FORWARD EXCHANGE

For a valid 1031 Exchange you must meet the following
requirement in regard to replacement property:

• You have 45 days after the sale of your relinquished property to identify your like-kind replacement property(ies)

• You have 180 days after the sale of your relinquished property to purchase your replacement property(ies).

For a 1031 exchange to be valid, your properties must be like-kind. As it pertains to real estate, all business or investment real estate is like-kind to other real estate. Generally speaking, the only real estate that does not qualify under a 1031 exchange is a vacation home and personal primary residence.

Passive real estate investments allow the investor to generate routine income without the burden of managing the assets. Some forms of passive investing in real estate include DSTs, Triple Net Leases (NNN), and REITs.

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Passive investments allow for diversification of a real estate investment portfolio and eliminate the headaches involved in traditional real estate ownership.

One of the most popular types of passive real estate investments valid for replacement property in a 1031 exchange is a Delaware Statutory Trust (DST).

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A DST is a real estate investment vehicle that provides accredited investors with access to investment grade real estate that is generally larger than they could have acquired on their own.