Navigating a 1031 Exchange · Multifamily Agent Academy

Navigating a 1031 Exchange

My client sold their property for $1,450,000, netting $1,360,000 after commissions and closing costs. Since the property was owned outright, no debt was involved.

After consulting with our agents and a 1031 exchange accommodator, the client is reinvesting into a replacement property valued at $1,400,000—less than the sale price but exceeding their net proceeds, meeting exchange requirements.

If the sold property had an existing loan, would this affect the replacement property's required value, or is the reinvestment threshold always based on net proceeds?

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