You’ve made the decision to sell your investment property that you have held onto long enough. That’s great! But before you pick up the phone to call a broker or stake a “For Sale” sign in the ground, I’m going to stop you right there. If you’re even thinking about doing a 1031 Exchange, this next part is absolutely critical.
Welcome to Part 2 of my four-part series on 1031 Exchange planning. In Part 1, I explained why over 60% of 1031 Exchanges fail. The main reason? Poor planning—plain and simple. If you haven’t read that yet, go back and start there. If you have, then you understand that timing, strategy, and coordination make or break these transactions.
So, let’s talk about the first steps you must take after deciding to sell. These are the moves that set the foundation for a successful Exchange. They aren’t optional, and they certainly aren’t something you do after your property is on the market. This is where it all begins.
Step One: Consult Your CPA
This is always the first phone call. Not the broker. Not the title company. Your CPA.
Why? Because your CPA has the clearest view of your tax exposure and how a sale will impact your financial picture. Just because you think you’ll owe a lot in taxes doesn’t mean you will. I’ve seen more than a few situations where the tax bill turned out to be smaller than expected and it just made sense to pay the tax.
Your CPA will help you understand your adjusted basis, depreciation recapture, and how the capital gains might be offset by other losses or deductions. They’re going to help you do what’s smartest, not what’s automatic. Bottom line: Let the numbers lead the way. A good tax strategy always starts with math, not emotion.
Step Two: Meet With Your Estate Attorney and Financial Planner
Next, it’s time to zoom out and look at the big picture. If this transaction represents a major liquidity event—which, for most of my clients, it does—then it’s an opportunity to reevaluate your entire financial and estate strategy.
Do you have a living trust in place? Have you structured things so your heirs can benefit from the income stream of your replacement property? Should you consider moving assets now to take advantage of current estate tax exemptions?
This is where your estate attorney and financial planner come in. Together, they can help you preserve generational wealth, minimize estate taxes, and align your real estate investments with your long-term legacy planning. These conversations aren’t just about saving on taxes—they’re about protecting your family’s future.
Step Three: Schedule a Strategy Call with Best 1031 Online
This is the part where experience matters. I’ve helped investors all over the country navigate complex 1031 Exchanges. This is what I do. And this is where I come in.
When you schedule a strategy call with me, we’re going to talk through your timeline, objectives, risks, and opportunities. I’ll help you avoid the common mistakes, like not understanding your identification window, selecting the wrong QI, or underestimating replacement property challenges. More importantly, I’ll help you plan your Exchange based on your goals.
We’ll talk structure. We’ll talk market conditions. We’ll talk about what happens if Plan A doesn’t work—and how we will pivot to Plan B without losing momentum.
This isn’t a sales pitch. This is about execution. You’ve got one shot to get this right. Bringing in someone who’s does it every day just makes sense.
Final Thoughts
Success in a 1031 Exchange isn’t a roll of the dice—it’s the result of proactive planning and precision. And it starts before the property you wish to sell hits the market.
Talk to your CPA. Get your estate and financial advisors aligned. Then, let’s connect. I’ll work with you and your advisors to bring all the moving parts together and build a strategy that keeps your money working for you and your legacy protected.
When you’re ready, reach out to me—James Bean at Best 1031 Online. Let’s make sure your next move is your best one.
We Are Here to Help!
If you are an investment property owner who is interested in a no obligation, private consultation, please visit www.Best1031Online.com, or contact James Bean
of SVN-Rich Investment Real Estate Partners, CA DRE# 01970580, at 805-779-1031
or email at james.bean@svn.com.
If you are an agent/broker, I am happy to discuss strategies with you on how to best serve your next listing client in preparing them for a successful exchange. Please visit the site and click on the Agent’s button located at the top right-hand corner of the Home Page!
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Click here for a Glossary of Terms: https://svn-best1031online.com/glossary/
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All information is deemed to be accurate and is not tax or legal advice. All investors/taxpayers should consult their CPA, tax attorney and investment advisors.
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