Strategize Your Next Investment
A 1031 exchange can help preserve investment capital for reinvestment, but choosing what comes next can be just as important as completing the exchange itself.
Customized 1031 helps Orange County real estate investors evaluate replacement property strategies, Delaware Statutory Trusts, and other real estate investment options based on their individual goals.
Work directly with Doug Zator to better understand your choices and develop a strategy before exchange deadlines begin driving the decision.
1031 Exchange Guidance for Property Owners
Selling appreciated investment real estate can create an opportunity to rethink how your equity is positioned.
You may want to acquire another property directly. You may be ready to reduce the responsibilities of active property management. Or you may want to explore professionally managed real estate investments as part of your next step.
Customized 1031 helps you evaluate those possibilities within the context of your exchange.
The goal is not simply to find a replacement property. It is to determine which options make sense for what you want your real estate investments to accomplish next.
How a 1031 Exchange Advisor Can Help Orange County Investors
The rules and mechanics of a 1031 exchange are only one part of the process. Investors also need to make an important investment decision within a limited period of time.
Doug helps bring greater clarity to that decision.
Define Your Priorities
Start with the property you are selling and what you want to achieve after the exchange.
That may include income considerations, reduced management responsibilities, diversification, property type, financing, investment horizon, or other priorities.
Evaluate Your Options
Review potential strategies based on your objectives rather than assuming the next investment needs to look like the property you just sold.
Explore DST Opportunities
For accredited investors interested in professionally managed real estate, Delaware Statutory Trusts may be one option worth evaluating as part of a broader 1031 exchange strategy.
Plan Ahead for Exchange Deadlines
Beginning the conversation early provides more time to understand your options before identification and closing deadlines become the primary concern.
Coordinate With Your Professional Team
Doug can work alongside your Qualified Intermediary, CPA, attorney, real estate broker, and other professionals involved in your exchange.
A More Thoughtful Approach to Replacement Property
Orange County investors enter 1031 exchanges with different properties, circumstances, and long-term objectives.
Some want to remain active real estate owners. Others may be ready for a different ownership structure or a more passive approach to real estate investing.
Your priorities may include:
- Moving into a different property type or market
- Reducing day-to-day management responsibilities
- Diversifying real estate exposure
- Repositioning one property into multiple investments
- Exploring professionally managed real estate
- Adjusting your portfolio as retirement approaches
- Creating an investment strategy that better reflects your current goals
Customized 1031 helps you compare potential strategies and understand the considerations involved before making a decision.
Considering a DST for Your 1031 Exchange?
For some accredited investors, selling a property creates an opportunity to move away from the responsibilities associated with directly owning and managing real estate.
A Delaware Statutory Trust allows investors to acquire a beneficial interest in professionally managed real estate. Certain properly structured DST interests may be eligible for consideration as replacement property in a 1031 exchange.
DSTs are not appropriate for every investor. Important considerations can include the underlying property, sponsor experience, financing, fees, liquidity, projected income, investment structure, and risk.
Doug helps investors evaluate DST opportunities within the context of their broader exchange and investment goals.
When Should Orange County Investors Start Planning a 1031 Exchange?
Ideally, planning begins before the relinquished property closes.
Starting early gives you more time to define your objectives, review potential strategies, and understand what you may want to identify once the exchange begins.
Consider starting the conversation if:
- You are preparing to sell investment real estate
- Your property is already listed or under contract
- You are unsure what you want to purchase next
- You are having difficulty finding suitable replacement property
- You are considering a Delaware Statutory Trust
- You are exploring professionally managed real estate
- You want to reduce active property management
- You want to understand your options before beginning the exchange
If your exchange is already underway, the replacement property conversation may be even more important.
Your 1031 Exchange Team Has Different Roles
A 1031 exchange often involves several professionals, each with a different responsibility.
Your Qualified Intermediary performs specific functions required for the exchange. Your CPA or tax professional can provide tax advice. Your attorney can address legal matters. Your real estate broker may assist with the sale or acquisition of property.
Customized 1031 focuses on the investment side of the conversation, helping you understand potential strategies and evaluate the options available for consideration.
The objective is to complement the professionals already involved in your transaction, not replace them.
Work Directly With Doug Zator
Doug Zator is the Founder and Managing Director of Customized 1031.
Before founding Customized 1031, Doug served as Director of Business Development for 1031 Exchanges at an alternative investment firm. He has also worked with a Delaware Statutory Trust sponsor, helping educate investors and financial professionals about DSTs and other alternative investments.
That background gives Doug experience with both the exchange process and the investment strategies investors may consider after selling real estate.
His approach starts with understanding the investor first, rather than beginning with a particular investment.
Start Planning
Your Orange County 1031 Exchange
The property or investment strategy you choose next can influence your real estate portfolio long after the exchange is complete.
If you are preparing to sell investment property in Orange County or are already navigating a 1031 exchange, talk with Doug about your priorities and the options available for consideration.