De-Risking a 1031 Exchange

About this goal

1031 exchanges can be risky. Luckily, there are some easy ways to mitigate risk if the other side plays ball (hint: we will).

Key Considerations

  • Do you know your investment criteria so you can refine your replacement property search?
  • Have you found your replacement property?
  • Will you be able to get it under contract—and get favorable pricing?
  • Do you have back-up replacement property options in case things don’t work out with your primary target?
  • Have you considered other options to defer taxes and receive recurring income?
Tip
Most 1031 exchange problems are the result of being rushed—an unexciting replacement property, or missing issues because of rushed due diligence. When time is on your side, you increase the odds of a great outcome.

1031-exchange-friendly options and some smart alternatives

Sell now as-is—or later for more—as part of your 1031 exchange.

  • If your property has upside potential—and you want to increase its value through physical or operational improvements—we can form a Partnership. When the project is completed, we can refinance and hold, or you can sell and complete an exchange. This gives you (a lot of) time to find your replacement property.

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Defer taxes, increase income, and reduce ownership headaches—while skipping the 1031 exchange risks.

  • Our Installment Sale is a sale, but instead of receiving all of the cash at closing, you can earn more and defer taxes by taking payments over time—without the hassles and expenses of ownership. And, with an interest-only note, you can defer capital gains taxes indefinitely.

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  • Our Ground/Master Lease removes almost all of the hassles, expenses, and liability of owning rental property. Choose your lease duration and enjoy zero vacancy and turnover costs.

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Have a question or want to discuss options with an expert?  

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