Defer Taxes,
Multiply Wealth
Sell an investment property and reinvest the proceeds into a like-kind property, deferring all capital gains taxes. One of the most powerful wealth-building tools in real estate.
Day ID Period
To identify properties
Day Exchange
To close the deal
Unlimited
Repeat forever
The 1031 Exchange Process
Follow the timeline below to understand each critical phase of a successful exchange.
Sell Your Property
List and sell your current investment property. Before closing, engage a Qualified Intermediary (QI) to hold the proceeds. You must not touch the funds directly.
Sell Your Property
List and sell your current investment property. Before closing, engage a Qualified Intermediary (QI) to hold the proceeds.
Sale closes, clock starts
Miss this and the exchange fails
Identify Replacement
Within 45 days, formally identify up to 3 potential replacement properties in writing to your QI.
Identify Replacement
Within 45 days, formally identify up to 3 potential replacement properties in writing to your Qualified Intermediary. This deadline is strict and cannot be extended.
Negotiate & Inspect
Perform due diligence on the replacement property. Negotiate terms, conduct inspections, arrange financing. Your QI holds the funds throughout this process.
Negotiate & Inspect
Perform due diligence on the replacement property. Negotiate, inspect, arrange financing.
Take your time, but watch the clock
Close and defer all taxes
Close & Defer Taxes
Close on the replacement property within 180 days. The QI transfers funds directly. All capital gains are deferred.
Close & Defer Taxes
Close on the replacement property within 180 days. The QI transfers funds directly to the closing agent. All capital gains taxes are deferred indefinitely. You can repeat this process forever.
Live Example: Property Swap
See how a 1031 exchange lets you trade up to a better property without losing capital to taxes.
Duplex - Austin, TX
1031 Exchange
Tax owed: $0
You save $47,600
8-Unit Apartment - Dallas, TX
Who Benefits from a 1031 Exchange?
Whether you're a seasoned investor or just getting started, tax-deferred exchanges can accelerate your growth.
Rental Property Owners
Trade up from a single-family rental to a multi-unit apartment building without losing equity to taxes.
Commercial Investors
Diversify from office to retail or industrial properties while deferring all capital gains.
Relocating Investors
Sell property in one state and buy in another — 1031 exchanges work across all 50 states.
How Much Do You Save?
Compare selling outright vs. using a 1031 exchange. The difference compounds over time.
Sell Outright
1031 Exchange
$51,400 more working capital
Why Use a 1031 Exchange?
Defer Capital Gains
Avoid paying 15-20% capital gains tax plus state taxes on appreciated investment properties.
Upgrade Properties
Trade up to higher-value properties without losing capital to taxes along the way.
Diversify Holdings
Exchange one property for multiple, spreading risk across geographies and asset types.
Ready to Start Your 1031 Exchange?
Our team will guide you through every step of the exchange process.
Speak to an Advisor