Real Estate Investment Trusts — REITs — are one of the most accessible ways to invest in income-producing real estate without buying, financing, or managing property yourself. A REIT is a company that owns, operates, or finances real estate, and that passes most of its income through to shareholders in the form of dividends. In exchange for meeting a set of rules (including distributing at least 90% of its taxable income), a qualifying REIT avoids corporate-level income tax, so income is taxed mainly at the shareholder level. The result is a vehicle that lets ordinary investors own a slice of large, diversified real estate portfolios — apartments, warehouses, data centers, shopping centers, cell towers — through shares that can trade like a stock. This guide explains what a REIT is, how REITs make money, the 90% distribution rule, the three types of REITs, and how REITs compare to other real estate investments. Note that REIT taxation and suitability rules vary by situation — verify the current rules with your tax advisor; this is educational information, not investment advice.
What Is a REIT?
A REIT — Real Estate Investment Trust — is a company that owns, operates, or finances income-producing real estate, and that distributes most of its income to shareholders. The core idea is to let investors access real estate the way they access stocks: by buying shares, rather than by buying, financing, and managing property directly. So a REIT pools investor capital, deploys it into real estate (or real estate debt), and passes the income through to shareholders.
To qualify as a REIT under the tax code, a company must meet specific tests: distribute at least 90% of its taxable income to shareholders annually, hold at least 75% of its assets in real estate, cash, or government securities, derive at least 75% of its gross income from real estate (rents, mortgage interest, and property gains), have at least 100 shareholders, and not be closely held (the '5/50' rule — five or fewer individuals can't own more than 50% of the shares). A company meeting these tests avoids corporate-level income tax, so its income is taxed at the shareholder level instead of being taxed twice.
So a REIT is a tax-advantaged company that owns or finances income-producing real estate and passes most of its income to shareholders as dividends, giving investors real estate exposure through shares. A REIT — a Real Estate Investment Trust that owns, operates, or finances income-producing real estate, qualifies by meeting tests (the 90% distribution rule, asset and income tests, 100-shareholder and 5/50 rules), and avoids corporate tax by distributing its income — lets investors access real estate without owning property directly. It pools capital and passes income through. Understanding what a REIT is frames how it works. A REIT is a company that owns or finances income-producing real estate and distributes most of its income to shareholders, letting investors access real estate through shares rather than direct ownership.
How REITs Make Money
REITs make money primarily from the real estate they own or finance, and they pass that income through to shareholders. An equity REIT — the most common type — owns and operates income-producing properties (apartments, offices, warehouses, retail centers, data centers) and earns income mainly from the rent its tenants pay. After expenses, that rental income flows through to shareholders as dividends, and the properties may also appreciate in value over time.
A mortgage REIT (mREIT) makes money differently: rather than owning property, it finances real estate by holding mortgages or mortgage-backed securities, earning the interest those loans generate. Its profit comes largely from the spread between the interest it earns on its assets and its own cost of borrowing — which makes mortgage REITs highly sensitive to interest rates. So the two main engines are rents (equity REITs) and mortgage interest (mortgage REITs), with property appreciation as an additional source for equity REITs.
So REITs make money from rents, mortgage interest, and property gains, and distribute most of that income to shareholders — which is what makes REIT dividends a central part of the investment. How REITs make money — equity REITs earning rents (and appreciation) from properties they own, mortgage REITs earning the interest-rate spread on mortgages and mortgage-backed securities they hold, and both passing income through to shareholders as dividends — explains the income that drives a REIT investment. Rents and mortgage interest are the engines. Understanding how REITs make money shows where the dividends come from. REITs make money from rents (equity REITs), mortgage interest (mortgage REITs), and property appreciation, distributing most of that income to shareholders as dividends.
Most of a REIT's income flows straight through to you as dividends — that is the whole point of the structure, and the reason REIT yields tend to run higher than the broad stock market.
The 90% Distribution Rule
The 90% distribution rule is the defining feature of how REITs work — and the reason REIT yields tend to be high. To qualify as a REIT (and avoid corporate-level income tax), a company must distribute at least 90% of its taxable income to shareholders each year as dividends. In practice, most REITs distribute close to 100% of their taxable income to eliminate corporate tax entirely. So a REIT is structurally required to pass most of its earnings through to you.
