Four Signs a 1031 Exchange Could Benefit You!!

SIFF Investment Services has advised hundreds of real estate investors since 2002 through their 1031 Exchanges. Our fee-only approach allows us to be unbiased and provide solutions for investors that traditional brokerage houses will not offer. We advise investors who own single family homes all the way to large multifamily and commercial properties. We often are asked “When should I do a 1031 Exchange?

Below are our top 4 indicators of when an investor should do a 1031 Exchange.

A 1031 Exchange, named after Section 1031 of the Internal Revenue Code, allows real estate investors to defer capital gains taxes by selling one investment property and acquiring another “like-kind” property within specific time frames.

Here are four key signs that suggest a 1031 exchange could be advantageous for your real estate investments:

1. You want more cash flow: If you’re seeking to increase your rental income, a 1031 exchange can allow you to move into properties with higher income potential without incurring immediate tax liabilities.

2. You are retired or close to retirement: For those in or nearing retirement, a 1031 exchange can be an effective way to transition your real estate portfolio to better suit your changing financial needs and goals.
In retirement, an investor is more focused on income rather than appreciation.

3. You own property in an expensive market like the Bay Area with significant appreciation: If your rental property has experienced substantial value increases, a 1031 exchange can help you defer taxes on these gains while potentially diversifying into markets with better returns. This is especially true if an investor owns a single family home. Single family homes tend to appreciate well but underperform when it comes to rental income.

4. You don’t need liquidity and do not want to pay taxes now: If you’re not in immediate need of cash and prefer to keep your capital working for you, a 1031 exchange allows you to defer capital gains taxes and reinvest the full value of your property.

If you recognize any of these signs in your current real estate situation, a 1031 exchange might be worth considering. Our team at SIFF Investment Services is always available to discuss your specific circumstances and help determine if this strategy aligns with your investment goals.

About SIFF

For over 20 years SIFF – Strategic Wealth Advisors Specializing in Real Estate Investments – has provided unbiased, fee-based real estate consulting to disrupt outdated real estate models. We are not realtors or agents. Our role is to educate and empower clients by objectively outlining all options. Our fee-only structure allows us to put client interests first. By taking an unbiased, consultative approach, SIFF aims to help clients prosper through wise real estate investments.

Call: 1 (415) 601-1051 |