Maximize Your Investment with a 1031 Exchange

Defer Capital Gains Tax and Build
Long-Term Wealth

What is a 1031 Exchange?

A 1031 Exchange, named after Section 1031 of the U.S. Internal Revenue Code, allows investors to defer capital gains taxes when selling an investment property by reinvesting the proceeds into a "like-kind" property.

This powerful tax strategy enables real estate investors to preserve capital, grow their portfolios, and enhance long-term wealth by continuously reinvesting in new properties without immediate tax liabilities.

To fully qualify, the replacement property must be of equal or greater value, all proceeds must be reinvested, and the exchange must follow strict IRS timelines.

How it works

  • List and close on your current property.

  • You have 45 days from the sale to identify new property options.

  • Funds must be held by a licensed third party—not by the investor directly.

  • You have 180 days from the sale of the first property to complete the transaction.

  • Meet all conditions and timelines to avoid immediate tax liabilities.

Eligibility Requirements

  • Like-Kind Property – Both the sold and purchased properties must be held for investment or business use.

  • Equal or Greater Value – The replacement property must be of equal or higher market value.

  • Reinvestment of All Equity – All net proceeds must be reinvested into the new asset.

  • Same or Greater Debt – Any debt retired in the sale must be replaced with equal or greater debt on the new property.

FAQs

Our Other Services

EB-5

HFS believes it is critical to offer opportunities for permanent US Residency to qualified investors through EB-5 Visa investments in strong US projects.

The EB-5 program is a logical and natural win-win platform for global investing.

Hard Money Loan

This type of loan is secured by real property. Hard money loans are a last resort or short-term loan.

These loans are primarily used in real estate transactions, with the lender generally being individuals or companies and not banks.

Start Your 1031 Exchange Today!

Let our experts guide you through a seamless exchange process.