1031 Exchange: Navigating Your Way to Wealth
We demystify the 1031 exchange—explaining how it works, highlighting its key benefits, and showing you how to use it to grow your real estate portfolio while keeping more of your capital working for you.
Whether you're a seasoned investor or new to the game, understanding the strategic advantages of a 1031 exchange can be a powerful tool for building long-term wealth.
6 Reasons Smart Investors Choose 1031 Exchanges
Build Wealth
Deferring capital gains taxes allows investors to reinvest more capital into higher-value properties, facilitating increased wealth accumulation.
Improve Cash Flow
Investors can exchange properties for those with higher rental income, enhancing their monthly cash flow.
Purchase Power
By deferring taxes, investors can utilize the full sales proceeds to acquire more valuable or additional real estate assets.
Diversify Real Estate Portfolio
A 1031 exchange enables diversification by allowing investors to trade properties in different markets or sectors, reducing risk.
Preservation of Equity
Deferring taxes helps preserve equity from property sales, allowing for reinvestment into new properties without losing capital.
Estate Planning
Properties passed to heirs may receive a step-up in basis, allowing them to avoid capital gains taxes, thus preserving wealth for future generations.
The Many Faces of 1031 Success
Our monthly spotlight of the wide range of people and entities who are using this powerful tax strategy to build wealth.
Agility in Acquisition: How Reverse 1031 Exchanges Secure the Perfect Deal
A reverse 1031 exchange lets you buy replacement property first while deferring capital gains tax—but the structure must exist before you close on the new asset.
Securing Land Before You Sell: The Reverse Exchange Guide for Developers
Buy replacement property before your sale closes using a reverse 1031 exchange. The EAT takes title first—engage your QI before signing the purchase contract.
How to Create a Back-Up Plan for Your Replacement Property
After Day 45, you typically can't add new properties. Protect your exchange by identifying 2-3 realistic backups using the 3-Property Rule and setting checkpoints at Days 15, 30, 40, 44.
The Investor’s Roadmap: Aligning Your Sale, Your Timeline, and Your Tax Strategy
Most 1031 Exchanges fail from team misalignment, not complexity. Synchronize your broker, CPA, and QI using a Day -30 roadmap to protect your equity through strict IRS deadlines.
Navigating Non-Safe Harbor Reserve Exchanges in Texas
Reserve language like 'at seller's direction' can disqualify your Texas 1031 exchange by creating constructive receipt, even with a QI. Use this 11-point checklist.