1031 Exchange San Diego

We are an industry leader in facilitating 1031 exchange transactions. Our experienced team has a proven track-record of successfully guiding clients through the delicate and nuanced 1031 exchange transaction process.


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    Apartment Lender San Diego

    What is a 1031 Exchange?

    An exchange is rarely a swap of properties between two parties. 1031 Exchanges are not really exchanges in the context of a two-party barter. A properly structured 1031 ‘LIKE-KIND’ EXCHANGE allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes.

    IRS Section 1031 (a)(1) states: “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment.”


    Exchange a smaller apartment building into a larger apartment complex

    Exchange an apartment building into a net-leased or other passive / hands-free-type investment

    Exchange an apartment building into a Delaware Statutory Trust (DST)

    Types of 1031 Exchanges

    Delayed / Forward
    (most common)


    Improvement Exchange

    Benefits of a 1031 Exchange


    Through property appreciation and funds saved by deferring capital gains, investors are able to have increased funds available for the purchase of a larger property.


    Investors can expand their portfolio by purchasing a variety of different product-types (retail, office, net-leased) often times purchasing multiple properties in several markets throughout the country.


    Investors can sell smaller properties and purchase one larger property to maximize economies of scale benefits along with minimizing management responsibilities.

    Increase Cash Flow

    Investors can sell a property that is producing little or no income (raw land or smaller income property) and purchase a property (s) that allow for greater cash flow performance.

    Management Relief

    Investors that own several rental properties are often faced with the burdens of intensive management and costly maintenance issues. Investors with high-maintenance and management-intensive properties can reinvest into properties requiring little or no management (net-leased and/or other passive hands-free-type properties).

    Increase Depreciation

    Investors can exchange from a non-depreciable property (such as raw land) or fully depreciated assets into an income-producing property that can be depreciated.

    Estate Planning

    Investors can protect equity accumulation and maintain their equity position through the 1031 exchange process by selling assets that have substantial equity growth into conservative assets that will allow for cash flow and the preservation of wealth.

    Defer Capital Gains Tax

    The main benefit of executing a 1031 exchange, other than simply selling one property and buying another is the tax deferral. If executed properly, a 1031 exchange allows you to defer 100% of capital gains tax.