1031 Exchange

If you’re considering selling property and want to defer or even eliminate the capital gains that may arise from the sale of the property, a 1031 exchange may be an appropriate solution.

The rules and timelines that must be followed for a 1031 exchange are complex and may feel overwhelming. We help make sense of the process and guide you through the exchange so you can walk away feeling confident you’ve made the right decision. We provide access to investments from a number of sponsors who offer replacement properties structured as Delaware statutory trusts (DST). The investments offered by the sponsors include triple net, multi family, office, retail and medical properties among others. We will work with you to review a variety of potential replacement properties and help you select a replacement property(s) that fulfil your exchange requirement and are in line with your financial goals.

Most DST 1031 investment properties have distributions paid to investors, generally on a monthly or quarterly basis. By completing a 1031 exchange, an investor can preserve their equity by deferring taxes and in addition generate income. Investors are also able to diversify their portfolio both geographically and by property type. We have completed 1031 Exchanges for a wide variety of clients, including but not limited to: farmers and ranchers who have sold their land, individuals who have owned rental property and are now ready to take a more passive approach to owning real estate, and small business owners who sell their building(s) at the same time they sell their business.

It is important to remember there are risks with these investments. The actual amount and timing of distributions is not guaranteed and may vary. In addition, investors’ capital is not guaranteed. Additionally, these investments are not liquid, may have declining market values and tenant vacancies, so investors must carefully consider their overall financial situation prior to investing.

Whether you’re thinking about selling a property and want to better understand the 1031 exchange process and investment choices, or if you already sold your property and have the proceeds deposited at a qualified intermediary, we can help.

*DST investments are available to accredited investors only (generally described as having a net worth of over $1 million dollars exclusive of primary residence or income of over $200,000 ($300,000 with spouse if married) for each of the last two years) and accredited entities only.