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.

To learn more, access our 1031 Exchange Into an Apartment Syndication FAQ.

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.

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.

Send us your info and book a call with our 1031 Investor Relations Manager

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

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If the current investment property is not performing well

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To replace an aging property with a newer property

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

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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.

What Our Investors Say About Us

Neal does wonders with investor money. The ROI with Neal beats all my projects with other firms. Besides this key aspect, I want to share a few other things.

When I started working with the team in 2018 for the Park Canyon project, I found Neal’s team to be superb. They are responsive, provide quality work, and the operational flow is seamless. Neal not only deploys many advanced technologies, concepts, methods to identify opportunities but also manages each project with unbeatable efficiency.

Bottom line – Neal is a disruption force in his field, he has everything down to a science. He fuses the best practice of both technology and business, into his workflow. And he always seeks the truth. If you are with Neal, you are on the fastest train!

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Jennifer F.

I always wanted to get involved in real estate investing, but never wanted the headaches that can be associated with being a landlord. I also knew that I lacked the knowledge needed to make informed investment decisions.

Fortunately, a friend told me about Neal, Anna and the Grocapitus team. I was impressed with the ease of onboarding, detailed due diligence of opportunities to aid decision making, and great communication via monthly project updates.

I was so impressed with their organization that in the last 2 1/2 years, I have invested in a total of seven projects. Our first project together, Greenfill Storage Depot, recently had an early exit that far exceeded our expected return! A true home run! Thank you Grocapitus!

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Steve A.

I have worked with Neal and his team at Grocapitus for four years, and I have the perspective of being a passive partner in his deals which have come full circle to completion. I also have the perspective of being a general partner in my own deals as well as a passive partner in deals with other syndicators.

Neal’s datacentric approach gives him a near oracle like insight into the vagaries of not just commercial real estate, but also macroeconomic trends as they impact microeconomic zones and industries. His ethics are beyond reproach and his interests are clearly aligned with his passive partners.

He is what you want in a partner, someone who is scanning the horizon for both threats and opportunities, someone who can hunt for the right prey at the right time, and you both get to dine on the feast together.

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Gurpreet P.

Contact Us To Discuss a 1031 Exchange

Send us your info and book a call with our 1031 Investor Relations Manager

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