You generally don't write us a check.
On most DST and private real-estate offerings, the sponsor pays selling compensation out of the offering's stated fees — the same fees disclosed in the private placement memorandum (PPM). As the placing broker, Baker 1031 (through the broker-dealer, Aurora Securities) is paid a selling commission from that amount rather than billing you separately.
What matters for you is the total load — the sum of all fees and costs — because it reduces the equity that goes to work in the real estate. That figure, and every component of it, is disclosed in the offering's PPM, which controls.
The cost components of a typical DST
| Cost component | Who receives it | Where it's disclosed |
|---|---|---|
| Selling commission | The placing broker (Baker 1031 via Aurora) | PPM — use of proceeds & fees |
| Dealer-manager fee | The sponsor's managing broker-dealer | PPM — use of proceeds & fees |
| Organization & offering costs | Sponsor (legal, formation, marketing) | PPM — use of proceeds & fees |
| Acquisition / financing fees | Sponsor | PPM — fees & compensation |
| Ongoing asset-management fee | Sponsor / asset manager | PPM — ongoing fees |
| Disposition fee (at sale) | Sponsor | PPM — fees & compensation |
Illustrative categories; exact figures vary by offering and are stated in each PPM. Not a quote.
What you can hold us to
No house product
We are sponsor-agnostic and don't manufacture our own deals, so we aren't choosing between your interest and an in-house allocation.
Load is part of diligence
We weigh each offering's total load against the quality of the asset and sponsor — a high load has to be earned, and we'll say when it isn't.
Disclosed, then disclosed again
All compensation and conflicts are set out in the PPM you receive before investing; if anything conflicts with this page, the PPM controls.
Fees, answered
Do I pay Baker 1031 a separate fee or commission?
Generally no. On most DST and private placements, selling compensation is paid by the sponsor out of the offering's disclosed fees, not billed to you separately. Any exception would be disclosed to you in writing before you invest.
What is a DST 'load'?
The load is the total of all up-front fees and costs in an offering — selling commission, dealer-manager fee, and organization/offering costs — expressed as a percentage of the amount raised. It reduces the equity invested in the property and is disclosed in the PPM.
Are there ongoing fees after I invest?
Yes — sponsors typically charge ongoing asset-management fees and a disposition fee at sale. These are described in the PPM and are reflected in the net, after-fee return figures we reference.
How do fees affect my return?
Higher fees reduce net return, all else equal. That's why we treat load as a core part of diligence and report sponsor track records net of fees. Past performance does not indicate future results.
This page describes compensation generally and is not a quote or an offer; actual fees, conflicts, and compensation are disclosed in each offering's private placement memorandum, which controls. 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.