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?
A multi-level review
Real-estate-level review
The differentiator. We underwrite the actual asset as real estate operators would — submarket fundamentals, rent roll and lease structure, tenant credit and WALT, supply pipeline, basis versus replacement cost, and the credibility of the business plan. This is the review most marketplaces skip in favor of the offering summary, and it is where we spend the most time.
Debt & structure review
We examine the financing behind the asset — leverage, loan term and maturity versus the projected hold, fixed versus floating rate, and coverage — and confirm how the program fits an investor’s debt-replacement requirement so the exchange does not create unexpected boot.
Sponsor review
We evaluate the sponsor’s full-cycle track record (programs actually bought and sold), realized results net of fees, fee and load structure, alignment of interest, and organizational depth — not just the firms with the best brochures.
Third-party DST due-diligence reports
We incorporate independent third-party due-diligence reports prepared by specialist analysts, which provide an outside read on the sponsor, the offering, and the assumptions in the projections — a check against our own work.
Broker-dealer (B/D) review & principal approval
Every offering we present is also subject to the due-diligence and supervisory review of our broker-dealer, Aurora Securities, including registered-principal approval. Independent advice operates inside an institutional compliance framework — not outside it.
Suitability & fit
Finally, the human step: does this program fit this investor’s goals, time horizon, income needs, and the diversification of the rest of their portfolio? A sound asset in the wrong portfolio is still the wrong decision.
What this means for you
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 is for informational purposes only; it is not investment, tax, or legal advice, nor an offer or solicitation, and it 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. Any investment is made solely through a sponsor’s private placement memorandum following a suitability determination. DST and real estate securities are speculative and illiquid, for accredited investors only, and involve substantial risk including possible loss of principal and the potential failure of a 1031 exchange to qualify for tax deferral. Performance references are sponsor-reported, realized-only, net of all fees, and not indicative of future results. Securities offered through Aurora Securities, Inc. (ASI), member FINRA/SIPC; Baker 1031 Investments is independent of ASI. Content subject to registered-principal approval.