Are 1031 exchanges a good investment?

The IRS rules for 1031 exchanges are strict, so follow them closely. If done correctly, a 1031 exchange can be a powerful tool for building wealth through real estate investment. Check your rates today with Better Mortgage. The 1031 exchange, while advantageous, is bound by stringent regulations set forth by the IRS.

What is a 1031 exchange?

In a 1031 exchange scenario, you can invest proceeds from the prior property sale into one or more DSTs to achieve diversification. DSTs often hold institutional-quality properties. (An example would be a 300-unit multifamily building located in a secondary market, such as Charleston, Raleigh or Savannah.)

What is a reverse 1031 exchange?

This is called a reverse 1031 exchange and shares many of the same rules and requirements as a normal exchange. By adhering to these timelines and rules, you can successfully complete a 1031 exchange and defer capital gains tax on your investment property.