1031 Exchange Benefits and Exchange Options

1031 Exchange Highlights

1031 Exchanges, as defined under section 1031 of the IRS Code, is a strategy that allows you to defer paying capital gains taxes on an investment property.  Using a 1031 Exchange, you pay no taxes on an investment property when it is sold as long as another “like-kind” property is purchased with the gains.

It is, when properly structured and administered, a very effective and powerful way for you to shift the focus of your investments while being able to legally defer tax payments.

Grocapitus offers investors two types of investments to exchange into when doing a 1031 Exchange:

Grocapitus apartment syndications

There is a common misconception that you can not do a 1031 exchange directly into a syndication. The good news is there are viable ways syndicators may facilitate a 1031 Exchange into their apartment syndications, but not all of them offer this capability. On select Grocapitus syndications we allow investors to exchange into the syndication.

Grocapitus turnkey duplexes, triplexes, and fourplexes

For active investors that prefer 100% direct ownership, many of our Grocapitus turnkey rental property projects allow investors to use a 1031 Exchange to defer capital gains taxes when they buy in our of our build-to-rent multifamily communities consisting of fourplexes, triplexes, and/or duplexes.

We only invest in communities in carefully select locations using Location Magic, a unique data-driven real estate metrics and analytics system we pioneered.  This system enables us to consistently build in up and coming metros and neighborhoods with strong market fundamentals, and provides our real estate buyers with handsome, tax-advantaged returns.

For more information about doing a 1031 Exchange into a multifamily syndication, watch this video with our lawyer, Dugan Kelley.

Featured 1031 Exchange Investment

Would You Like To Discuss A 1031 Exchange With Us?

We can tell you about our upcoming 1031 Exchange eligible syndications and turnkey properties along with their timelines. We can also answer any questions you have.

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1031 Exchange Benefits

Here are a few reasons you may want to consider replacing an existing rental property with another investment property:


If the current investment property is not performing well


To replace an aging property with a newer property

To own a property that requires less maintenance or has better property management


To scale a portfolio by freeing up cash to purchase a larger property

To transition from single-family to multifamily

To own a property in a better performing metro or neighborhood

But there are tax implications of selling your current investment property and then investing the proceeds in a new property. However, by utilizing a 1031 Exchange, you may be able to sell your current investment property and defer the capital gains by re-investing into another “like-kind” project.

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