Real estate first. Then everything else.
Most platforms screen the offering. We underwrite the building. Our review starts where the risk actually lives — the real estate — on a simple principle: if the real estate doesn't make sense, the rest of the deal won't either.
A DST is a wrapper around a property. A clean structure and an attractive headline yield cannot rescue weak underlying real estate. So before structure, sponsor reputation, or projected distributions, we ask the question a private-equity buyer would ask: would we want to own this asset, in this market, at this basis, with this debt?
Six layers, in order of what matters
Real-estate-level review
The differentiator. We underwrite the asset as operators would — submarket fundamentals, rent roll and lease structure, tenant credit and WALT, supply pipeline, basis vs. replacement cost, and the credibility of the business plan.
Debt & structure review
Leverage, loan term and maturity vs. the projected hold, fixed vs. floating rate, and coverage — and how the program fits an investor's debt-replacement requirement so the exchange doesn't create unexpected boot.
Sponsor review
Full-cycle track record (programs bought and sold), realized results net of fees, fee and load structure, alignment of interest, and organizational depth — not just the best brochures.
Third-party DST reports
We incorporate independent third-party due-diligence reports from specialist analysts — an outside read on the sponsor, the offering, and the projection assumptions.
Broker-dealer review & principal approval
Every offering is subject to the due-diligence and supervisory review of the broker-dealer, Aurora Securities, including registered-principal approval.
Suitability & fit
Finally, the human step: does this program fit this investor's goals, time horizon, income needs, and the rest of their portfolio? A sound asset in the wrong portfolio is still the wrong decision.
Fewer offerings, read more deeply
Practically, it means fewer offerings clear our process than enter it — and that the ones we present have been read at the asset level, cross-checked against independent reports, and approved through a broker-dealer's supervisory review before they ever reach you. It is slower than sorting a list by yield. We think that is the point.
This page describes our general process and does not guarantee any outcome; due diligence cannot eliminate risk. Third-party due-diligence reports reflect the views of their authors and are not independently verified by Baker 1031. Securities offered through Aurora Securities, Inc. (ASI) — CRD #46147, SEC #8-51322 — member FINRA/SIPC. Gerald F. 'Jerry' Baker, III is a registered representative of ASI (FINRA CRD #7537416). Baker 1031 Investments, LLC is independent of ASI and is not a registered broker-dealer or investment adviser. This page is informational only and is not an offer to sell or a solicitation of an offer to buy any security, or tax or legal advice; any offer is made solely through a sponsor's private placement memorandum following a suitability determination. DST and related securities are speculative and illiquid, for accredited investors only, and involve substantial risk including possible loss of principal. Content subject to registered-principal review.