# Expertise: How I help investors use DSTs in a 1031 exchange

> How Jerry Baker helps real estate investors use DSTs in a 1031 exchange: what he does and doesn't do, his strategies, due diligence, and background.

Source: https://baker1031.com/expertise


I'm Jerry Baker, founder of Baker 1031 Investments. I help real estate investors who are selling property build a 1031 exchange plan with Delaware Statutory Trust (DST) investments. My job is to understand what you need, show you the options that fit, and tell you plainly what I like and where I have reservations.

## By the numbers

- **$10 billion**: Real estate transaction experience
- **1,100+**: Full-cycle 1031 DST investments I track
- **20+**: Institutional sponsors on my platform
- **2026**: GlobeSt top commercial real estate leader

## What I do

Most of the people I work with have spent years owning and managing property. They're selling, and they want to defer the capital gains tax without taking on another property to manage. I help them find replacement property that fits their income needs, their debt, and their timeline.

- **Build the plan.** We look at your equity, the debt you need to replace, your income goals, and your 45- and 180-day deadlines.
- **Narrow the options.** I offer DSTs, 721 DSTs, and oil and gas royalties from more than 20 sponsors, and show you only the ones that fit.
- **Review them together.** For each one, I tell you why I'm considering it, what I like, and where I have reservations.
- **Coordinate the closing.** My team and I handle the paperwork with the sponsor and your qualified intermediary.
- **Stay with you after.** I keep in touch through the hold period, the sponsor updates, and the eventual sale or 721 exit.

## What I don't do, and why

You should know how I work before you ever get on a call with me. These are the lines I hold.

### I don't offer proprietary offerings

Baker 1031 Investments doesn't sponsor or own any of the DSTs I offer. Some firms offer DSTs they created themselves, which can make it harder to recommend a competitor's offering when it fits better. I don't have that conflict. My job is to find what fits you across more than 20 sponsors, not to fill a deal of my own.

### I don't try to sell you

My first job is to understand what you need. Sometimes the right answer isn't a DST. You may want to keep control of your property, buy a property directly, or pay the tax and move on. If that's the case, I'll tell you.

### I don't pressure you because of a deadline

The 45- and 180-day deadlines are real, and I'll help you plan around them. But I won't push you into an offering just to beat the clock. That's why I encourage you to call me before your sale closes.

### I don't hide the downsides

We'll talk about fees (typically about 8% to 10% of your equity), the loss of control, the illiquidity, and the risks. You should know what you're giving up before you decide.

### I don't recommend what I wouldn't stand behind

Every offering goes through my five-part due diligence before I make it available. I pass on offerings that don't meet my standards.

### I don't give tax or legal advice

I'm not a CPA or an attorney. I work alongside yours and make sure everyone has what they need.

### I don't hold your money

Your exchange funds stay with your qualified intermediary until closing. They go from the intermediary to the sponsor.

### I don't disappear after closing

A DST is a multi-year investment. I stay in touch through the hold, the updates, and the sale.

## How I think about DSTs

1. **Start with the goal, not the product.** Income now, growth later, less debt, an estate plan, or simply no more tenants. The answer changes which DSTs make sense, or whether one does at all.
2. **A DST is a trade.** You give up control and liquidity in exchange for passive ownership of institutional real estate. That trade is right for some investors and wrong for others.
3. **The sponsor matters as much as the property.** The sponsor runs the property for years. I look at their track record, their full-cycle results, and how they've handled hard markets.
4. **Debt should match you, not the deal.** Leverage can help replace the loan you paid off. It also adds risk. We pick a level you're comfortable with.
5. **Plan the exit on day one.** The projected hold, the 721 option, and what happens at sale all matter before you invest, not after.
6. **Spread the risk.** Dividing proceeds across property types, regions, and sponsors can reduce the impact of any one investment.

> “My job isn’t to sell you a DST. It’s to help you make a decision you’ll still feel good about when the property sells.” — Jerry Baker

## Strategies I use, and when they fit

| Strategy | What it is | Can fit when | May not fit when |
|---|---|---|---|
| Diversify across DSTs | Split proceeds across several DSTs by property type, region, and sponsor. | You have enough equity to meet several minimums. | Your equity is small, or you want one simple holding. |
| Income first | All-cash or low-leverage DSTs focused on steady distributions. | You're retiring or relying on the income. | You need to replace significant debt. |
| Match the debt | Leveraged DSTs that help replace the loan paid off at sale. | You had a mortgage on the property you sold. | You don't want to take on more leverage. |
| 721 (UPREIT) path | A DST that can later be contributed to a REIT's operating partnership. | You want more liquidity or simpler estate planning later. | You want to do another 1031 exchange at the end. |
| Oil and gas royalties | Royalty interests in producing wells that can qualify as like-kind property. | A smaller slice of the exchange, for income. | You aren't comfortable with commodity price swings. |
| Backup identification | Identifying more than one option within the 45-day rules. | Almost always, to protect the exchange. | Rarely: we'll discuss the identification rules. |

Every strategy depends on your situation. Please confirm the tax side with your CPA and qualified intermediary.

