How to Start Your First 1031 Exchange Today

Many people have questions about how to begin the 1031 exchange process. In this article, we are going to talk about how to start your first 1031 exchange today!

Before Your Begin

Before you begin the 1031 exchange process in earnest, it’s a best practice to reach out to a qualified intermediary who can act as your neutral third party guide throughout the exchange. You only have a short period of time to finish your exchange once you start the process so it’s a good idea to plan ahead. An intermediary can clue you in on all the rules and requirements of the 1031 exchange process and help you put together a gameplan for a successful exchange.

Sell or Acquire Your 1031 Property

After you’ve mapped out a gameplan, you can begin the 1031 exchange process by selling your relinquished property (in a forward exchange), or acquiring your replacement property (in a reverse exchange). You then have 180 days to complete the 1031 exchange.

Contact the Qualified Intermediaries of CPEC1031, LLC

Do you have questions about how 1031 exchanges operate and whether your property qualifies for 1031 tax-deferral treatment? The qualified intermediaries of CPEC1031, LLC have you covered. Our team has decades of experience working on exchanges under section 1031 of the Internal Revenue Code throughout the United States. Regardless of where your property is located, we can help you through the specific details of your next exchange. Find us at our downtown Minneapolis office to set up a time to chat with our 1031 exchange intermediaries.

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

How to Scale from Single-Family Rentals to Large Commercial Investment Property Using 1031 Exchanges

A 1031 exchange is a powerful tool in the tax code that can help you build long-term wealth. But how exactly would an investor use 1031 exchanges to increase their wealth over the long run?  In this article, we are going to talk about how to use 1031 exchanges to level up from single-family rental properties to larger commercial properties.

Start Small and Level Up

One of the biggest misconceptions about 1031 exchanges is that you have to be a big time commercial real estate investor to use section 1031. That’s not true at all. Section 1031 of the Internal Revenue Code is available for all US taxpayers to use. In fact, many of the clients we work with are small “mom-and-pop” shops that want to sell their property while deferring their capital gains tax burden. In other words, many taxpayers who utilized 1031 exchanges start small.

Let’s say you own a sing-family rental property in Minneapolis. So long as you meet all the requirements for 1031 exchange, you can exchange that property in a 1031 transaction and reinvest the sales proceeds into a bigger property (a four-plex for example) and defer your capital gains taxes in the process. You can even continue exchanging up into bigger and bigger properties over time – going from a single family unit, to a four-plex, to an apartment complex, etc. This is how investors truly level up through the use of the awesome power of the 1031 exchange!

Contact CPEC1031, LLC at Our Minneapolis Office

The best thing you can do to set yourself up for a successful 1031 exchange is work with a qualified intermediary throughout the exchange process. Contact the 1031 intermediaries at CPEC1031, LLC today at our downtown Minneapolis office to start your next 1031 exchange of investment or business real estate. We work with clients on their 1031 exchanges throughout the state of Minnesota and across the United States. No matter where your property is located, we have the skills and experience needed to help you defer your capital gains taxes in a 1031 transaction.

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

A 1031 Exchange is the Gift That Keeps on Giving

A 1031 exchange provides many benefits to real estate investors at the time of their exchange and well into the future. In this article, we discuss how a 1031 exchange is the gift that keeps on giving.

How a 1031 Exchange Works

A 1031 exchange is a powerful tax-saving tool in the United States tax code. It allows you to defer capital gains taxes when selling investment or business real estate. In order to get the benefit of tax deferral, you can’t pocket any of the sales proceeds. Instead, you must reinvest those proceeds into a like-kind property of equal or greater value, equity, and debt.

Continue Your Investment Far Into the Future

While a 1031 exchange does not fully erase your capital gains tax burden, it does defer those taxes until you sell your property in a straight forward sale. However, you can continue to defer those taxes is you continue to sell your properties in subsequent 1031 exchange transactions. This allows you to reap the benefits of the 1031 exchange far into the future and set yourself and your heirs up for success.

