Investment Real Estate


What is a 1031 Exchange?

A 1031 exchange allows you to sell an investment property and reinvest the proceeds into another like kind property allowing you to defer capital gains tax.

  • You cannot have constructive receipt of the proceeds.  Proceeds from the sale must be held in a third-party escrow account, commonly known as a qualified intermediary. 
  • The properties being exchanged must be considered like-kind in the eyes of the IRS for capital gains taxes to be deferred.
  • If used correctly, there is no limit on how frequently you can 1031 exchange and continue to accumulate wealth tax free.

Important Timelines & Rules:

45 Day Rule:

Once the sale of the property occurs the qualified intermediary will receive the cash from the sale.  You then have 45 calendar days to identify an equal or greater value replacement property or else you pay taxes.

180 Day Rule:

You must close on your replacement property within 180 calendar days of the sale of your old property.

The 3 Property Rule:

Allows for identification of any 3 properties, that’s combined to be equal or greater in value from the property sold.

The 200% Rule:

Allows for the identification of more than 3 properties, as long as the combined value does not exceed 200% of the property value sold.



Why a DST is a Simpler Exchange?


What is a DST? (Delaware Statutory Trust)

A Delaware statutory trust is a separate legal entity created as a trust under Delaware law in which each owner has a beneficial interest for federal income tax purposes and is treated as owning an undivided fractional interest in the property.  In 2004, the IRS released revenue ruling 2004 – 86, which allows the use of a DST to acquire real estate where the beneficial interest in the trust will be treated as direct interest in the replacement property for purposes of conducting 1031 exchanges.


A Tool for Building and Preserving Wealth

Build generational wealth by continuing to reinvest and defer taxes until you pass away.  

  • Federal Capital Gains Tax
  • State Capital Gains Tax
  • Depreciation Recapture Tax
  • Net Investment Tax

Upon death, heirs will receive a step up in cost basis eliminating taxes.


The Ease of Estate Planning

A DST creates an intentional estate planning road map, which enables investors to pass down generational real estate wealth to their families upon their passing. 

  • Heirs will take over professionally managed passive real estate vs actively managed rentals
    • Ex: Heirs are in high school, live out of state or not interested in managing real estate.

The DST: A multifaceted solution

 The ultimate Retirement/Exit strategy for tired landlords. (Tired of Tenants, Toilets, & Trash?)

  • Gain access to institutional professionally managed real estate.
  •  Generate passive income.
  • Build generational wealth by continuing to reinvest.  
  • Heirs will receive a step up in cost basis eliminating taxes.

Backup Option

  • Can identify a DST within the 45-day window in case a traditional 1031 falls through.
  • Save taxes if a deal falls apart on day 44.

Left Over Equity

  • Any equity leftover from the sale of an investment property that cannot be replaced at equal or greater than value can be reinvested in the DST to save taxes!
  • Example: $1M sale, ID an $800K replacement property…$200K can be invested in DST to fulfill the equal or greater than value 1031 rule. An investor can be passive and active at the same time.

Replacing Debt

  • DSTs come prepackaged with non-recourse institutional financing that can replace an investors debt obligation when completing a 1031 exchange.
  • The ability to sell, complete a 1031 without needing to qualify for a loan or take on a higher interest rate.

Explore the 1031 DST

Your Roadmap to Financial Growth

Investment Property Analysis

Investment Property Analysis

Uncover the intricacies of your rental property's performance beyond expenses. Gain clarity on generating tax-efficient cash flow and equity appreciation compared to alternative options. Dive into the nuts and bolts of optimizing your investment.

Schedule 1-on-1 Appointment

Schedule 1-on-1 Appointment

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Attend a Dynamic Dinner Seminar

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Claim Your Free 1031 Exchange Book

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