Regulation Best Interest.

Acting in your best interest

Regulation Best Interest (Reg BI) is an SEC rule that applies when a broker-dealer or its registered representative makes a recommendation of a securities transaction or investment strategy to a retail customer. The recommendation must be in your best interest at the time it is made, and the firm and representative may not place their own interests ahead of yours.

What Reg BI requires

• Disclosure Obligation — provide, in writing, the material facts about the relationship, including the capacity in which we act, fees and costs, and material conflicts of interest, before or at the time of a recommendation.
• Care Obligation — understand the potential risks, rewards, and costs of a recommendation and have a reasonable basis to believe it is in your best interest based on your investment profile.
• Conflict of Interest Obligation — identify and, at a minimum, disclose, and in some cases mitigate or eliminate, conflicts of interest.
• Compliance Obligation — maintain written policies and procedures reasonably designed to achieve compliance with Reg BI.

The capacity in which we act

For these transactions your representative acts in a brokerage capacity through Aurora Securities, Inc., and is compensated on a transaction basis. Baker 1031 Investments and its representatives are not acting as investment advisers or as fiduciaries under the Investment Advisers Act with respect to these brokerage transactions.

Fees and costs you may pay

Private placements such as DSTs carry up-front and ongoing costs that reduce the amount invested and your returns, including selling commissions, dealer-manager fees, sponsor organization and offering costs (the “load”), and ongoing asset-management and disposition fees charged by the sponsor. The specific fees, costs, and conflicts for any offering are disclosed in that offering's private placement memorandum, which you should read in full.

Conflicts of interest

Because selling compensation on most offerings is paid by the sponsor out of the offering's fees, there is a financial incentive to recommend that you invest and to recommend offerings that pay compensation. We address conflicts through disclosure and registered-principal supervision. Our “Preferred” sponsor designation reflects the depth of our diligence coverage and is not an endorsement, rating, or guarantee.

Key documents

Review the following, and ask your representative any questions about fees, risks, or conflicts before investing:

• Aurora Securities Form CRS (Customer Relationship Summary)
• Aurora Securities Regulation Best Interest disclosure — available from Aurora Securities, Inc. on request.
• The private placement memorandum for any specific offering.
• Check this firm and its representatives on FINRA BrokerCheck.