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  • Reinvest 100% of proceeds:The value of the investment commercial real estate being purchased must be equal to or greater than the value of the commercial real estate being sold.

  • The equity ( commercial real estate value minus loan balance) in the new commercial real estate must also be equal to or greater than the equity in the old commercial real estate. In other words, the loan amount on the new commercial real estate must be equal to or greater than the loan amount on the commercial real estate being sold.

  • Third 1031 Exchange Requirement: exchangers must use a Qualified Intermediary. An Intermediary will hold the funds and provide technical experience to maintain the integrity of the exchange.

  • Fourth 1031 Exchange Requirement: Exchanged commercial real estate must be like kind. The IRS definition of Like-Kind is any commercial real estate held for productive use in a trade or business or held for investment purposes.

    The successful completion of a 1031 exchange into tenant in common ownership is best facilitated by a 1031 realtor who specializes as a Replacement commercial real estate Specialties. Contact us today to complete your 1031 exchange.