1031 Exchange Rules & Resources
Download our FREE guides to learn more about 1031 Exchanges, how they work, and 1031 Exchange rules. And don’t forget to check out our blog articles below to stay on top of different 1031 Exchange options and investor tips.
1031 Exchange FAQ
Here are a handful of frequently asked questions related to 1031 exchanges. See our 1031 Exchange FAQ to learn more.
As defined by the SEC, an accredited investor is an individual who has either a $1 million net worth excluding their primary residence or $200,000 of income individually or $300,000 joint income for each of the last two years with a reasonable expectation for the same in the current year.
DSTs are held for anywhere between 3 – 10 years. Should investors want to exchange out of the property, conservatively, the DST property should be held for a minimum of two years. Typically, the DST loan’s prepayment penalties become palatable after year 3. DSTs with debt in place are not allowed to refinance, as such with 10-year fixed rate commercial debt, 10 years becomes the maximum hold period.
Should you be interested in selling your position in a DST, there is a mechanism to do so. However, it cannot be guaranteed that you will be able to sell the DST investment, nor receive your entire investment back unless the market conditions support it.
1031 Blog Articles
1031 Exchanges have become increasingly popular with savvy real estate investors looking to reduce tax, transition to passive management, and maximize return potential on investment equity. Learn more about 1031 Exchange rules and strategies to help you plan the transition with your investment property.
Investment property owners generally own one property type, in one geographic area. The reasoning behind this approach is understandable – owners develop a proficiency acquiring and managing a particular property type, such as residential rentals or multi-family properties,
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A conversation we frequently have with clients when evaluating Delaware Statutory Trust (“DST”) 1031 exchange replacement property options is whether they should “assume” more debt than the debt currently on the property they are exchanging. The answer to
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