Learn How To 1031 Exchange Intelligently
1031 Exchange Investment Solutions
Learn more about Delaware Statutory Trust (DST) properties, Tenancy-in-Common (TIC) properties, and using 721 exchanges (UPREITs) to complete your 1031 exchanges.
Delaware Statutory Trust (DST) Properties
A Delaware Statutory Trust (DST) is a legal entity created under Delaware law as a trust that holds title to 100% of the interest in real property. Investors acquire a beneficial interest in the trust, with limited personal liability for the underlying assets.
DSTs allow multiple investors to own fractional interests in a single property or portfolio of properties, providing access to institutional-quality properties that may otherwise be out of reach. Beneficial interests in DSTs are considered “like-kind” property for purposes of 1031 exchanges.
Jerry Baker and the Baker 1031 Investments team source and vet DST offerings to match your portfolio goals, timelines, and risk tolerance.
Lower Minimum Investment
DSTs can accommodate much lower minimum investments, whereas 1031 exchange minimums often are $100,000.
Diversification
Investors can divide their investment among multiple DSTs for a more diversified real estate portfolio.
Eliminate Boot
Any remaining profit on the sale of your relinquished property is considered “boot.” The excess cash (boot) can be invested in a DST to avoid incurring tax.
Passive Management
The DST is the single owner and agile decision maker on behalf of investors.
Estate Planning
All 1031 exchange investments receive a step-up in cost basis, so your heirs will not inherit capital gain liabilities.
721 Exchange: 1031 Exchange into a REIT
A 721 UPREIT enables you to contribute real estate to an Umbrella Partnership Real Estate Investment Trust (UPREIT) in exchange for operating partnership (OP) units. This structure preserves your 1031 tax deferral while granting access to a diversified REIT portfolio.
By contributing property to an OP, you become an indirect shareholder in a public or private REIT, receiving quarterly or monthly income distributions. Jerry Baker and Baker 1031 Investments have access to numerous UPREIT options that may be suitable for your investment portfolio.
In many cases, you can defer capital gains indefinitely until you exchange or sell your OP units under Section 721. Baker 1031 Investments can assist in coordinating tax tracking and basis allocation, ensuring your 1031 benefits are maximized.
Diversification
Exposure to a diversified, international, professionally managed REIT portfolio.
Liquidity & Optionality
Regular liquidity provided by REITs, providing investor control of exit timing.
Income Distributions
Receive monthly or quarterly distributions, often at higher rates, in perpetuity.
Estate & Retirement
Basis step-up, fractional shares, liquidity, perpetual ownership options, diversification, and more.
1031 Insurance Policy
Keep a DST as a backup option to meet the exchange deadlines and defer the capital gains tax.
Tenancy-in-Common (TICs)
Tenancy-in-Common (TIC) arrangements allow multiple investors to hold undivided fractional interests in a single property deed. Each co-owner maintains an individual ownership percentage and voting rights, offering direct real-estate exposure within a 1031 exchange.
TIC properties are professionally managed by experienced sponsors who handle leasing, maintenance, and reporting—so you can enjoy direct ownership benefits without day-to-day oversight. Each co-owner’s share is legally documented, establishing clear governance and transferability protocols.
Jerry Baker and the Baker 1031 Investments team conduct rigorous sponsor and property vetting and financial modeling to shortlist TICs that match your risk profile and investment goals.