🔄 How to Do a 1031 Exchange “Bigger & Better” in Texas 🏢✨

🔄 How to Do a 1031 Exchange “Bigger & Better” in Texas 🏢✨

💼 Texas 1031 Exchange Guide: Upgrade Your CRE Investments 🚀🏠

How to Do a 1031 Exchange “Bigger and Better” in Texas

If you’re a commercial real estate investor in Texas, the 1031 Exchange is one of the most powerful tools available to grow your portfolio. Known as a “like-kind exchange,” it allows you to defer capital gains taxes when you sell one property and reinvest into another. The strategy? Keep moving bigger and better with every transaction.

🔑 What Is a 1031 Exchange?

A 1031 Exchange (named after IRS Code Section 1031) enables investors to sell real estate, roll proceeds into a new property, and postpone paying taxes. Instead of paying Uncle Sam, you put that equity to work in your next deal.

This is especially popular in Texas commercial real estate markets like Katy, Fulshear, and Houston—where population growth, infrastructure investment, and corporate relocations drive long-term demand.

📈 Why “Bigger and Better” Matters

The beauty of a 1031 exchange isn’t just tax deferral—it’s wealth building. By moving into larger, higher-performing properties, you can:

·         Increase rental income

·         Diversify across asset types (multifamily, retail, industrial, office, land)

·         Improve long-term appreciation potential

·         Gain leverage with stronger financing options

Example: Selling a $1M single-tenant retail property → Rolling into a $3M multi-tenant industrial building with higher NOI.

🕒 The Timeline You Can’t Miss

To qualify for the exchange:

·         45 Days – Identify potential replacement properties.

·         180 Days – Close on the new property.

·         Funds must be held by a Qualified Intermediary (QI) (you cannot touch them).

⚖️ Rules of “Bigger and Better”

To maximize benefits, follow these guidelines:

1.      Equal or Greater Value – The replacement property should be worth as much or more.

2.      Reinvest All Proceeds – Use all the equity from your sale.

3.      Replace Debt – If you had a loan on the old property, you must equal or exceed that financing level.

🔍 Texas Market Insights

Texas stands out for 1031 investors thanks to:

·         No state income tax

·         High-growth suburban markets (Katy/Fulshear leading the way)

·         Strong demand in industrial, retail, and multifamily sectors

·         Competitive financing programs

🚀 Final Takeaway

The 1031 exchange is about more than deferring taxes—it’s about leveling up. By reinvesting into larger, better-performing properties, investors in Texas can compound wealth, increase cash flow, and expand their CRE footprint.

If you’re ready to explore a 1031 Exchange in Texas, our team at Viking Enterprise (eXp Commercial) specializes in sourcing replacement properties and structuring financing to maximize returns.

👉 Let’s talk about your next “bigger and better” deal today.

https://www.houstonrealestatebrokerage.com/

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https://www.commercialexchange.com/agent/653bf5593e3a3e1dcec275a6

http://expressoffers.com/[email protected]

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© 2023-2024 Bill Rapp, Broker Associate, eXp Commercial Viking Enterprise Team