I often get asked, “What is a 1031 Exchange?” I love how this article explains it in neat and simplified terms. If you are interested in learning more or have an interest in purchasing investment property with a 1031 Exchange, please reach out to me or one of our other agents and we would be happy to help!


Ashlee Montgomery

REALTOR®, Blue Collar Commercial Group




A 1031 Exchange is a potential option for investors who may be interested in deferring taxes when selling an investment property. By reinvesting the proceeds into another investment property, investors have the opportunity to take advantage of real estate market opportunities without having to pay taxes on their profits immediately. It is important to note, however, that this strategy comes with strict rules that must be followed carefully in order to ensure a successful exchange.


In order to be considered for a 1031 Exchange, the properties involved may need to be investments and not for personal use. Additionally, it is generally required that the properties be like-kind, although they do not have to be exactly identical.


There are many different types of investments that could potentially qualify for a 1031 Exchange. For instance, an investor may choose to exchange a multi-family apartment complex for a shopping center, or a commercial office building for a rental property. Ultimately, the specific circumstances of each investor’s situation will determine whether or not a 1031 Exchange is the right choice.


The timing of a 1031 Exchange is crucial, and investors should aim to identify a replacement property within 45 days of selling the original property, with the exchange being completed within 180 days of the sale.


Working with experienced real estate professionals who have knowledge and expertise in 1031 Exchange transactions can be helpful, as mistakes can be costly if the rules are not followed precisely. While a 1031 Exchange can be a valuable strategy for investors, it is important to keep in mind that individual circumstances can vary, and it may be wise to seek personalized tax advice from a Certified Public Accountant (CPA) or tax advisor to determine if this strategy is suitable for a particular investor.

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At Blue Collar Commercial Group, we don’t just work in the Texas Hill Country commercial market—we live here. Our deep-rooted understanding of this unique market, combined with our unmatched expertise in commercial real estate, positions us as your ideal partner for navigating the complexities of office space selection.

From identifying your perfect office space to closing the deal with confidence and ease, our team of seasoned commercial real estate professionals is dedicated to guiding you every step of the way.

Ready to make your mark in the Texas Hill Country commercial real estate landscape?

Contact Blue Collar Commercial Group today. Let us empower you with the insights, resources, and personalized support needed to turn your commercial real estate aspirations into reality.

Reach out to us now and embark on your journey toward commercial real estate excellence in Texas Hill Country.

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About the Author: Ashlee Montgomery

Ashlee Montgomery
Ashlee Montgomery, a true Texan, boasts over 15 years of experience living and working in the Hill Country. Her journey into real estate was preceded by a career in education, after graduating from Texas A&M Corpus Christi and teaching school in the Bulverde area. Ashlee’s deep understanding of the building process comes from growing up in a home-building environment, observing and learning from her father. This unique background equips her with insights into construction costs, timelines, subcontractor management, and handling delays—expertise that sets her apart in the real estate field. Embracing commercial real estate as a venue for continued learning and growth, Ashlee is committed to leveraging her comprehensive knowledge to overcome challenges and meet her clients’ needs.

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