When it comes to building long-term wealth through real estate, one of the most powerful strategies in the playbook is the 1031 Exchange.
Whether you're an experienced investor or just starting to scale your portfolio, understanding how to defer capital gains taxes—and reinvest your full equity—can be the difference between slow growth and smart acceleration.
In this blog series, I’ll break down everything you need to know about 1031 Exchanges—from the basics to the advanced tactics—so you can make confident, well-informed decisions in today’s competitive market.
So… What Is a 1031 Exchange?
A 1031 Exchange, named after Section 1031 of the IRS tax code, allows real estate investors to sell one investment property and reinvest the proceeds into another—without paying capital gains taxes at the time of sale.
That’s right—you can legally defer thousands (or even hundreds of thousands) of dollars in taxes, and use those savings to scale into a better, more profitable property.
But there’s a catch:
The IRS has strict rules and tight timelines that must be followed.
And if you miss a step, you could lose the tax benefits entirely.
Why It’s Making Headlines
According to The Wall Street Journal, high-net-worth investors and institutional firms alike are using 1031 Exchanges to strategically reposition their real estate portfolios.
Meanwhile, The New York Times has reported on policy debates that may affect the future of 1031s—making it even more important for individual investors to use this tool while they still can.
The Real Deal also highlights how NYC developers are using 1031s to exchange into new developments, diversify holdings, and reduce risk in the current market.
In other words—this strategy isn’t just smart. It’s mainstream.
What You’ll Learn in This Series
This 10-part blog series is your blueprint for understanding and applying 1031 Exchanges, especially here in Brooklyn and New York City. Here’s what’s coming up:
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1031 Exchange Basics: A Beginner’s Guide
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Timeline & Deadlines You Can’t Miss
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What Qualifies as Like-Kind Property
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The Role of a Qualified Intermediary
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Using 1031s to Build Wealth Over Time
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New Construction & Development Exchanges
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Reverse 1031: Buy First, Sell Later
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Avoiding Common Mistakes
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Is a 1031 Exchange Right for You?
📞 Let’s Connect
If you're considering selling an investment property—or you're just curious if a 1031 Exchange might make sense for your situation—I’d love to help.
As a Brooklyn real estate expert and member of both REBNY and the Brooklyn MLS, I help investors across NYC make smart, tax-savvy real estate moves every day.
👉 Contact me at [email protected] or 917.916.5126
👉 Follow the full vlog series on YouTube: @pmpenrealty
Stay tuned for next week’s post:
“1031 Exchange Basics: Everything a Beginner Needs to Know
