Defer Capital Gains Taxes
Opportunity Zone Funds
Defer real estate and non-real estate capital gain taxes. Invest your taxable gain alongside leading institutions in personalized, diversified real estate portfolios designed for income generation, tax deferral, and value appreciation.
Why do experienced investors choose Opportunity Zone Funds?
While many real estate investors rely on 1031 Exchanges, they often overlook Opportunity Zone Funds. These funds offer powerful tax advantages specifically designed to solve the unique challenges that direct property ownership and exchanges present.
Realized Capital Gains
If an investor sells stocks, bonds, real estate, a business, artwork, jewelry, or any other capital asset and incurs a taxable capital gain. Use Opportunity Zone Funds to defer and potentially eliminate the tax liability on that gain.
Failed 1031 Exchange
If an investor sells property intending a 1031 exchange but cannot identify or acquire suitable replacement property within the strict deadlines, investing the capital gains into a QOF within 180 days of the sale can still provide tax deferral, avoiding immediate tax liability.
High LTV 1031 Exchange
When selling a property with a very high loan-to-value, finding replacement financing to fully defer taxes in a 1031 exchange can be difficult. Using a QOF offers a way to defer tax on the gain without the immediate pressure of matching the debt on the replacement property.
Your 1031 Exchange.
Our Solutions.
Unleash your 1031 Exchange's potential by exploring opportunities to diversify your real estate portfolio, improve the quality of your holdings, and stop managing properties yourself—all without sacrificing potential income and value appreciation. Work with us to invest your 1031 Exchange proceeds alongside leading institutions into personalized, diversified portfolios of properties designed for income generation and overall value appreciation.
Powerful Tax Incentives
Opportunity Zone Funds provide a compelling tax-advantaged investment vehicle designed to spur economic growth in designated distressed communities. By reinvesting capital gains into these funds, investors can defer paying taxes on those gains until the end of 2026 or until they sell their fund investment, whichever comes first. This deferral allows for the immediate reinvestment of the full pre-tax gain, maximizing the capital at work.
To address the looming 2026 tax bill on the deferred gains, some funds plan to refinance their underlying properties to provide investors with a tax-free cash distribution to help cover the liability.
The most significant benefit comes from holding the investment for at least ten years; in this scenario, any appreciation in the Opportunity Zone Fund investment itself is entirely tax-free.
Save A Failed 1031 Exchange
If your 1031 exchange fails, you can still defer capital gains taxes by investing in an Opportunity Zone Fund. This serves as a valuable "rescue" because you have 180 days from the date of the original property sale to roll your gains into the fund. For example, if you miss the 45-day deadline to identify a replacement property in your 1031 exchange, you still have the remaining 135 days of that original 180-day window to invest in an Opportunity Zone Fund and successfully postpone your tax liability. A significant advantage of this strategy is that, unlike a 1031 exchange which requires you to reinvest the entire sale proceeds, an Opportunity Zone investment only requires you to roll over the capital gain portion, freeing up your original principal for other uses.
1031 Exchange Alternative :: No Loan Required
For real estate investors selling a property with a high loan-to-value (LTV) ratio, a 1031 exchange can be challenging because it requires them to find a replacement property and assume an equal or greater amount of debt to fully defer capital gains. Securing a new high-LTV loan can be difficult, potentially causing the exchange to fail. An Opportunity Zone fund offers a strategic solution by requiring only the capital gain from the sale to be reinvested, not the entire proceeds, thereby eliminating the need to replace the original property's debt and providing a viable path to tax deferral.
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Work with Baker 1031 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.
We strategically partner with leading real estate institutional investors, including:
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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 is independent of ASI. To access Aurora Securities’ Form Customer Relationship Summary (CRS), please click HERE. Baker 1031 Investments and ASI do not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstances.
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