What Is A 1031 Exchange? (in Real Estate)

What Is A 1031 Exchange? (in Real Estate)

The 1031 exchange is one of the most powerful tools an investor can have in their arsenal for building wealth in real estate. It can help you improve your passive income, simplify property and asset management, assist with your estate planning, diversify your portfolio, and so much more. So, let’s dive on in to “What Is A 1031 Exchange?” in the real estate world.


Section 1031 of the IRS Tax Code

The 1031 exchange gets its name from section 1031 of the Tax Codes from the Internal Revenue Service (also known as the IRC). This exchange is more commonly referred to as the “like-kind exchange” whereby you can sell the property that you own, defer capital gains taxes, and transfer that cash into a new property. Essentially, it’s a tax break that allows you to kick the can down the road on paying capital gains taxes, which can be as high as 20% on the gain, and keep that cash in play.


An Example of a 1031 Exchange

Let’s walk through a quick scenario to show you how a 1031 exchange might work.

You bought a shopping center for $250,000 10 years ago and today it is worth $1,000,000. If you sold it and cashed out, you’d be responsible for paying 20% taxes on the gain of $750,000 (today’s value minus your initial basis), which would be approximately $150,000 to the government.

However, you have the opportunity to execute a 1031 exchange and keep that $150,000 in cash in play by identifying a new asset. If you buy the next asset right, you’re getting a return on that cash and snowballing your wealth.


There Are Rules!

It’s absolutely critical that you follow all of the rules of section 1031 of the Internal Revenue Code to ensure that you properly qualify for the tax benefits of a 1031 exchange. These rules include:

  • Identification timelines

  • Valuation guidelines

  • Proper use of a qualified intermediary

  • And more

The 1031 exchange is great but if you don’t follow these rules to a T, there’s a chance you won’t qualify. Dive deeper into 1031 exchanges here:

Featured
CRE Syndications: How the Top 1% Buy Properties Without Lifting a Finger
CRE Syndications: How the Top 1% Buy Properties Without Lifting a Finger

You don’t see high-net-worth investors unclogging toilets or chasing down tenants for rent checks.

They’re not waking up at 2 AM to field maintenance calls—or spending weekends vetting property managers.

Why? Because they’ve figured out a smarter way to invest in commercial real estate: syndications.

Syndications allow everyday investors to own fractional shares of high-quality commercial properties—without doing any of the heavy lifting. You provide the capital. An experienced sponsor team does everything else. And you get a direct stake in the deal’s cash flow, equity growth, and tax benefits.

It’s how the top 1% scale their portfolios while protecting their time.

And it’s not just for institutions anymore.

In this post, we’re breaking down everything you need to know about CRE syndications:

  • How they work

  • Why they’re one of the most powerful tools for passive income

  • And how to spot the right deals (and the right partners) before you invest

If you’re ready to earn like an owner without the day-to-day stress, this is the strategy you’ve been looking for.

The Family Office Playbook: Building Generational Wealth with Commercial Real Estate
The Family Office Playbook: Building Generational Wealth with Commercial Real Estate

If you study the portfolios of the world’s most successful family offices, you’ll find a common thread running through them: commercial real estate.

Not because it’s trendy.
But because it’s stable, strategic, and built to last.

While equities and private markets may generate bursts of upside, CRE offers something far more valuable for multigenerational families: consistent income, tax advantages, tangible control, and the ability to compound wealth quietly over time.

Real estate is the asset class that pays dividends in every decade—not just in bull markets. It’s what allows families to shift from wealth creation to wealth preservation without giving up growth. And perhaps most importantly, it provides a platform for educating the next generation—through ownership, stewardship, and real-world decision-making.

In this post, we’re going to walk through exactly how family offices use CRE to build generational wealth:

  • The strategies they employ

  • The mistakes they avoid

  • And how you can structure your own portfolio for lasting impact

This is the playbook that’s helped hundreds of families move from high-income to high-legacy. Let’s dig in.

The Quiet Rise of Medical Office Buildings ("MOBs"): A $400B Opportunity
The Quiet Rise of Medical Office Buildings ("MOBs"): A $400B Opportunity

While most commercial real estate investors have spent the past decade chasing industrial, luxury multifamily, or trendy retail, another asset class has quietly delivered steady returns, long-term tenants, and recession-proof demand—without the hype.

I’m talking about Medical Office Buildings (MOBs).

These properties aren’t flashy. You won’t find rooftop lounges or valet parking. But behind the understated brick façades, MOBs house one of the most resilient and overlooked income streams in commercial real estate.

And right now, they represent a $400 billion opportunity that more investors are starting to notice.

Healthcare is growing—and it’s not slowing down. Outpatient care is expanding. Aging demographics are driving demand. And while other property types wrestle with remote work and market oversupply, medical tenants are signing long-term leases and sticking around.

In this post, we’ll break down what MOBs are, why they’re thriving in today’s market, and how savvy investors are using them to create predictable cash flow and durable value—even in uncertain times.