If you’ve spent more than five minutes around real estate investors, you’ve probably heard someone throw out the term “1031 exchange” like it’s just another Tuesday. But if you're new to the game (or just haven't waded into that part of the pool yet), it can sound a little mysterious—maybe even intimidating.

So let’s break it down. No legal jargon. No tax advice. Just the basics, with a side of charm.

What Is a 1031 Exchange?

In short: a 1031 exchange is a way for investors to **defer capital gains taxes** when they sell one investment property and purchase another “like-kind” property. It’s named after Section 1031 of the IRS code, and it’s been around for decades as a way to encourage continued investment in real estate.

And no, “like-kind” doesn’t mean you have to trade a condo for a condo or a farmhouse for a farmhouse. It’s surprisingly flexible. Think more “investment real estate for other investment real estate” than “two identical duplexes.”

Why Investors Like It

The big draw? **Tax deferral**. When structured properly, a 1031 exchange can allow you to roll your gains from one property into another without immediately paying capital gains tax. That means more capital working for you, more leverage, and potentially more long-term growth.

But here's the key: it’s not a free-for-all. There are specific timelines and rules to follow. Miss a step, and the IRS won’t be sending you a thank-you note.

A Few (Non-Advisory) Things to Know

1. Timing is everything. You typically have 45 days to identify your new property and 180 days to close. So planning ahead is a must.
2. You’ll want a Qualified Intermediary. They’re the neutral third party who holds your sale proceeds and facilitates the exchange. Spoiler alert: you can’t just pocket the cash in between deals.
3. This isn’t for primary residences. 1031 exchanges apply to investment or business-use property only.

Again, this isn’t legal or tax advice—just some friendly, high-level info. (Your CPA and tax attorney will thank me.)

How I Can Help

As a Realtor with experience in investment properties and a deep love for spreadsheets (don’t judge), I can help you identify potential 1031 opportunities, navigate the market, and time your transactions to fit within the required windows.

Need a team? I’ve worked alongside great tax pros and exchange facilitators who know their stuff—and I’m happy to connect the dots.

Curious About 1031 Exchanges?

Let’s chat about your investment goals, your ideal timeline, and what your next move could look like. I’ll bring the market knowledge—you bring the coffee. No pressure, no jargon, just real estate with a plan.