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Strategies

Six tax-advantaged ways to stay invested in real estate — from Delaware Statutory Trusts to 721 UPREIT roll-ups. One team, the full toolkit, independent due diligence on every option.

Overview

Most investors don't need a single product — they need an advisor who can see the whole toolkit and assemble the right combination to defer tax and meet their goals.

Baker 1031 places Delaware Statutory Trusts, structures 1031 and 721 exchanges, sources Opportunity Zone funds, mineral and royalty interests, and REITs — and conducts independent due diligence on every sponsor and offering. We work alongside your CPA and attorney, never in their place.

01

Delaware Statutory Trusts

A Delaware Statutory Trust lets you own a fractional, beneficial interest in institutional-grade real estate — and, because the IRS treats that interest as like-kind real property, use it to complete a 1031 exchange.

2004 IRS Rev. Rul. 2004-86$25K+ Typical minimumPassive No landlord duties
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02

1031 Exchanges

A 1031 exchange — named for Section 1031 of the Internal Revenue Code — lets an investor sell appreciated real estate and reinvest the proceeds into like-kind property without recognizing capital gains tax at the time of sale.

1921 Section 1031 enacted45 days To identify180 days To close
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03

721 Exchanges (UPREIT)

A 721 exchange — also called an UPREIT — lets an investor contribute real property or DST interests into a REIT's operating partnership in exchange for operating-partnership (OP) units, deferring gain under Internal Revenue Code Section 721.

§721 IRC contribution ruleOP Units What you receiveDiversified Whole-REIT exposure
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04

Opportunity Zone Funds

Opportunity Zones, created by the 2017 Tax Cuts and Jobs Act, let investors roll capital gains from any source into a Qualified Opportunity Fund (QOF) — deferring tax on the original gain and, after a 10-year hold, owing no tax on the fund's own appreciation.

2017 Created by the TCJA180 days To invest the gain10 yrs Hold for tax-free gains
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05

Mineral & Royalty Interests

Mineral and royalty interests are among the more esoteric corners of the 1031 world: because mineral rights are considered real property, an investor can exchange into producing oil-and-gas royalties and continue deferring gain — while collecting income with no drilling or operating risk.

1031 Mineral rights eligible~9.6% Avg current yieldDepletion Tax-sheltered income
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06

REITs

A Real Estate Investment Trust (REIT) owns a portfolio of income-producing real estate and is required to distribute at least 90% of its taxable income to shareholders — giving investors diversified property exposure without owning buildings directly.

1960 REIT Act of 196090% Of income distributedDiversified Many-asset portfolios
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