Why investors use a DST
- Close on the deadline. A DST is already acquired and financed, so it can close quickly inside the 45- and 180-day windows — and serve as a backup so a stalled exchange does not fail.
- Truly passive. The sponsor handles management; investors receive their pro-rata share of income and proceeds.
- Institutional access and diversification. Smaller exchange amounts can reach institutional-grade assets and be spread across several DSTs, sectors, and markets.
- Pre-arranged, non-recourse debt can satisfy the exchange’s debt-replacement requirement without a personal loan.
- Estate-planning flexibility through fractional interests.
What to weigh
A DST is an illiquid private security. Investors give up control, pay fees and sponsor load that reduce returns, take on leverage and market risk, and depend on the sponsor’s execution; distributions are not guaranteed. Understand these fully before investing — see DST risks and considerations.
How Baker 1031 helps
We are independent and sponsor-agnostic. We shortlist DSTs from across the sponsors we cover that match your dollar amount, debt replacement, asset preferences, and risk tolerance; bring consistent diligence to sponsor, structure, and business plan (see our methodology); coordinate with your qualified intermediary; and identify backups so the exchange does not fail on the clock.
Is a DST right for you?
A DST may fit an accredited investor who is ready to trade active management for passivity and diversification, needs to place exchange proceeds quickly, or wants to spread a large gain across multiple assets. It is generally not a fit for someone who needs liquidity or wants control of the property.