1031 Tax Deferred Exchange

WHY 1031 EXCHANGE?

Keep the gains, keep the cash flow—trade, don’t trigger tax.

Section 1031 lets investors defer capital-gains and depreciation-recapture taxes by rolling proceeds into “like-kind” real estate. The scale is enormous: industry analysts estimate more than $100 billion of U.S. property changes hands through 1031 exchanges each year . Within that universe, Delaware Statutory Trusts (DSTs) now represent 95 % of securitized 1031 equity—and have grown from $9.1 billion (2017-20) to $21.6 billion (2021-23). For investors who want passive ownership, fractional diversification, and tax efficiency, DSTs turn one-off trades into programmatic wealth-building.

STRATEGY SNAPSHOT

How our Fund-to-DST pathway works.

  • Stabilize the Asset – RREI acquires or develops healthcare, hospitality, or housing properties and executes value-creation plans.
  • Roll to DST – Once cash flow is seasoning, we transfer the asset into a DST structure, creating 1031-eligible “units.”
  • Tax-Deferred Exit – Accredited investors exchange into the DST, while early-stage LPs harvest gains without immediate tax.
  • Recycle Capital – Sale proceeds flow back into the next acquisition, fueling a repeatable growth engine for the fund.

WHY NOW?

Record equity inflows and looming tax changes.

  • Growth Surge – DST fundraising eclipsed $619 million in May 2025 alone, keeping pace with a YoY growth rate above 50 %.
  • Rate Opportunity – Cap-rate widening versus Treasuries is boosting DST cash yields just as demand for passive, bond-like income accelerates.
  • Policy Cloud – With potential 2025 tax-code revisions on the horizon, informed owners are locking in 1031 flexibility while the rules remain intact

OUR EDGE

Why Responsible Real Estate Investment delivers compliant, high-quality 1031 opportunities.

  1. Vertical Expertise – Physician-anchored healthcare, mission-critical hospitality pads, and institutional BTR housing—asset classes 1031 buyers favor for long leases and resilient tenant demand.
  2. Programmatic Disposition Pipeline – Once assets reach stabilization, RREI may elect to sell into a DST structure or via direct sale, supplying institutional-grade inventory for exchange buyers while providing the fund a market-based exit. Proceeds are distributed to fund investors, who determine their own tax strategy.
  3. Legal Compliance First – RREI engages leading DST counsel and qualified-intermediary partners to structure offerings that satisfy IRS Revenue Ruling 2004-86 and FINRA guidance, ensuring every 1031 pathway meets the highest regulatory standard.
  4. Direct-Ownership 1031 Flow – Our net-lease acquisition platform sources single-tenant NNN assets expressly suitable for individual 1031 exchanges, giving family offices and accredited investors the choice of turnkey DST units or deeded, direct-ownership replacements.

OUR PARTNERS CAPITAL IN MOTION – YOUR NEXT MOVE

Keep gains compounding, keep control, keep taxes deferred.

  • Family Offices — Defer capital gains while reallocating into institutional-grade healthcare, hospitality, and housing through turnkey DST interests or deeded NNN assets—no day-to-day management required.
  • Co-GP Sponsors & Developers — Recapitalize stabilized projects via DST dispositions, unlock equity for the next ground-up venture, and maintain operational control under long-term NNN leases.
  • CRE Investors — Exchange out of legacy holdings and into professionally managed, high-quality properties that preserve income, broaden diversification, and keep taxes deferred. Direct Ownership NNN assets starting at $5M or DST offerings starting at $100K
  • Accountants & CPA’s — Have clients facing sizeable capital gains? Partner with RREI to introduce compliant 1031 / DST solutions and direct ownership NNN assets that protect their tax position while adding value to your advisory practice.
  • Limited Partners —Accredited Investors
    • Option 1: Managed Fund – Commit $50,000+ to our diversified fund strategy, with the potential for DST-based exits that return capital and share in DST fee upside.
    • Option 2: Direct DST – Invest $100,000+ of 1031 proceeds directly into our institutional DST offerings—receive fractional ownership, monthly distributions, and hands-off stewardship.

Connect with Responsible Real Estate Investment today to review live 1031 and DST opportunities and deploy capital the responsible way.