04/13/2026
Most investors know a 1031 exchange can defer capital gains taxes. Fewer understand the rules well enough to use it strategically, and that surface-level understanding often costs real money.
In this episode, I break down the framework behind a proper 1031 exchange, including the timelines that trip people up (45 days to identify, 180 days to close), why you can’t touch the funds, and the most common mistakes that cause exchanges to fail or force investors into rushed, underperforming replacement properties.
Then we go a step further into an advanced structure most investors haven’t heard of: the Improvement Exchange (sometimes called a construction exchange). When structured correctly, it can allow investors to exchange into a new-build or major renovation where improvements completed during the exchange period count toward the replacement value, a powerful way to upgrade a portfolio instead of simply “checking the tax box.”
If you’re considering selling an appreciated rental and want to redeploy into a higher-performing asset, this is worth understanding before you list your property. As always, talk with your CPA and a qualified intermediary early in the process.
If you want to compare options or see what The Peak Group has in the pipeline (completed deals and select pre-construction opportunities), reach out! Email us at [email protected].
Watch the full episode from the link in our bio!
