A Guide to Commercial Real Estate Investment with the 1031 Exchange

Commercial Real Estate Investment

This article acts as a brief guide to investing in commercial real estate and how the 1031 exchange can help you invest successfully.

Compounding Your Investment with a 1031 Exchange

A 1031 exchange is a phenomenal tool for commercial real estate investors. In a nutshell, section 1031 allows you to defer your capital gains taxes when you sell a piece of real property. The catch is that you have to roll those sales proceeds into a new, bigger and better property. The benefit to the taxpayer is two-fold. You get to avoid a big tax windfall and keep your money working for you in a continued investment – compounding and building wealth over time. And you can keep exchanging property under section 1031 as you continue to build your portfolio.

Work with a Team of Professionals

The most important thing to remember when investing in commercial real estate is to work with a team of experienced professionals. Real estate investing can be complicated, but having a team of pros on your side can help you make the best decisions possible. Be sure to involve your CPA, attorney, financial advisor, and 1031 exchange intermediary whenever you’re considering selling or purchasing property.

Set up Your Exchange

Selling real estate can result in a hefty tax windfall if you’re not careful. Doing a 1031 exchange helps you avoid such a tax bill. Commercial Partners Exchange Company has two decades of experience facilitating exchanges for taxpayers all over the country. Contact us today to schedule a time to chat with one of the skilled qualified intermediaries at CPEC1031. We have offices around the country but our primary location is in downtown Minneapolis. Give us a call to set up your 1031 exchange!

  • 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.


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