Realtor · Atlanta · Member since 2026 · 7 posts · 0 votes
As we enter the fourth quarter of the year, it’s a good time for real estate investors to take a closer look at their portfolios and begin planning for the year ahead. Are there properties you’re ready to sell? Are you considering repositioning your equity into a different investment? If selling an investment property is part of your plan, now is the time to consider whether a 1031 exchange may fit into your strategy.
A 1031 exchange may allow an investor to defer certain capital gains taxes by selling qualifying investment or business real estate and reinvesting the proceeds into other qualifying real property. This is a conversation you want to have before you list the property for sale to ensure that the 1031 exchange is structured correctly and timely.
Ask yourself: Do I want to cash out, or would I rather reposition that equity into another investment?
The fourth quarter is an excellent time to evaluate where you are, where you want your real estate portfolio to go, and what steps you should take now to prepare.
As we enter the fourth quarter of the year, it’s a good time for real estate investors to take a closer look at their portfolios and begin planning for the year ahead. Are there properties you’re ready to sell? Are you considering repositioning your equity into a different investment? If selling an investment property is part of your plan, now is the time to consider whether a 1031 exchange may fit into your strategy.
A 1031 exchange may allow an investor to defer certain capital gains taxes by selling qualifying investment or business real estate and reinvesting the proceeds into other qualifying real property. This is a conversation you want to have before you list the property for sale to ensure that the 1031 exchange is structured correctly and timely.
Ask yourself: Do I want to cash out, or would I rather reposition that equity into another investment?
The fourth quarter is an excellent time to evaluate where you are, where you want your real estate portfolio to go, and what steps you should take now to prepare.
@Shavonne Clark, I think a 1031 exchange can make sense when an investor wants to keep their equity working in real estate instead of taking the proceeds out, but it really depends on the property and the investor’s plans. The important part is starting the conversation before the sale because the timing and structure matter.
I’ve had clients look at selling one property and moving that equity into another, and I’ve found that it helps to talk through the transaction early, including how the property is owned and what the next investment will look like. I always encourage investors to have their tax professional involved as well so the tax side is handled properly.
I really like this topic because planning around the next investment is a big part of the real estate work I do. Your point about asking whether you want to cash out or reposition the equity is a good one. Happy to stay connected, @Shavonne Clark, and I’ll be following your posts.