Why Exchanges

Why a 1031 Exchange?

Why do people exchange real estate?

  • To pyramid their investment
  • To recognize a profit
  • To build an estate
  • To increase cash flow
  • To increase leverage
  • To assemble several properties
  • To reduce indebtedness
  • To build equity through greater appreciation
  • To increase amortization
  • To consolidate holdings
  • To upgrade size of investments
  • To balance portfolio relative to risk or location
  • To upgrade quality of investments
  • To avoid capital gains tax
  • To acquire more speculative property
  • To acquire more conservative property
  • To move geographically
  • To generate cash
  • To eliminate debt
  • To change land/improvement ratio
  • To achieve immediate income
  • To achieve future income
  • To assume management – earning greater yields
  • To eliminate management – gain more time
  • To change depreciation
  • To broaden or maximize the market for their property