How to Split a 1031 Exchange 3 Ways

A little-known part of the 1031 exchange rules: investors can identify up to three replacement properties within the 45-day window, regardless of their individual value. That flexibility opens up real strategy for San Antonio-area investors deciding how to reinvest their proceeds.

 

JJ Gorena of The Trey Group walks through a real example using a $1 million sale: an investor could identify three properties near $1 million each and choose the strongest one after underwriting, split the amount into one $1 million and two $500,000 properties as backup options, or divide evenly into three properties around $333,333 each. That last approach, Gorena explains, "would allow you to potentially move from owning one property to owning three properties" — a diversification strategy some investors use specifically to spread risk across multiple assets in different parts of the region, from Stone Oak to New Braunfels to Seguin.

 

Getting Started

If you own investment property and expect to sell within the next year, the right time to start planning a 1031 exchange is now, not after you've accepted an offer. Watch Episode 1 of "1031 Exchange, Explained" for a full walkthrough of the identification period.

Watch Episode 1 of "1031 Exchange, Explained": https://youtu.be/Kmbth-XiI50 

Schedule a consultation with JJ Gorena: https://calendly.com/treygroupcommercial/15min

JJ Gorena, The Trey Group Phone: 210-367-6024 Email: homes@thetreygroup.com