This rule is the trade-off at the heart of the REIT structure: in exchange for avoiding the double taxation that ordinary corporations face (corporate tax, then tax on dividends), a REIT agrees to distribute nearly all of its income. So instead of retaining earnings to reinvest internally (as a typical company might), a REIT pays them out — which is why REITs are prized for income, and why they often raise new capital (by issuing shares or debt) to fund growth, rather than relying on retained earnings.
So the 90% distribution rule both produces the high, regular dividends REITs are known for and shapes how REITs grow. So it is central to understanding REIT income. The 90% distribution rule — the requirement that a REIT distribute at least 90% of its taxable income to shareholders annually (with most distributing nearly 100%) to avoid corporate tax — is the defining feature of the REIT structure and the source of REITs' characteristically high yields. It also shapes how REITs fund growth (raising capital rather than retaining earnings). Understanding the 90% rule shows why REIT dividends are high. The 90% distribution rule requires a REIT to pay out at least 90% of its taxable income as dividends, which is why REIT yields are high and why REITs raise capital to grow.
Types of REITs
There are three main types of REITs, distinguished by how they participate in real estate. Equity REITs — the most common — own and operate income-producing real estate, earning income mainly from rents and, over time, from property appreciation. They span many property sectors: residential, industrial, office, retail, healthcare, data centers, self-storage, and more. So equity REITs are the classic 'own the buildings, collect the rent' model.
Mortgage REITs (mREITs) don't own property; they finance real estate by holding mortgages and mortgage-backed securities, earning the interest-rate spread between what they earn on those assets and their cost of borrowing. This makes them highly interest-rate-sensitive — they often offer higher yields but also carry higher risk. Hybrid REITs combine both approaches, owning some property and holding some mortgage debt.
So the three types are equity REITs (own property, earn rents), mortgage REITs (finance property, earn interest), and hybrid REITs (both) — each with a different risk-and-return profile. So knowing the type helps you understand what you're investing in. Types of REITs — equity REITs (owning and operating income-producing property, earning rents and appreciation), mortgage REITs/mREITs (financing real estate via mortgages and MBS, earning the interest-rate spread, more rate-sensitive and higher-risk), and hybrid REITs (both) — distinguish how a REIT participates in real estate. Each has a different risk-return profile. Understanding the types frames what a given REIT does. The three REIT types are equity REITs (own property, earn rents), mortgage REITs (finance property, earn interest, more rate-sensitive), and hybrid REITs (both).
- A REIT owns, operates, or finances income-producing real estate and distributes most of its income to shareholders as dividends.
- The 90% distribution rule — paying out at least 90% of taxable income — is why REITs avoid corporate tax and why their yields are high.
- Three types: equity REITs (own property, earn rents), mortgage REITs (finance property, earn interest), and hybrid REITs (both).
- REITs offer passive, liquid, diversified, low-minimum real estate exposure — but REIT shares are securities, not like-kind real property, so they are not 1031-eligible.
Publicly Traded vs. Non-Traded REITs
Beyond their type, REITs also differ in how they're held — and the biggest distinction is whether a REIT is publicly traded or non-traded. Publicly traded REITs are listed on stock exchanges, so their shares trade throughout the day at market prices, offering daily liquidity and transparent pricing. They generally have lower upfront fees, but their share prices move with the broader market, so they can be volatile in the short term even when the underlying properties are stable.
Non-traded REITs are registered with the SEC but not listed on an exchange. Their shares don't trade daily; instead, they are valued periodically at net asset value (NAV), and investors typically access liquidity only through periodic redemption programs, which are often capped (commonly around 5% per year) and can be suspended. Non-traded REITs have historically carried higher upfront fees and loads, and they generally suit longer-term income investors who don't need liquidity. Non-traded and private REIT offerings typically require accredited or otherwise suitable investors and are accessed through a broker-dealer after a suitability review.
So the traded/non-traded distinction shapes liquidity, pricing, fees, and volatility — an important consideration alongside the REIT's type. So understanding it helps you choose the right structure. Publicly traded vs. non-traded REITs — traded REITs (exchange-listed, liquid, daily market pricing, lower fees, but market volatility) versus non-traded REITs (SEC-registered but unlisted, illiquid with capped periodic redemptions, periodic NAV valuation, historically higher fees, suited to longer-term income investors) — is a key structural choice. It affects liquidity, pricing, and fees. Understanding it complements understanding the REIT's type. REITs are either publicly traded (listed, liquid, market-priced, lower-fee, more volatile) or non-traded (unlisted, illiquid, NAV-valued, historically higher-fee, longer-term income-oriented).
