The strategies we place for accredited investors — each profiled in the same format: how it works, the numbers, benefits, risks, and how it compares. Start with the strategy that matches your situation.
Tax treatment is only one part of the decision.
A strategy should be tested against the full set of constraints: whether the asset is eligible for the intended tax treatment, how much liquidity is available, what income is realistic, how much leverage is used, who controls the property, and what happens at the end of the hold. A 1031 exchange may defer tax without eliminating it; a 721 contribution can change the form of ownership; and an Opportunity Zone investment follows a different statutory framework from a like-kind exchange.
For DSTs, review the underlying real estate, tenant concentration, debt maturity, reserves, fees, distribution assumptions, and exit language. For mineral and royalty interests, review title, production history, operator concentration, depletion, commodity exposure, and the nature of the interest being acquired. For REITs and UPREITs, review liquidity, valuation, leverage, dilution, distributions, and the rights attached to the operating-partnership units.
The cards below are research starting points, not a ranking. Match the strategy to your exchange timeline and personal objectives, then read the primary documents and confirm tax treatment with your own advisers. The methodology, due-diligence process, and FAQ explain how Baker 1031 frames the comparison.
Keep the gain working.
Passive, fractional 1031-eligible ownership of institutional real estate. Rev. Rul. 2004-86; $25K+ minimums.
The foundational tax-deferral tool: sell investment property, reinvest like-kind, defer capital gains and recapture.
Contribute property or DST interests for REIT operating-partnership units — diversification and estate simplicity, one-way door.
Defer any capital gain and pursue potentially tax-free appreciation after a ten-year hold in a Qualified Opportunity Fund.
Beyond the exchange.
Cost-free production revenue treated as real property — 1031-eligible income uncorrelated with traditional sectors.
Diversified, professionally managed real estate income — public, non-traded, and private structures compared.
Sixteen sector profiles — multifamily to mineral royalties — with what drives income, growth, and risk in each.
Securities offered through Aurora Securities, Inc. (ASI) — CRD #46147, SEC #8-51322 — member FINRA/SIPC. Gerald F. 'Jerry' Baker, III is a registered representative of ASI (FINRA CRD #7537416). Baker 1031 Investments, LLC is independent of ASI and is not a registered broker-dealer or investment adviser. This page is informational only and is not an offer to sell or a solicitation of an offer to buy any security, or tax or legal advice; any offer is made solely through a sponsor's private placement memorandum following a suitability determination. DST and related securities are speculative and illiquid, for accredited investors only, and involve substantial risk including possible loss of principal.
Current-law source reviewed July 11, 2026: IRS Opportunity Zone guidance and IRS Notice 2026-40. Opportunity Zone benefits are conditional, time-sensitive, and dependent on the QOF, the taxpayer, the holding period, and current law; confirm the details with your CPA and attorney.