Blogs

Partial 1031 Exchange: How It Works, What Gets Taxed, and When It May Make Sense

Paul Getty — Thu, 25 Jun 2026 16:00:01 GMT

A partial 1031 exchange allows real estate investors to defer taxes on a portion of their sale proceeds while accessing the remainder as cash or reducing debt obligations. Unlike a full 1031 exchange -where 100% of the proceeds are reinvested into replacement property of equal or greater value- a partial exchange lets investors meet short-term financial needs without abandoning the long-term benefits of tax deferral entirely. The portion not reinvested is called "boot," and only that portion becomes taxable.

721 UPREIT Options in DST Programs (Part 3)

Paul Getty — Thu, 14 May 2026 15:58:27 GMT

We have previously written two blog posts on 721 UPREIT options which discuss basic concepts which I encourage readers to review prior to reading this blog:

All About the 721 Exchange - Part 1

All About the 721 Exchange - Part 2

In this blog post we will take a deeper dive into due diligence that investors should consider before investing in DSTs with 721 UPREIT option including potential sponsor conflicts, liquidity options, likelihood of a conversion option, and REIT quality.

Can a 9% Taxable Return Beat a 4.5% Tax Advantaged DST?

Paul Getty — Thu, 09 Apr 2026 16:00:02 GMT

This blog post was written by Paul Getty and Ray Simmons.

We often receive questions from clients asking us if it makes sense to forgo a 1031 exchange and invest the remaining after tax funds into a potentially higher yielding non 1031 investment such as dividend paying stock or fund versus investing exchange funds into a Delaware Statutory Trust portfolio.

In this blog post, we welcome the inputs of Ray Simmons whose firm, Exchange Planning Corporation, specializes in analyzing 1031 exchanges to optimize investor tax savings.

How to Avoid the Top Five Mistakes Investors Make When Selecting DSTs

Paul Getty — Wed, 18 Mar 2026 15:55:54 GMT

The five most common mistakes DST investors make are: choosing professionals without real management experience, ignoring historical asset class resilience, chasing potential yield over quality, misunderstanding portfolio risk, and selecting sponsors without a verified track record.

Accelerated Depreciation in Real Estate

Paul Getty — Thu, 19 Feb 2026 18:33:42 GMT

One of the most powerful — and misunderstood — benefits of real estate investing is depreciation. Unlike most asset classes, real estate allows investors to claim a non-cash tax deduction against real cash flow. When structured properly, accelerated depreciation has the potential to significantly increase any after-tax income in the early years of ownership.

What Should Investors Evaluate Before Choosing a DST? A 12-Point Checklist

Paul Getty — Thu, 22 Jan 2026 17:00:00 GMT

A Delaware Statutory Trust (DST) is a legal entity that allows multiple investors to hold fractional ownership interests in institutional-grade real estate, typically as a passive investment or as a qualifying replacement property in a 1031 exchange. DSTs offer access to pre-packaged due diligence, institutional properties, and the ability to complete an exchange in as little as a few days — but not all DSTs are structured equally, and selecting the wrong one can have significant consequences for income, capital preservation, and long-term tax strategy.

New eBook Release: Real Estate Investing in the New Era — Smart Strategies to Build Wealth

Paul Getty — Thu, 15 Jan 2026 16:26:09 GMT

We are excited to announce the release of a brand-new educational resource from Paul M. Getty, President & CEO of FGG1031. The new book, Real Estate Investing in the New Era: Smart Strategies to Build Wealth, is now available as a complimentary download. This guide was created to help both new and experienced investors navigate today’s rapidly evolving real estate landscape with greater clarity and confidence.

What Is Loan-to-Value (LTV) in a DST 1031 Exchange and Why Does It Matter?

Paul Getty — Thu, 18 Dec 2025 18:18:16 GMT

Loan-to-value (LTV) in a DST 1031 exchange is the ratio of the loan on the property to the property's appraised value. For example, a $50 million property with a $25 million loan has an LTV of 50%. LTV matters because it determines how much leverage a DST sponsor is using, which directly affects the risk profile of the investment, the stability of income distributions, and the investor's exposure if market conditions deteriorate.

How 1031 Exchange Proceeds and QI-Held Funds Are Taxed

Paul Getty — Thu, 11 Dec 2025 19:11:15 GMT

In a 1031 exchange, the sale proceeds from your relinquished property are held by a Qualified Intermediary (QI) while you identify and close on a replacement property. Those funds are not taxable while they sit with the QI — but two specific events can create a tax liability: receiving cash back when not all proceeds are reinvested, and earning interest on funds while they are held. Understanding how both are treated before your exchange closes is the most reliable way to avoid unexpected tax bills.

The Role of 1031 Exchanges in Succession Planning for Family-Owned Real Estate Businesses

Paul Getty — Thu, 30 Oct 2025 16:00:00 GMT

Consider the following scenario: A family has built a successful real estate business over decades, acquiring and managing a portfolio of investment properties. As the founders approach retirement, a new challenge arises—how to pass the business to the next generation without triggering a large tax bill or fracturing the family’s financial future.