Two questions define any REIT investment: what does the REIT do — own property, hold mortgages, or both — and how do you hold it: through a liquid exchange-listed share or an illiquid, NAV-priced non-traded structure?
REITs vs. Other Real Estate Investments
REITs are one of several ways to invest in real estate, and they compare in distinct ways to the alternatives. Versus direct ownership, REITs are passive, liquid (if traded), diversified, and accessible at low minimums — you don't manage tenants, toilets, or financing. Direct ownership offers hands-on control, potential operating leverage, and direct tax benefits like depreciation, but it requires active management and is illiquid and concentrated.
Versus a Delaware Statutory Trust (DST), the key difference is tax treatment in an exchange: a DST is passive, fractional real estate that qualifies as like-kind property for a 1031 exchange (so it can defer capital-gains tax), whereas a REIT share is a security that is not 1031-eligible. A common bridge is to 1031 into a DST and later have the DST property acquired by a REIT through a 721 (UPREIT) exchange, converting the interest into operating-partnership units (and eventually REIT shares) while maintaining deferral. So REITs offer liquidity and diversification, while DSTs offer 1031 eligibility.
So REITs trade direct control and 1031 eligibility for passivity, liquidity, diversification, and low minimums — a different package than direct ownership or DSTs. So the right choice depends on your goals. REITs vs. other real estate investments — versus direct ownership (REITs are passive, liquid, diversified, low-minimum, but you give up control and direct depreciation; direct ownership is hands-on, leveraged, illiquid, concentrated) and versus DSTs (REITs are liquid and diversified but not 1031-eligible, while DSTs are 1031-eligible like-kind real property; a 1031-into-DST-then-721-into-REIT path bridges them) — frames the trade-offs. Each fits different goals. Understanding the comparison shows where REITs fit. REITs differ from direct ownership (passive/liquid/diversified vs. hands-on/concentrated) and from DSTs (liquid but not 1031-eligible, while DSTs are 1031-eligible like-kind real property).
How Baker 1031 Helps You Understand REITs
Baker 1031 Investments helps investors understand how REITs work — what a REIT is, how REITs make money, the 90% distribution rule, the three types of REITs, the traded-versus-non-traded distinction, and how REITs compare to direct ownership and DSTs — so you can decide whether REITs fit your goals and, if so, access suitable offerings.
REIT and non-traded-REIT interests and related securities are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review — non-traded and private REITs typically require accredited or otherwise suitable investors, while publicly traded REITs trade through ordinary brokerage accounts. Baker 1031 does not provide tax or legal advice; your CPA and attorney handle your specific tax situation, including how REIT dividends are taxed and how REITs interact with 1031 and 721 strategies, which can be technical. We help you understand the REIT structure, weigh REITs against other real estate vehicles, and access suitable offerings when appropriate, coordinating with your tax professionals. Yields and returns are never promised — past performance does not guarantee future results, and REIT share prices and distributions can fluctuate. Our role is to help you understand REITs clearly and invest only when suitable for your goals and risk tolerance.
Frequently Asked Questions
What is a REIT?
A REIT — Real Estate Investment Trust — is a company that owns, operates, or finances income-producing real estate and distributes most of its income to shareholders as dividends. The idea is to let investors access real estate through shares, rather than by buying, financing, and managing property directly. To qualify as a REIT under the tax code, a company must meet several tests: distribute at least 90% of its taxable income annually, hold at least 75% of its assets in real estate, cash, or government securities, derive at least 75% of its gross income from real estate, have at least 100 shareholders, and not be closely held (the 5/50 rule). A qualifying REIT avoids corporate-level income tax, so its income is taxed mainly at the shareholder level. So a REIT is a tax-advantaged company that pools capital into real estate and passes most of its income through to investors.
How do REITs make money?
REITs make money from the real estate they own or finance. Equity REITs — the most common type — own and operate income-producing properties (apartments, warehouses, offices, retail, data centers) and earn income mainly from rents, with property appreciation as an additional source over time. Mortgage REITs (mREITs) don't own property; they finance real estate by holding mortgages and mortgage-backed securities, earning the interest-rate spread between what those assets pay and their own cost of borrowing — which makes them highly interest-rate-sensitive. After expenses, REITs pass most of this income through to shareholders as dividends. So REITs earn money from rents, mortgage interest, and property gains, and distribute most of it to investors. The dividends you receive come directly from this underlying real estate income, which is what makes REITs an income-oriented investment.
