Diversification • Income • Estate Planning • Retirement
Real Estate Investment Trusts (REITs)
REITs, or real estate investment trusts, are companies that combine the capital of many investors to acquire or invest in income-producing commercial real estate and related assets.
Investment Strategy Focus
Liquidity
Generates Income
Value Appreciation
Future Planning
Diversification
Tax Benefits
Strategy Overview
Diversification, Liquidity, & Income
There are approximately 150 million Americans invested in REITs through 401(k)s, IRAS, pension plans, and other investment funds. By combining assets that exhibit low correlation (such as REITs), investors can work to reduce portfolio risk without sacrificing return potential. Low or negative correlation means that investments behave differently from each other through changing market environments.
Inflation Hedge: Acquiring income-producing properties with built-in rent increases or the potential to increase rents gives stockholders a unique opportunity to keep up with inflation as well as participate in capital appreciation.
Passive Diversification: REITs can be diversified by property type, location, tenant and/or lease term which can help smooth portfolio risk. REIT investors own interests in income-producing properties but there are no management responsibilities to worry about.
Liquidity: REITs are attractive to many investors today because they can offer more frequent repurchase or redemption options based the current per share NAV.
Explore Available Investment Properties From Baker 1031 Investments
Introducing
The Customized Exchange Platform
A new platform designed for 1031 exchanges ranging from $5 million to $40+ million.
Annualized cash flows of 5.75% to 6.00%+ paid out monthly.
All aspects of exchange coordinated for you
Structured to provide a no-obligation offer to acquire your asset(s) within 1-3 years at pre-agreed price.
721 Exchange: 1031 exchange into a REIT
A 721 exchange exercises a tax provision that allows for the non-recognition of gains when assets are contributed to a partnership in exchange for partnership interests. Leveraging an UPREIT, income-producing property owners may defer taxation of capital gain until partnership interests are redeemed for REIT shares or cash. Shares of the REIT can typically be liquidated at designed times, in accordance with the terms of the REIT.
What is a REIT? REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Some REITs trade on major stock exchanges, and they offer a number of potential benefits to investors.
What is an UPREIT? REITs often hold their portfolio of real estate through an operating partnership, which structure is known as an Umbrella Partnership Real Estate Investment Trust, or UPREIT. This allows holders of real estate to exchange property for economic interests in the REIT in the form of OP Units of the operating partnership by contributing that property via a 721 exchange.
Estate Planning Benefits: Heirs to limited partners may receive a step-up in the tax basis of their limited partnership interests, effectively eliminating the previously deferred U.S. Federal Income Tax on Capital Gains. Heirs have the flexibility to make individual decisions in respect to the sale of their inherited interests, whereas traditional heirs of investment property may require collective decision making.
Retirement Benefits: A redemption program for limited partnership interests may provide more liquidity than other forms of real property ownership and may allow owners to redeem interests in whole or in part, potentially managing periodic taxable gain recognition in alignment with specific financial goals and objectives.
Institutional Investments for Individual Investors
Work with Jerry Baker and Baker 1031 Investments to gain the distinct advantage institutions have in real estate. We bridge the gap by partnering with leading players, giving you access to their opportunities. Diversify your portfolio, upgrade asset quality, eliminate management burdens, and secure attractive, non-recourse financing—all without sacrificing what matters most to individual investors.
Transparent Investment Offerings: Receive due diligence materials upfront, transparent fees and expenses (with no hidden costs), audited financials, and verified Sponsor track records.
Optionality & Flexibility: Investment offerings with flexible holding periods, enhanced tax benefits, unique features, and numerous exit and reinvestment options.
Tax-Advantaged: Benefit from 1031 exchanges, depreciation, cost segregation, depletion allowances, interest expense deductions, and more.
Have you thought about Oil & Gas for your 1031 exchange?
Explore oil & gas to add potentially higher income, new tax benefits, and diversification to your real estate portfolio.
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Call/Text: +1 646 389 1810 | Email: [email protected]
Call/Text: +1 646 389 1810
Email: [email protected]
Baker 1031 Investments • +1 646 389 1810 • [email protected]
The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the Sponsor’s Private Placement Memorandum (PPM) which is solely available to accredited investors and accredited entities. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million dollars exclusive of primary residence) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney.
There are material risks associated with investing in DST properties and real estate securities including liquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potentially adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk. Because investor situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation.
Securities offered through Aurora Securities, Inc. (ASI), member FINRA/SIPC. Baker 1031 Investments (Baker 1031) is independent of ASI. To access Aurora Securities’ Form Customer Relationship Summary (CRS), please click HERE. Baker 1031 Investments, Jerry Baker, and (ASI) do not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstances.
Client examples are hypothetical and for illustration purposes only. Individual results may vary.
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