1031 Exchanges For Real Estate Agents
Educating Clients About 1031 Exchanges as a Real Estate Agent
1031 exchanges for real estate agents are a big win for you and your client. When your clients are selling an investment property, a topic that’s often missed or put off until the last minute is a 1031 exchange. They’re often hit with a surprise near closing: capital gains tax. A properly structured 1031 exchange allows them to defer taxes and reinvest their full equity into new real estate—giving them more purchasing power and long-term growth: https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-tips.
Whether they’re upsizing, diversifying, or transitioning out of active management, a 1031 exchange can help them build wealth faster without taking a tax hit. The long-term effect of buying and selling real estate using the 1031 exchange is that upon death, their heirs will get a step-up in basis. This means that all the tax your client has deferred throughout their investment career is now gone, and their heirs have the ability to sell at fair market value without a snowball of a tax hit. This is a fantastic estate planning tool for your client’s future and an incredible way for you to stand out as an investor-friendly real estate agent.
Steve Wolterman, the owner and founder of 1031 Federal Exchange and Wolterman Law Office, has been using these strategies with clients for nearly 20 years: https://1031federal.com/how-start-1031-exchange/.
1031 Exchanges for Real Estate Agents – Benefit From a 1031 Exchange Partner
We want you to stand out and be the star when it comes to investor-friendly real estate agents! Being able to confidently guide your clients through a 1031 exchange gives you a competitive edge.
What can you expect by partnering with a 1031 exchange company?
- Position yourself as an investment-savvy advisor.
- Strengthen trust and long-term client relationships.
- Gain more referrals from 1031 exchange clients who appreciate the value you bring.
- Get more repeat business as clients continue to exchange; they are more likely to continue working with you as their exchange expert.
We help real estate agents like you look like pros by supporting your clients and answering technical questions on your behalf or right alongside you!
Do You Need a Real Estate Agent to Do a 1031 Exchange?
Legally, no, but practically, YES.
A 1031 exchange doesn’t require a real estate agent by law, but agents are often essential to a successful outcome.
As an agent, we work with you throughout the entire process to make sure your client is in the best position for success. We just need your help with a few things:
- We want you to get the listing for the 1031 exchange client and get top dollar.
- Help the exchangor (taxpayer) identify replacement property within IRS deadlines. This is key with 1031 exchanges, as deadlines are strict and we want the best replacement property for the client: https://1031federal.com/exchange-timeline/.
- Understand location and asset types that best fit the client’s needs. We are happy to provide training and resources.
- Coordinate timing between closing transactions. If it’s a Forward, Reverse, or Built-to-Suit exchange – timing is KEY.
You are often the first professional a client asks about 1031s. That’s why we make you the hero and handle the technical side in the background.
How We Support You and Your Clients
As a Qualified Intermediary, we provide the technical and tax guidance your clients need. We make 1031 exchanges for real estate agents simple.
- IRS-compliant document prep and funds handling.
- Forward, Reverse, Build-to-Suit, and corporate restructuring.
- Full support throughout the entire process.
- Access to trusted legal, tax, and DST Advisors.
You can introduce us directly or keep us in the background while we support you and your brand.
Let’s Partner – Get a Quick Strategy Session for Your Client
Want to see if your client qualifies for a 1031 exchange or just understand the basics better? We are here to help.
1031 Exchanges for Real Estate Agents – Know the Facts
How Fast Can You Set Up a 1031 Exchange?
On a Forward Exchange, we can typically get them completed the same day. This is not ideal for future planning, but in a pinch, we have you covered. When looking at a reverse, Build-to-Suit, or any corporate restructuring, getting a hold of us ahead of time is a huge win for you and your client.
Can My Client Exchange a Primary Residence?
A 1031 exchange is for investment property use. If your client is selling their primary residence, they would be able to utilize section 121. Allowing a single person to not pay tax on $250,000 of gain and a married couple $500,000 of gain.
What Mistakes Should I Help My Client Avoid in a 1031 Exchange?
If your client wants to fully defer all of the capital gain tax, you need to ensure they are purchasing equal or greater value on the sales price, not just the proceeds. Staying in touch to make sure deadline requirements are met is another key factor. The deadlines are strict.
Learn More About Our 1031 Exchange Services: Contact 1031 Federal Exchange Today
If you need help with a 1031 exchange or have questions, speak with our team at 1031 Federal Exchange. We will help you with 1031 federal exchange services. Call 513-488-1135 or contact us online to schedule a free consultation. Located in Loveland, Ohio, we serve clients nationwide.