What is the 90% distribution rule?
The 90% distribution rule requires a REIT to distribute at least 90% of its taxable income to shareholders each year as dividends in order to qualify as a REIT and avoid corporate-level income tax. In practice, most REITs distribute close to 100% of their taxable income to eliminate corporate tax entirely. This rule is the defining feature of the REIT structure — it's the reason REIT yields tend to be high, because a REIT is required to pass most of its earnings through to investors rather than retaining them. The trade-off is that REITs can't easily fund growth from retained earnings (since they pay most of it out), so they often raise new capital by issuing shares or debt to acquire or develop properties. So the 90% rule produces REITs' characteristically high dividends and shapes how they grow — it's central to understanding why REITs are prized for income.
What are the three types of REITs?
The three main types are equity REITs, mortgage REITs, and hybrid REITs. Equity REITs — the most common — own and operate income-producing real estate, earning income mainly from rents and, over time, from property appreciation; they span sectors like residential, industrial, office, retail, healthcare, and data centers. Mortgage REITs (mREITs) don't own property; they finance real estate by holding mortgages and mortgage-backed securities, earning the interest-rate spread between what those assets pay and their borrowing cost — which makes them highly interest-rate-sensitive, often higher-yielding but higher-risk. Hybrid REITs combine both approaches, owning some property and holding some mortgage debt. So the three types differ by how they participate in real estate — owning it (equity), financing it (mortgage), or both (hybrid) — and each carries a different risk-and-return profile. Knowing the type helps you understand what a given REIT actually does.
Are REIT dividends taxed?
Yes — REIT dividends are generally taxable, and most of a REIT's ordinary dividends are taxed as ordinary income rather than at the lower qualified-dividend rates, because the REIT itself paid no corporate tax. However, a 20% deduction under Section 199A applies to qualified REIT dividends, which lowers the effective top federal rate on those dividends to roughly 29.6%; the 199A deduction was made permanent by the 2025 OBBBA legislation. Some REIT distributions are also classified as return of capital (which reduces your cost basis rather than being currently taxed) or as capital-gain distributions (taxed at capital-gains rates). REITs report the breakdown to you on Form 1099-DIV. So REIT dividends are mostly ordinary income with a 20% deduction, plus possible return-of-capital and capital-gain components. The exact treatment depends on your situation, so verify the current rules with your tax advisor.
Are REITs liquid?
It depends on the type of REIT. Publicly traded REITs are listed on stock exchanges, so their shares trade throughout the day at market prices — they're highly liquid, much like stocks, and you can generally buy or sell quickly through a brokerage account. Non-traded REITs are a different story: they're registered with the SEC but not listed on an exchange, so their shares don't trade daily. Liquidity in a non-traded REIT typically comes only through a periodic redemption program, which is often capped (commonly around 5% per year) and can be suspended at the REIT's discretion, especially during stress. So non-traded REITs are illiquid and intended for longer-term investors who don't need ready access to their capital. So if liquidity matters to you, a publicly traded REIT offers it; a non-traded REIT does not. Match the structure to your liquidity needs.
How are REITs different from owning property directly?
REITs and direct ownership offer very different experiences. With a REIT, you invest passively by buying shares — you don't manage tenants, maintenance, or financing, and you gain instant diversification across many properties, often at a low minimum, with liquidity if the REIT is publicly traded. With direct ownership, you have hands-on control, the ability to use leverage, and direct tax benefits like depreciation, but you also take on active management, illiquidity, and concentration in one or a few properties. So REITs trade control and certain direct tax benefits for passivity, liquidity, diversification, and low minimums. One important difference: REIT shares are securities, not like-kind real property, so they can't be used in a 1031 exchange to defer capital-gains tax, whereas direct real estate can. So the choice depends on whether you want a passive, liquid, diversified investment (REIT) or a hands-on, controllable, 1031-eligible one (direct property).
Can I use a REIT in a 1031 exchange?
