Is It Possible To Exchange Out Of One Property And Into Multiple Properties?
At 1031 Exchange Place, we understand that investors often have diverse real estate investment goals that require flexibility in their property portfolio. That's why we are happy to inform you that it is indeed possible to exchange out of one property and into multiple properties through a 1031 exchange.
A 1031 exchange allows an investor to sell their investment property and reinvest the proceeds into one or more replacement properties of equal or greater value while deferring capital gains taxes. This means that an investor can exchange one property for several replacement properties, as long as the total value of the replacement properties is equal to or greater than the value of the relinquished property.
To do this, the investor must identify the replacement properties within 45 days of the sale of their original property and close on those properties within 180 days of the sale. The investor can also use a combination of direct purchases and partnerships to achieve their desired property portfolio.
It does not matter how many properties you are exchanging in or out of (1 property into 5, or 3 properties into 2) as long as you go across or up in value, equity, and mortgage. The only concern with exchanging into more than three properties is working within the time and identification restraints of section 1031.
At 1031 Exchange Place, our team of experts can guide you through every step of the exchange process, including helping you identify replacement properties that meet your investment goals. We pride ourselves on providing personalized service and customized solutions for each of our clients. So, if you're considering exchanging out of one property and into multiple properties, don't hesitate to contact us for a consultation.
We'd love to guide you through the 1031 process, let us know how we can help!