1031 Exchanges Explained

1031 Exchanges Explained // If you own any kind of real estate investment property, have built up equity in your property, and have explored a sale of that property, someone has likely mentioned to you some of the benefits of a 1031 tax-deferred exchange. But what exactly is a 1031 exchange in real estate, and what are the steps involved?

If you're thinking about doing a 1031 exchange when you sell your next real estate investment property and you want to know the details of how that's done, make sure to stick around for this video.

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[BreakIntoCRE]

Have you ever done a 1031 exchange? If so, what was your experience like? Let me know in the comments - thanks for watching!

[jimross]

Actually, 1031 exchanges are not solely for commercial real estate, they are also possible for other investment properties (but not your personal residence) such as single-family rentals and 1-4 unit rentals/apartments.

[kenyanfurnishedrentalsllc]

Thanks. This was very well explained.

[TheSonofaMike]

Best video for 1031 exchange. Thanks for the clear explanation of the process

[thevalhallagroup]

Great video! Short, sweet, and to the point.

[itsallgoodbro]

There’s always something to learn in all your videos 👍👍

[jaromejordan]

Which degree is better, or (preferred) for a career in real estate Investment Finance degree or Accounting?

[Mohamedhassan-felm]

Great experience and short explanation! Thank you

[sf]

Thanks for this. Can the investor take out his original equity from the sale proceeds? Or 1031 requires investment of both partner equity and profit?

[pj]

Say you have worked your way up to a great amount of money that you are happy with and you want out, how difficult is it to pull out of your 1031 exchange and "cash out"?

[robertcurtis]

Great information, look forward to more 1031 videos

[twilfits]

Is the 1031 exchange exclusive to rentals?
If so what's the minimum time renting?
Is this a deferment?
- subject to added fees?
- how long is it defered?
Thank you.

[mzanette]

can you trade a rental property into a primary residence property?

[sincerrre]

so can you recoup your initial investment amount and reinvest the gain amount only into the next property?

[nelsoncopo]

DO REPAIRS ON THOSE PURCHASED PROPERTIES COUNT AS PART OF TAX DEFERRED BENEFIT?

[julian]

@Break Into CRE  what's due? The amount of taxes that needs to be taken out of the last sale, or does that mean you have to pay taxes on all the properties you've done a 1031 exchange on in the past? So say you've done a 1031 exchange 10 times, and on the 11th you just sell. Do you have to pay taxes on all other 10 properties you've used this method on, or only for the 11th property that was sold?

[quest]

Is the intermediary that holds the money, the same as a "custodian". If not which one needs to be bonded & Secured?

[johngrubb]

In the event of a sale, am I amble to distribute earnings to my investors? How can one maintain their IRR for their investors, if all of the gains must be reinvested into the next property?

[garyluong]

Am I limited to closing on 1 (or all 3) of the 3 properties I've identified within the 45 days? What if all offers are rejected and I've exceeded the 45 day mark? TIA for the advice!

[jessicasingh]

Hi! Thank you for encouraging me to look into this. I am planning to go through my very first 1031 by selling my investment property next month. I am afraid I may not find a renter for the new investment property with the virus situation. Can I move in the property after 6 months(I don't own a home so I can move) if this happens? or I just need to keep reducing rent even if I am not able to cover my mortgage payment with the rent. Your answer helps me make one of the big decisions. Thank you!