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.
There comes a time for most investment property owners when actively managing investment property no longer fits their objectives. We write and consult extensively about various options owners have available to them to eliminate active management, each of which has
Owners of investment real estate consider 1031 Exchanges for many reasons. Two of the most common reasons are capitalizing on new opportunities or reducing the risk associated with the current property. The next two articles will compare the potential opportunities
Quality data is the cornerstone of effective decision making. While it is rarely possible to have perfect information, especially regarding future projections such as how long our current market cycle will last, owners can and should have a firm grasp
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, and want
Unintended Consequences of Seattle City Council’s Proposed Changes to “Notice of Intent to Sell” Ordinance.
The Seattle City Council continues to propose new legislation and amend existing landlord-tenant laws under the premise of addressing housing affordability. At face value, the stated motivation by the City Council is noble; increasing the available supply of affordable housing
Successful real estate investors come from a wide variety of backgrounds and employ an assortment of investment techniques. All have their own unique approach to owning, managing and selling assets. However, I believe successful investors have one common element: a
Real estate ownership has the potential to present a tremendous opportunity for individuals to grow their net worth through time, value-add work, and smart management. Every year, we work with dozens of owners who have acquired and managed multiple investment
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 this question
Primary residence home ownership has long been supported by the Federal Government. Homeowners benefit from tax incentives such as the mortgage interest deduction and lending programs like the FHA First Time Homebuyer Program. Additionally, the IRS Section 121 exemption allows
Investment real estate presents a tremendous opportunity for individuals to grow their net worth through time, value-add work and smart management. We have worked with dozens of clients who have acquired and managed multiple investment properties while maintaining their day-jobs.
Often owners of investment real estate find themselves in situations in which they are “property rich and cash poor.” Thus, when contemplating a tax-deferred 1031 exchange owners often ask about ways to “unlock” equity in their property and receive a
Co-ownership structure issues are one of the most common stumbling points for 1031 exchanges, however this need not be the case. With proper understanding and planning, most co-ownership structures can be worked through to satisfy the co-owner’s respective investment objectives.