Smart Investments,
Tax Advantages
A 1031 exchange allows you to defer capital gains taxes when selling investment property by reinvesting proceeds into like-kind property. Our expertise ensures your exchange is executed flawlessly.
Tax Deferral
Defer 100% of capital gains taxes by reinvesting proceeds into like-kind replacement property.
Portfolio Growth
Use deferred tax dollars to invest in larger, better-performing properties.
Timeline Management
Expert coordination to meet the strict 45-day and 180-day IRS deadlines.
Risk Mitigation
Proper structuring to ensure your exchange qualifies for full tax deferral.
What Is a 1031 Exchange?
Named after Section 1031 of the IRS tax code, this powerful strategy allows investors to defer capital gains taxes indefinitely by exchanging one investment property for another.
When you sell an investment property, you typically owe federal and state capital gains taxes on the profit. A 1031 exchange allows you to reinvest that full amount into a new property, keeping your investment working for you.
Key requirements for a successful exchange:
- Property must be held for investment or business use
- Replacement property must be of equal or greater value
- All proceeds must go through a qualified intermediary
- 45 days to identify replacement property
- 180 days to close on replacement property
- Same taxpayer must be on both transactions
Exchange Timeline
Day 0
Property Sold
Sale closes, funds go to qualified intermediary
Day 45
Identification Deadline
Must identify up to 3 replacement properties
Day 180
Exchange Deadline
Must close on replacement property
Types of 1031 Exchanges
Different situations call for different exchange structures. We help you determine which type best fits your investment strategy.
Delayed Exchange
The most common type. You sell your property first, then acquire the replacement within 180 days. Proceeds are held by a qualified intermediary.
Best for: Most investors
Simultaneous Exchange
Both properties close on the same day. While simpler in concept, coordination challenges make this less common in practice.
Best for: Pre-arranged swaps
Reverse Exchange
You acquire the replacement property before selling your current property. More complex and expensive, but offers certainty on the replacement.
Best for: Competitive markets
Improvement Exchange
Also called a construction or build-to-suit exchange. The replacement property is improved using exchange funds before you take title.
Best for: Value-add investors
Partial Exchange
You defer some gains while taking some cash ("boot"). Taxes are owed only on the boot received, not the full gain.
Best for: Flexibility needs
DST Exchange
Exchange into a Delaware Statutory Trust for fractional ownership of institutional-grade properties with passive income.
Best for: Passive investors
How We Execute Your 1031 Exchange
Our proven process ensures your exchange meets all IRS requirements while maximizing your investment potential. We handle the complexity so you can focus on building wealth.
Investment Analysis
We analyze your current property, investment goals, and timeline to determine if a 1031 exchange is right for you. We'll discuss potential replacement properties and strategies.
Team Assembly
We coordinate with qualified intermediaries, tax advisors, and legal counsel to ensure your exchange is structured properly from the start.
Property Sale
We market and sell your relinquished property, carefully timing the transaction and working with the intermediary to properly receive funds.
Replacement Search
Within the 45-day identification window, we help you find and identify up to three replacement properties that meet your investment criteria.
Property Acquisition
We negotiate and close on your replacement property within the 180-day exchange period, ensuring all requirements are met for tax deferral.
Portfolio Growth
With your exchange complete, you've preserved your capital and upgraded your investment. We continue to monitor opportunities for your portfolio.
From Duplex to Apartment Complex
The Challenge
Our clients owned a duplex in Los Angeles purchased 15 years ago for $450,000. Now worth $1.2M, they wanted to grow their portfolio but faced $150,000+ in capital gains taxes if they sold traditionally.
Our Solution
We structured a 1031 exchange into a 12-unit apartment complex in a growing market. The full $1.2M was reinvested, deferring all taxes and tripling their monthly cash flow.
$150K+
Taxes Deferred
3x
Cash Flow Increase
12
Units Acquired
Is a 1031 Exchange Right For You?
Every investor's situation is unique. Let's discuss your goals, timeline, and options in a complimentary consultation.
Planning Ahead
Ideally, contact us 3-6 months before selling to explore all options.
Expert Coordination
We work with top qualified intermediaries and tax professionals.
Property Network
Access to off-market opportunities that meet exchange requirements.
Request a Consultation
Tell us about your investment property and goals.
Questions About 1031 Exchanges? Let's Connect
Our team has the expertise to guide your 1031 exchange from start to finish. We're ready to help you preserve and grow your wealth.
Or call us directly at (213) 262-5092