Find a 1031 Intermediary Near You

Find a 1031 exchange qualified intermediary near you by contacting CPEC1031, LLC. With more than two decades of experience, our team of skilled intermediaries have the localized knowledge to make sure your 1031 exchange is successful, no matter where your property is located. Reach out to our team of like-kind exchange professionals today to learn more about the 1031 exchange process and see if your property is a good fit for 1031 exchange treatment. You can find us at our downtown Minneapolis office and set up a time to chat with one of our experienced qualified intermediaries today.

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

How to Successfully Complete a 1031 Exchange & Defer Capital Gains Taxes

Are you thinking about selling an investment property? If so, you may be facing a significant capital gains tax bill. Fortunately, there’s a powerful strategy that real estate investors use to defer those capital gains taxes and continue building long-term wealth: the 1031 exchange.

What Is a 1031 Exchange?

A 1031 exchange (also known as a like-kind exchange) allows real estate investors to sell one investment property and reinvest the proceeds into another similar property without immediately paying capital gains taxes. This means you can keep more of your money working for you, grow your portfolio faster, and defer taxes until a later date.

Why Use a 1031 Exchange?

Investors choose a 1031 exchange for several reasons:

• Tax deferral: Avoid paying capital gains taxes at the time of sale

• Wealth building: Reinvest full proceeds into a new property

• Portfolio growth: Upgrade or diversify your investments

• Cash flow optimization: Move into properties with better returns

However, to take advantage of these benefits, you must follow strict IRS rules. Missing even one step can disqualify your 1031 exchange.

Is a 1031 Exchange Right for You?

A 1031 exchange can be a powerful tool for real estate investors looking to defer taxes and grow their portfolios strategically. But success depends on careful planning, strict compliance, and working with the right professionals.

Get the Help You Need with Your Like-Kind Exchange

Thinking about a 1031 exchange? Don’t try to go it alone! Having a qualified intermediary on your team gives you peace of mind. You can rest assured that your 1031 exchange is in good hands with the intermediaries at CPEC1031, LLC. We have more than twenty years of experience working with taxpayers from across the United States on 1031 exchanges of all types. Our team is well-established and equipped to help you through all the ins and outs of the like-kind exchange process. Contact us today at our Minneapolis office to learn more about the exchange process and see how we can help.

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

3 Reasons to do a 1031 Exchange in 2026

There are many great reasons to do a 1031 exchange, but many taxpayers are unaware of the true benefits of conducting a like-kind exchange under section 1031 of the Internal Revenue Code. In this article, we talk about three reasons why you should consider a 1031 exchange in 2026.

Capital Gains Tax Deferral

The greatest benefit of any 1031 exchange is capital gains tax deferral. In most standard sales of investment real estate, you need to pay capital gains taxes on the net proceeds, which can add up to a huge tax bill. This potential tax burden is often an impediment that keeps investors from selling their property. A 1031 exchange is a great solution to this problem, in that it allows you to defer that capital gains tax bill. There are, of course, caveats. Instead of pocketing your net proceeds from the sale, you must reinvest those proceeds into a replacement property.

Portfolio Diversification

A 1031 exchange must be done with like-kind property that’s held for investment or business use. As long as your property fits that definition, you can exchange out of and into many different types of property. As such, a 1031 exchange is a great way to diversify your portfolio with different types of real estate.

Investment Continuation

With a straight forward sale of real estate, you pay a sizable chunk of change to the government in the form of taxes. With a 1031 exchange, you get to defer that tax burden and keep your money working for you in a continuation of your investment.

Give Yourself Plenty of Time to Complete Your 1031 Exchange

You don’t have a lot of time to complete a 1031 exchange so it’s paramount that you give yourself plenty of lead time to set yourself up for success. Contact a qualified intermediary well in advance of the sale of your relinquished property to discuss the details of your exchange. That will allow you to cover all of your bases so you’re not scrambling at the last minute to put together your exchange. The qualified intermediaries at CPEC1031, LLC are here to help you through all the details of your next 1031 exchange of like-kind real estate.

• Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved