Why An Exchange?

Why Consider a 1031 Exchange?

A 1031 Exchange isn’t just about deferring taxes – it’s a strategic tool for real estate investors looking to build long-term wealth, reduce management burdens, and reposition their portfolios.

Whether you're selling appreciated property, looking to consolidate or diversify holdings, or planning for retirement, a 1031 Exchange can help you stay invested while keeping more of your equity working for you.

Key Benefits of a 1031 Exchange

Tax Deferral
By reinvesting the proceeds from the sale of investment real estate into a qualifying replacement property, you can defer all taxes—potentially saving tens or even hundreds of thousands of dollars in the short term.

Potential for Tax-Advantaged Monthly Cash Flow
Depending on your replacement strategy, you may be able to generate passive monthly income that is partially or entirely tax advantaged.

Potential for Wealth Preservation
A properly executed 1031 Exchange can support long-term wealth preservation, particularly when combined with estate planning. Upon death, heirs receive a step-up in cost basis, effectively eliminating deferred taxes in many cases.

1031 Exchange Replacement Options
You have a range of options when selecting replacement property in a 1031 Exchange. These may include:

  • Direct ownership of another rental property

  • Triple-net (NNN) leased commercial real estate

  • Delaware Statutory Trusts (DSTs) – passive, fractional ownership in institutional-quality properties

  • Tenant-in-common (TIC) structures

Each option has its own risk, return, and liquidity considerations.

Learn more about DSTs as a 1031 Exchange option

Ready to Explore Your 1031 Exchange Options?

Let’s talk through your real estate goals and see if a 1031 Exchange is the right move.

Review the key timelines, requirements, and next steps for executing a successful exchange.