No — REIT shares are not eligible for a 1031 exchange. A 1031 exchange requires the exchange of like-kind real property held for investment or business use, and REIT shares are securities, not real property, so they don't qualify. This means you can't sell investment real estate and 1031 directly into REIT shares to defer your capital-gains tax. There is, however, an indirect path that involves REITs: you can 1031 into a Delaware Statutory Trust (DST), which is 1031-eligible like-kind real property, and the DST's property may later be acquired by a REIT through a 721 (UPREIT) exchange. That converts your interest into operating-partnership units (which can eventually convert to REIT shares) while maintaining your tax deferral. So a direct 1031 into a REIT isn't possible, but a 1031-into-DST-then-721-into-REIT structure can ultimately give you REIT exposure with deferral preserved. Confirm the specifics with your tax advisor.
What is the difference between a traded and a non-traded REIT?
A publicly traded REIT is listed on a stock exchange, so its shares trade throughout the day at transparent market prices, offering daily liquidity and generally lower upfront fees — but its share price moves with the broader market, so it can be volatile in the short term. A non-traded REIT is registered with the SEC but not listed on an exchange, so its shares don't trade daily; instead, it's valued periodically at net asset value (NAV), and liquidity comes only through a periodic redemption program that is often capped (commonly around 5% per year) and can be suspended. Non-traded REITs have historically carried higher upfront fees and loads and generally suit longer-term income investors who don't need liquidity. So the key differences are liquidity (daily vs. limited), pricing (market vs. periodic NAV), fees (generally lower vs. historically higher), and volatility. Choose the structure that fits your liquidity needs and time horizon.
Are REITs a good source of income?
REITs are often used for income because the 90% distribution rule requires them to pay out most of their taxable income as dividends, so REIT yields tend to run higher than the broad stock market. Equity REITs in stable, income-oriented sectors (net-lease, healthcare, certain residential) can offer relatively steady distributions, while mortgage REITs often offer higher yields but with more interest-rate risk. That said, REIT income isn't guaranteed: distributions can be cut, property income can decline, and share prices fluctuate, so REITs carry real investment risk. REITs also tend to be more volatile and rate-sensitive than bonds, even when used for income. So REITs can be a meaningful income source for investors who understand the risks and want real estate exposure, but they shouldn't be treated as guaranteed or bond-like. Past performance and current yields don't guarantee future distributions, so size and diversify any REIT income allocation appropriately.
What property sectors do REITs invest in?
Equity REITs invest across a wide range of property sectors, each with its own demand drivers. Common sectors include residential (apartments, single-family rentals, manufactured housing), industrial (warehouses and logistics facilities, driven by e-commerce), retail (shopping centers and net-lease properties), office, healthcare (medical office, senior housing, hospitals), data centers (driven by cloud computing and AI demand), self-storage, hospitality (hotels), and specialized sectors like cell towers, timberland, and farmland. Different sectors behave differently across economic cycles — some, like net-lease and healthcare, are prized for stable income, while others, like data centers and industrial, are favored for growth. Mortgage REITs, by contrast, invest in real estate debt rather than a specific property sector. So REITs span virtually the entire real estate landscape, which is part of what makes them a flexible way to gain targeted or diversified real estate exposure. Understanding a REIT's sector helps you understand its income and risk profile.
How do I invest in a REIT?
How you invest depends on the type of REIT. Publicly traded REITs are bought and sold like stocks through an ordinary brokerage account — you can purchase individual REIT shares or invest through REIT mutual funds and ETFs that hold baskets of REITs for instant diversification. Non-traded and private REITs aren't bought on an exchange; they're offered through a broker-dealer, typically require accredited or otherwise suitable investors, and involve a suitability review and subscription process before you invest. So for liquid, low-minimum exposure, publicly traded REITs and REIT funds are the simplest route, while non-traded REITs are a longer-term, advisor-assisted commitment. Either way, it's worth understanding the REIT's type, sector, fee structure, and liquidity terms before investing. Working with a broker-dealer can help you evaluate non-traded offerings and confirm suitability. So choose the access route that matches your goals, time horizon, and need for liquidity, and review the specifics before committing capital.
What are the main risks of investing in REITs?
REITs carry several risks. Market risk: publicly traded REIT share prices fluctuate with the broader market and can fall even when the underlying properties are stable. Interest-rate risk: REITs (especially mortgage REITs) are sensitive to rising rates, which can pressure both share prices and, for mortgage REITs, the interest-rate spread they earn. Property and sector risk: rents, occupancy, and property values can decline, and individual sectors can underperform. Distribution risk: dividends aren't guaranteed and can be cut if income falls. Liquidity risk: non-traded REITs are illiquid, with capped, suspendable redemptions. And leverage risk: many REITs use debt, which amplifies both returns and losses. So while REITs offer income and diversification, they are real investments that can lose value. Diversifying across REIT types and sectors, understanding the structure, and sizing the allocation appropriately help manage these risks — but they don't eliminate them. Past performance doesn't guarantee future results.
