Mike Frey San Diego Realtor

Lets make the 1031 Exchange easy.

Internal Revenue Code Section 1031 is an awesome tool for real estate investors looking to build wealth.

Basically, it lets investors put off paying taxes on the profit they make when they sell an investment property, as long as they use that money to buy another investment property. This way, they can keep using their profits to grow their investments without getting hit with a big tax bill right away.

Quick Contact: [email protected], Digital Business Card or call 858-330-1242 (Feel free to call me. Let’s talk about San Diego Real Estate.)

Exchange Accommodator.

A 1031 exchange accommodator, also known as a qualified intermediary, is a professional who assists real estate investors in executing a 1031 exchange. First, they handle the sale proceeds from the property being sold. Next, they use these funds to buy the new property on behalf of the investor. This process is essential because it ensures the transaction complies with the strict rules required to defer capital gains taxes under Section 1031 of the Internal Revenue Code. Without an experienced accommodator, investors might struggle to successfully complete these tax-advantaged exchanges.

If you’re considering a 1031 exchange, you should talk to Adam Nishikawa, Vice President with Asset Exchange Company. He is experienced, local to San Diego, and can provide valuable assistance with the process.

Working with Adam and myself could be an excellent idea for you to build your wealth.

Adam Niskiwawa

Some Key Rules:

  • Investment Property Only. (or becomes an investment property due to renting it out after a year and a day. No Flip’s)
  • Work with a 1031 Exchange Company (Like Adam) and get your dates. 
  • Tell your Realtor ASAP. So they can find your properties to declare.  
  • Pick Three Candidates. But make sure the combined sum of all three purchases cannot be more than 200% of your original property’s selling price. (200% rule, no good, some gains will need to be declared.) 
  • 45 days to identify properties, all within 180 Days from the close of the original sale day. (Hard Deadline) 
  • Money cannot go to your account. A Qualified Intermediary to hold the $.
  • he Title Name Must be the SAME.  From the Property Name to the 1031 Exchange Name. Talk to an Expert about 
  • You cannot sell a lesser-value property and pocket some cash. 

Adam Nishikawa is a VP at Asset Exchange Company here in San Diego. 

  • Adam’s can be reached at 619-550-6776

Construction Exchange.

They can do it, but timing is an issue. Make sure to talk to Adam if you have questions. 

Adam Nishikawa is a VP at Asset Exchange Company here in San Diego. 

  • Adam’s number is 619-550-6776

Reverse Exchange.

 Acquire the property first, then 180 days to sell the original property. It’s not simple; you cannot own both properties at the same time. 

  • Asset Exchange will Triple Net lease. And stay on title until the sells.

Lenders don’t like to lend on these, so All Cash purchases may be the way to go. 

Adam Nishikawa is a VP at Asset Exchange Company here in San Diego. 

  • Call Adam’s – 619-550-6776

1031 Exchange Tip's

I always let the client know that a 1031 Exchange is an option for any business or investment listing, or even for an owner-occupied listing that has an investment component (like a house with a farm or a separate in-law unit). But, I am not a lawyer and I never offer tax or legal advice. I always recommend talking to a CPA or tax advisor to discuss their specific situation.

Expert Tip #1: Make sure to include the right 1031 Exchange language in the Purchase and Sale Agreement or as an addendum.

Expert Tip #2 on Opening a 1031 Exchange account before the escrow closes. Get you in contact with Adam Nishikawa at Asset Exchange Company.

Expert Tip #3 Start looking for replacement property as soon as possible. My client is on a strict deadline to identify and secure a replacement property, so the sooner we start searching, the better.

Contact Mike if you have questions

Did you know? You can buy a Brand new house in San Diego? check out my page. 

Looking for Existing Properties? Check out my Real Scout search page. I think it is the best in San Diego for a home search. 

Moving Services. This link may help make a move easy if needed. 

Quick Contact: [email protected] or call 858-330-1242 (Feel free to call me. Let’s talk about real estate.)

Digital Business Card.

  • Make sure to consult with your CPA, legal team, and anyone else who can help guide your decisions. As a Realtor, I follow the instructions from you, my client, and the accommodator. I do not offer legal or tax advice as I am not licensed or qualified to do so. My expertise is solely in buying and selling real estate in California..

Cookies Policy

We use cookies to enhance your browsing experience. By continuing to use this site, you agree to our use of cookies. To learn more about how we use cookies and your options, please see our Cookies Policy