What Is A 1031 Exchange & Should You Use One?

One of the biggest real estate investing advantages is the tax savings it can produce and many investors will use a 1031 Exchange to save big on this.

In this video, Brandon Turner shares his insights on 1031 Exchanges to help you determine what it is, and should you use one for your real estate investment strategy?

@biggerpockets
@beardybrandon

[Alessandro]

I like how you kept it simple and straight to the point. This is the reason why I love listening to different real estate pros. Everyone has their own personal approach to explaining this oh so many, laws and guidelines, and tips, that we can sometimes miss.

[BradSabako]

I believe you have 45 days to identify up to 3 properties, then 180 days to close on one of them. The debt rule is also tricky(I won't complicate my comment with these details, but this is a further complication), so make sure you have a good accountant to help you walk through this and a good title company who has a
1031 intermediary to exchange the property without breaking the rules.

[SteveRam]

YES! BUT ONLY IF YOU PLAN TO REINVEST “ALL” THE MONEY! IT’LL HELP YOU AVOID THE TAXES, BUT HAS TO ALL BE REINVESTED.

[adamwitek]

I love how you broke this down. So easy to understand!

[Frommilitarytomillionaire]

Another grest video guys! Everyone Ive talked to said that a 1031 was a pain in the butt...but I dont think any of them have said they regretted doing it. So it is worth the complicated process and I look forward to doing my first 1031 in the next year or two!

[TheGuide]

Great video! One extra tip...

While it's often said you must buy a more expensive property, it really comes down to matching or exceeding the sale value to avoid any taxable “boot.” And don't underestimate that 45-day window—having a backup plan (like exploring DST options) can save you from hasty decisions. Happy investing!

[Evolve]

That's why I love Brandon! I've watched a few videos and this way of high overview explanation explained a lot more than the other videos I've watched. Good show!

[meganfrancescon]

More people should yell when they explain things. Its the only way I retain information : ). Great stuff!

[michaelcostaphoto]

Delaware statutory trust. Learn something new every day. Thank you!

[CajunMojo]

Thank you, my CPA just told me I should look into a 1031 Exchange and I had no idea what is was. Your video made it clear, thank you.

[CoachDomCosta]

Thank you for sharing this! This type of exchange helped me get into my home that I now live in and helped me acquire a four unit rental property that I still own! Thank you for sharing this!!!

[SterlingWhiteRealEstate]

1:03 031 Exchange is a way to defer tax payments at a later time... and possibly defer them forever.

[CraigAGreen-niuz]

Thanks for keeping it "Plain & Simple" - Love your exit music!

[herbertmcgurk]

Branden you are very entertaining and speak to be understood! This was a great refresher course and appreciate you throwing it out there! Great way to build wealth!

[hlhl]

If my uncle calls me champ, I'm throwing bows

[fusion]

very informative - thanks! Now I just need to figure out how to start...

[KadeersTV]

Very Informative & Well Explained.
Thank You.

Kadeers!!!

[vestor]

It so hard for me to wrap my head around carry a massive balance with the IRS.

[RemiproPainters]

BRANDON, So the rules is: property has to be equal or higher value. Can I sell my 300k single family property and buy 3 single family homes at 100ea or it has to be 1 to 1. My 300k to buy a triplex or cuad. Or can I do 6 -50k properties ? Yes ? No?

[marciaplanes]

Here’s a scenario to see if 1031 would be a good fit. If we sell 3 investment properties in Florida and combine the proceeds to purchase a single house in NY, would the rules of 1031 and the time frame constraints be doable? Thank you