A 1031 exchange remains one of the most effective strategies for deferring capital gains taxes while reinvesting in income-producing real estate. But in a shifting economic environment, finding the right 1031 exchange opportunities takes more than just spotting a property for sale. It requires a mix of market awareness, investment analysis, and knowing where to look.
Below, we break down some of the best sources for locating high-value opportunities that can fit your portfolio and investment goals.
A Qualified Intermediary is not just there to facilitate your 1031 exchange paperwork—they’re also a valuable source for potential deals. Many QIs maintain networks of real estate sponsors, brokers, and investors, giving them early access to properties that meet IRS guidelines.
By building a relationship with a QI early, you increase your chances of learning about 1031 exchange opportunities before they hit the open market.
Not all real estate agents are created equal. Some focus specifically on investment-grade properties that qualify for a 1031 exchange. These brokers often have insider knowledge of:
A broker with 1031 experience can also help you move quickly within the 45-day identification window, which is critical for securing high-value deals.
DSTs are a popular choice for investors who want passive income and professional management without the responsibility of direct ownership. Many 1031 exchange opportunities today come in the form of DST investments.
Benefits of DSTs include:
DST offerings are often available through specialized investment firms, wealth advisors, or real estate crowdfunding platforms.
Online marketplaces have made it easier than ever to search for 1031 exchange opportunities nationwide. Sites like LoopNet, CREXi, and Ten-X list thousands of investment properties, many of which qualify for 1031 exchanges.
To maximize your search:
Sometimes, the best opportunities are never publicly listed. Real estate investment groups, whether in-person or online, can connect you with other investors looking to sell or exchange properties.
Consider joining:
Networking can also lead to joint ventures, giving you access to larger or more diverse 1031 exchange opportunities.
High value doesn’t always mean high price—it often means high potential for returns. Motivated sellers in growth markets can offer properties at favorable terms.
Signs of a motivated seller include:
When combined with solid market fundamentals, these deals can deliver strong cash flow and appreciation potential.
A financial advisor or investment firm with 1031 expertise can help align opportunities with your risk profile and income goals. They often have direct relationships with property sponsors and access to private placements not advertised to the public.
These advisors can also help structure your portfolio to balance risk, return, and tax advantages.
Finding the bHigh value
Whether you choose direct ownership or a passive investment like a DST, due diligence is essential. Evaluate the location, financial projections, and sponsor credibility before committing. With the right approach, your next 1031 exchange could be the stepping stone to greater cash flow and portfolio growth.