1031 Exchange Into a Turnkey Fourplex

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:

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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.

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.

Neal and his team are awesome! I’ve invested in 4 projects with him and after 2 years we’ve already sold one. He’s outperformed other syndicates that I’ve invested with for much longer. I love getting his monthly updates. It’s rare to have a syndicator update us so regularly.

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.

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Sarah L.

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I had met Neal at a real estate investor meetup a few years back. Neal was very positive about investing in multifamily. He does a lot of research using data analytics on markets, identifying growth areas, finding good neighborhoods and shares the data and his findings with interested people and clients. His presentations are filled with a lot of info about the market, the property, the financials the expected returns, and his team patiently answers questions.

One of our investments with Neal had an exit with better than projected returns (during uncertain times with the pandemic)!!

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Vengal D.

As an investor in Park Canyon I am so impressed with the management team. One of the things that I really like are the quarterly updates of the project. They keep you informed of what is going on with the project and point out both the good and the bad. You are never kept in the dark about your investment. This is a fantastic project and I am so happy that I am an investor!
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Katrina J.

Thank you for a thorough and newsy update. I am still in awe of your work efforts and completions in such a short timeframe. And in these hot, hot, hot summer months no less. The report is very detailed and it makes me feel like I am there to look at it all. Thank you for your dedication to excellence and for all your conscientious efforts. It is much appreciated.
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Lisa H.

Challenging times take a dedicated group to plan and execute to meet investment objectives. The site and asset management teams at Grocapitus have worked hard to maintain occupancy, keep tenants safe, and delinquency low. Collectively, they have effectively managed expenses and incrementally increased rents to exceed NOI budget expectations.

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!

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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.

I have invested in a couple of opportunities with Grocapitus. One of them is a multifamily property, which has been performing superbly, and way better than the initial predictions. The second one is a new construction project, which is on-time, even during the COVID-19 pandemic. And the marketing material that the team has put together to lease these new units is top-notch. Awesome job by Neal and his team in managing the properties and consistent communication with their investors.

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.

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