Do REITs offer diversification?
Yes — REITs can offer diversification in two senses. First, a single REIT typically owns many properties across multiple markets, so buying one REIT share gives you exposure to a diversified pool of real estate rather than a single building — and a REIT fund or ETF adds another layer by holding many REITs. Second, real estate as an asset class has historically behaved somewhat differently from stocks and bonds, so adding REITs to a portfolio of equities and fixed income can improve diversification and provide an income stream tied to real estate. That said, publicly traded REITs do trade as equities and can move with the stock market, especially in the short term, so the diversification benefit is partial rather than complete. So REITs offer meaningful diversification — within real estate and across asset classes — making them a common building block in a diversified portfolio. As with any allocation, size REIT exposure to fit your overall goals and risk tolerance.
How does Baker 1031 help me understand REITs?
We help investors understand how REITs work — what a REIT is, how REITs make money, the 90% distribution rule, the three types of REITs, the traded-versus-non-traded distinction, and how REITs compare to direct ownership and DSTs — so you can decide whether REITs fit your goals and, if so, access suitable offerings. REIT and non-traded-REIT interests are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review; non-traded and private REITs typically require accredited or otherwise suitable investors, while publicly traded REITs trade through ordinary brokerage. Baker 1031 does not provide tax or legal advice — your CPA and attorney handle your specific tax situation, including REIT dividend taxation and how REITs interact with 1031 and 721 strategies. We help you understand the structure, weigh REITs against alternatives, and access suitable offerings when appropriate. Yields and returns are never promised; past performance doesn't guarantee future results.
Glossary
- REIT
- A company that owns, operates, or finances income-producing real estate.
- Equity REIT
- A REIT that owns property and earns income from rents.
- Mortgage REIT (mREIT)
- A REIT that finances real estate and earns mortgage interest.
- Hybrid REIT
- A REIT that both owns property and holds mortgage debt.
- 90% Distribution Rule
- The requirement to pay out at least 90% of taxable income.
- 75% Asset Test
- At least 75% of assets in real estate, cash, or government securities.
- 75% Income Test
- At least 75% of gross income from real estate sources.
- 5/50 Rule
- Five or fewer individuals can't own more than 50% of shares.
- Dividend
- The distribution a REIT pays shareholders from its income.
- Publicly Traded REIT
- An exchange-listed, liquid, market-priced REIT.
- Non-Traded REIT
- An SEC-registered but unlisted, illiquid, NAV-valued REIT.
- Net Asset Value (NAV)
- The per-share value used to price a non-traded REIT.
- Redemption Program
- A non-traded REIT's limited, often-capped liquidity feature.
- Section 199A Deduction
- The 20% deduction on qualified REIT dividends.
- Delaware Statutory Trust (DST)
- 1031-eligible fractional real estate (unlike a REIT share).
- 721 / UPREIT Exchange
- Contributing property to a REIT for OP units, preserving deferral.
Sources & References
- U.S. Securities and Exchange Commission. Investor.gov — Real Estate Investment Trusts (REITs)
- Nareit. What's a REIT (Real Estate Investment Trust)?
- Cornell Legal Information Institute. 26 U.S. Code § 856 — Definition of real estate investment trust
- IRS. About Form 1099-DIV, Dividends and Distributions
Disclosures
This article is published by Baker 1031 Investments, LLC for general educational purposes for accredited investors and is not an offer to sell or a solicitation of an offer to buy any security, nor is it tax, legal, accounting, or investment advice or a recommendation. Any securities offering is made solely through a sponsor’s private placement memorandum (PPM) following a suitability determination. Securities offered through Aurora Securities, Inc. (ASI), member FINRA / SIPC; Baker 1031 Investments is independent of ASI.
Oil & gas mineral and royalty interests and DST programs are speculative, illiquid securities sold only to verified accredited investors and involve substantial risk, including possible loss of principal, commodity-price and production-decline risk, lack of control, and the risk that an intended 1031 exchange fails to qualify for tax deferral. Whether a particular interest qualifies as like-kind real property is a fact-specific legal determination that varies by state and by the terms of the instrument. Tax results depend on your individual circumstances. Consult your own CPA and attorney before acting. Past performance does not guarantee future results.
