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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 1031 Exchange Into Multifamily Syndication

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.

We 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 investors with handsome, tax-advantaged returns.

Benefits of a Grocapitus 1031 Exchange

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1031 eligible projects to date

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success rate on individual exchanges

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White glove support

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Super experienced legal team and General Partners

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No added fees for 1031 closing

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No added entity formation fees

Watch our lawyer, Dugan Kelley, explain the 1031 into multifamily process

Grocapitus 1031 Exchange Testimonial

My 1031 experience with Grocapitus went off without a hitch. They understand the process, helped educate me, and provided me a single point of contact to streamline everything. They also understood my time constraints and made sure my exchange fit into the structure of their deal.

Leading up to close, the Grocapitus team worked directly with my 1031 intermediary to make sure we were all on the same page, and that all documents were executed properly.

I have to admit I was struggling a bit to find the right 1031 exchange opportunity after selling my apartment complex. I was extremely fortunate that the Midtown Ridge Apartments deal showed up in my inbox when it did, and am so happy to be working with the Grocapitus team.

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Tom K.

Would You Like To Discuss A 1031 Exchange With Us?

We can tell you more 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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Why Consider a 1031 Exchange?

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

1031 Exchange Testimonials

Exchanging into a TIC interest in a new development from two sold properties is no easy task. The timing has to align perfectly on all ends. The additional complication is having a construction lender and their requirements, along with the equity and debt legal structure for participation and allocation which is required to meet all tax and legal requirements for my exchange.

The Grocaptus team made it happen using a very organized and systematic process for the entire transaction. The support of Neal, Anna, and Peter was exceptional in all respects. Their legal team led by Dugan Kelley was superb in their preparation and review of all the required documentation for a successful closing.

The end result was our ability to participate in a financially attractive new development that is projected to exceed most 1031 offering.

As a former commercial lender and current active investor with over 30 years of experience and current investments in multifamily, hotels, retail, land, triple net, and industrial properties, I highly recommend Grocapitus as an excellent source for passive real estate investments.

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Anthony T.

EInvesting in syndication has been a game-changer for me as most of my life I spent long hours in the corporate world and many years doing luxury flips, which were both very costly and risky, not to mention a single point of failure. I started to invest in syndications 2 years ago and it gave me an opportunity to participate in large-scale real estate projects that would have been out of reach on my own. It also provided me with a level of diversification that has significantly reduced my investment risk.

The expertise of the Grocapitus syndication team gave me confidence, knowing that my capital was in capable hands. Neal and Anna have a stellar track record not to mention their genius in finding the best areas to invest in and identifying key trends in the industry early on and adjusting accordingly. They are industry leaders, and I learned a lot from them from their university program as well.

I did a substantial 1031 exchange into the Idaho fall project this summer. I reached out to Peter Majeski, Director of Investor Relations for Grocapitus, and he guided me through the details of the deal and the 1031 process that the team has implemented. I was extremely impressed by everyone involved and the process itself. They conducted a 1031 call with the investors and addressed all of our questions, I certainly learned a lot. The closing was seamless and went smoothly. The team stays in constant contact with us and continues to guide us as we are completing our corporate documents.

I highly recommend Grocapitus for anyone looking to scale their investment portfolio with the guidance of seasoned professionals and leaders in the industry.

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Allen B.

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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