## Wherever you are in your exchange

- **Planning a sale.** We plan the timing, the equity and debt to replace, and the types of DSTs that could fit before your property is listed. [Estimate your tax deferral](https://baker1031.com/tools/1031-tax-deferral-calculator)
- **In escrow.** We line up options that match your expected proceeds before the 45-day identification period begins. [Find your deadlines](https://baker1031.com/tools/1031-exchange-deadline-calculator)
- **Sale recently closed.** We focus on offerings that are already acquired and available, so you can identify with confidence and close efficiently. [See available offerings](https://baker1031.com/invest)
- **Stepping back from management.** In a DST, the sponsor handles management, leasing, and financing. You give up control in exchange, and I'll explain what that means. [What is a DST?](https://baker1031.com/writing/what-is-a-delaware-statutory-trust-dst)
- **Replacing debt.** Many DSTs carry sponsor-arranged financing that can help match the debt paid off at sale, at a level you're comfortable with. [Check for boot](https://baker1031.com/tools/1031-boot-calculator)
- **Diversifying.** We can divide your proceeds across several DSTs by property type, location, and sponsor, within the identification rules. [The identification rules](https://baker1031.com/learn/1031-identification-rules)

## Due diligence: five reviews before i offer anything

My team and I review every new offering and keep reviewing the ones already on my platform. We work with outside auditors in each area. [See statistics from my offering records](https://baker1031.com/data/dst-offerings).

1. Broker-dealer review
2. Investment manager audit
3. Investment offering review
4. Real estate assessment
5. Institutional underwriting

More: [Inside my due diligence process](https://baker1031.com/writing/inside-my-due-diligence-process)

## About Jerry Baker

I grew up in an entrepreneurial family in Birmingham, Michigan, a small town north of Detroit.

I studied applied mathematics and applied statistics at Babson College. That training still shapes how I look at an offering: the numbers come first, and every assumption gets tested.

I spent my career on the acquisition, management, and development sides of real estate. I worked at ValueRock Realty Partners, Faris Lee Investments, Westport Capital Partners, and Arbor Bay Capital Partners. Over that time, I've been involved in more than $10 billion of real estate investment activity.

I founded Baker 1031 Investments to help investors build 1031 exchange solutions around their income needs, financial goals, and exchange requirements. I've been on your side of the table, buying and managing property, and I work that way. You can read a shorter version on my [About page](https://baker1031.com/about).

### Notable projects

- **Mall redevelopment.** The redevelopment of a mall in Orange County, California.
- **JFK animal processing facility.** An animal processing facility for John F. Kennedy International Airport.
- **SkyBridge Opportunity Zone REIT.** One of the first Opportunity Zone funds structured as a REIT.

## Licenses, recognition, and writing

- **Education:** Babson College: applied mathematics and applied statistics
- **Licenses:** FINRA Series 22 (Direct Participation Programs Representative), Series 63 (Uniform Securities Agent State Law), and the Securities Industry Essentials (SIE) exam. Registered representative of Aurora Securities, Inc., member FINRA/SIPC, CRD #7537416. [See my record on FINRA BrokerCheck](https://brokercheck.finra.org/individual/summary/7537416)
- **Recognition:** Named a top commercial real estate industry leader by GlobeSt (2026)
- **Writing:** [My articles on DSTs, 721 exchanges, and due diligence](https://baker1031.com/writing) and [the Learn guides](https://baker1031.com/learn/dst-guide)
- **Offices:** San Francisco (1700 Montgomery St) and Los Angeles (El Segundo)

## Frequently asked questions

### How do you get paid?

I'm paid by the sponsor through Aurora Securities when you invest, as disclosed in each offering's private placement memorandum. You don't pay me a separate fee.

### Do I need to be an accredited investor?

Most DSTs are offered only to accredited investors, generally people with more than $1 million in net worth (not counting their home), or income above $200,000 ($300,000 with a spouse) in each of the last two years. I'll confirm eligibility with you early.

### How early should I call you?

As early as you can. Calling before you list your property gives us time to plan the debt, the timing, and the options before your 45-day identification period starts.

### Will you work with my CPA and qualified intermediary?

Yes. I coordinate with both. Your CPA confirms the tax side, and your qualified intermediary holds and sends the exchange funds.

### My sale already closed. Is it too late?

Not if you're still within your 45 days. The offerings I show you are already acquired, so with complete paperwork, funding, and approvals, closing can often take two to three business days.

### What if a DST isn't right for me?

Then I'll say so. Some investors are better served by buying a property directly, keeping what they own, or paying the tax. My job is to help you decide, not to sell you.

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Securities are offered through Aurora Securities, Inc., member FINRA/SIPC. Baker 1031 Investments, LLC is independent of Aurora Securities, Inc. and is not a registered broker-dealer or investment adviser. This content is general education, not investment, tax, or legal advice, and is not an offer to buy or sell securities. Offers are made only through the offering documents to eligible investors, generally accredited investors. DST interests are illiquid, distributions are not guaranteed, and you can lose your entire investment.

Contact: Jerry Baker, Baker 1031 Investments · hello@baker1031.com · (415) 965-0552 · https://baker1031.com/contact