deciding whether to reinvest

Not Sure you'll exchange? Keep the option open.

A 1031 exchange can't be added after closing—but it can be walked away from. If there's any chance you'll buy another investment property, the smart move is to close with a Qualified Intermediary in place.

The one-way door: the moment sale proceeds touch your account, tax deferral is off the table—permanently. The IRS requires a Qualified Intermediary to receive and hold your funds from the day you close. There is no adding one later.

This is why we offer the option to close with NextPhase as your Qualified Intermediary, then decide whether you want to reinvest.

Not Sure Yet?

Close with NextPhase as your QI. Then decide.

You close on your sale

Proceeds are wired directly to a segregated escrow account in the name of the QI. You never take receipt of the money—that's exactly what keeps the exchange valid.

Day 0

You look—and you have more than one way to land it

Identify in writing within 45 days. A replacement doesn't have to be a property you hunt down with your agent—you can also step into a professionally managed DST for passive income, or convert into a REIT through a 721 exchange. Three routes to the same tax deferral.

1-45

If Any Option Fits

Your Taxes Stay Deferred

Close on a property, a DST, or a 721 REIT conversion within 180 days and defer capital gains and depreciation recapture—keeping your full equity working.

$1,200

Flat fee, charged only when we process your exchange

If None of them Fit

Your Funds Come Back to You

If none of the options work for you by day 45, your funds are returned promptly once the identification period ends. You're back where you started—you just pay the tax you'd have owed anyway.

No fee if nothing is identified and your funds are returned

Straight Answers—read before you decide

Your funds are held for the full 45 days. They can't be released early, even at your request—that restriction is what makes an exchange valid in the eyes of the IRS. If you identify a property and the purchase later falls through, funds generally remain in escrow until the 180-day exchange period ends.

Deadlines are firm. Both windows run in calendar days—weekends and holidays included—and cannot be extended. DST and REIT conversions involve securities and suitability considerations. This is general information, not tax, legal, or investment advice—talk with your CPA and financial advisor about your situation before you close.

Keeping Options Open

deciding whether to reinvest

Not Sure you'll exchange? Keep the option open.

Not Sure Yet?

Close with NextPhase as your QI. Then decide.

On the fence? Get covered before you close.