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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.
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.
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 build rental 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.
Our projects have no hassle property management, and come with a top-notch property management company that we have thoroughly vetted.
Would You Like To Discuss A 1031 Exchange With Us?
We can tell you about our upcoming properties and their timelines and answer your questions.
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Investor Reviews
I have several investments with Neal Bawa through Grocapitus. I trust that his underwriting is conservative and accurate. He is very knowledgeable about market conditions and is happy to share his research. During the course of the investments Neal and Anna are both very responsive and prompt in answering questions.
Their reporting is consistent, timely, and provides an honest portrayal of how the property is doing. The returns I have received on my investments have been very close to proforma projections, even in these very difficult pandemic times. I would definitely invest with Grocapitus again in the future.
Farzana P.
Grocapitus is a breath of fresh air. They do things differently and way better than their competitors. Thank you Neal for being an amazing leader to your team! I couldn’t be happier with the results so far. Looking forward to investing more in the future.
Sarah L.
One of our investments with Neal had an exit with better than projected returns (during uncertain times with the pandemic)!!
Vengal D.
Katrina J.
Lisa H.
Rob D.
I’ve invested in 6 of Neal’s projects. As I write this, we just had the first successful exit: the Windward Forest Multifamily project, where we earned >20% IRR.
Neal is extremely agile. Until COVID hit us, his projects were mostly multifamily deals (each with some value-add strategy that should increase the NOI). Since then, he realized that there may be higher risk in such deals due to tenants’ unemployment, inability to pay rent, and eviction restrictions.
Still, I am very impressed by the multifamily projects performance: the occupancy levels have not gone down, and rent collection is very high, given the circumstances. I personally like the multifamily projects more, as they offer dividends from the rent income, and it’s easier to predict their performance. Anyways, I trust Neal’s numbers, so I have invested in his recent construction projects, too. Keep them coming, Neal!
Ivan Z.
I invested in Grocapitus’ project because I liked their data driven approach to analysis and conservative underwriting. So far results have been delightful as the project has outperformed the projections and continues to perform well even during the coronavirus crisis. I also appreciate the fact that Grocapitus is easily available and they make it a point to communicate personally to address any questions I might have.
Anshu S.
As a Limited Partner to invest in a syndication, for me, trust is a big factor. With Neal’s vast experience in multifamily construction, data-driven approach, and creative ways in solving problems as well as straightforwardness helped in creating the trust.
Avinash P.
Contact Us To Discuss a 1031 Exchange
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