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Strategy Guide

What is a 1031 Exchange?

The tax strategy that lets real estate investors keep more of what they earn — and reinvest it faster.

A 1031 Exchange — named after Section 1031 of the U.S. tax code — allows real estate investors to sell a property and defer capital gains taxes by reinvesting the proceeds into a new "like-kind" property. Instead of paying taxes on your profit, that money stays in play and keeps growing. It's one of the most widely used and legally sound wealth-building tools in real estate.

How It Works

Three steps, two strict deadlines.

01

Sell your property

Your proceeds go directly to a Qualified Intermediary, not to you.

02

Identify a replacement within 45 days

You must formally identify your new property in writing.

03

Close within 180 days

The full exchange must be completed within 180 days of your original sale.

Key Rules

What you need to know.

  • The replacement property must be of equal or greater value
  • All equity from the sale must be reinvested — no cash in your pocket
  • Both properties must be held for investment or business use — not personal use
  • You can identify up to three potential replacement properties
  • The 45-day and 180-day deadlines are strict — no extensions
Why It Matters

For investors working with RBA Equity Partners, the 1031 Exchange is often the entry point to acquiring high-quality, income-producing net lease real estate. RBA is structured specifically to move at the speed these deadlines demand — evaluating, underwriting and closing replacement properties within the 1031 window.

Next Step

Every day counts. Let's talk.

Working a 1031 deadline? We respond within 24 hours.