A 1031 exchange allows real estate investors to sell a property and reinvest the proceeds into a new property without incurring immediate tax liability. This allows investors to defer capital gains taxes and potentially increase their cash flow, while also providing greater flexibility and more investment options. By completing a 1031 exchange, investors can keep 100% of their net proceeds available to reinvest in other like-kind (investment) replacement properties and reallocate, consolidate, or diversify their investment portfolio.
