am trying to get a solid grasp on how DST sponsors package deals and make money.

• Assuming sponsors need to have necessary capital (equity and/or debt) to be able to acquire the target property PRIOR to syndicating out DST shares to a broker dealer network or similar?
• Beyond normal risks associated with taking on debt leverage, are there any real benefits to a DST investment being 0% leverage?  Wouldn't it be challenging to hit a decent cash on cash yield without some degree of debt being utilized?
• Assuming one of the challenges/risks to a DST sponsor is actually succeeding in syndicating out their equity portion with DST investors?  For example, sponsor purchases NNN credit long term lease retail asset for $8MM at a 5.5% cap rate.  50% debt leverage, interest only at 4%.  50% equity down payment, which would earn a 7% equity cash on cash yield (keeping numbers simplified).  Sponsor sells off their $4M equity position to DST investors at 6% return.  They make an arbitrage on the 7% vs 6%.  Plus the customary "fees" for sponsoring the deal (if anyone has a general idea as to what said fees are and what those typically amount to, it would be helpful).
• Does sponsor need to maintain some form of minimum equity position in the deal?  Can they sell out 100% of their position?  Or would lender, or some legal requirement, necessitate them to have some skin in the game moving forward?
• On the flip side, I imagine part of risk is if the sponsor is unable to syndicate enough equity out of deal.  i.e. they sell out 50% of the equity but for whatever reason get stuck holding the last 50%?
• Any other sponsorship risks I should be thinking about?