5 Mistakes 1031 Exchange Buyers Should Avoid

A 1031 exchange can preserve significant capital gains taxes — but mistakes can become very expensive.

Here are five common mistakes investors should avoid when purchasing self-storage during a 1031 exchange.

❌ Mistake #1: Waiting Too Long

Many investors underestimate how quickly deadlines arrive.

Remember:

Preparation matters.

❌ Mistake #2: Focusing Only on Occupancy

A 95% occupied facility may still have:

Look deeper than occupancy alone.

❌ Mistake #3: Ignoring Market Fundamentals

Evaluate:

Good markets matter.

❌ Mistake #4: Rushing Due Diligence

Under time pressure, some investors skip:

That can create major problems later.

❌ Mistake #5: Choosing the Wrong Financing

Lender delays can jeopardize exchange timelines.

Strong lender relationships are critical.

Example Scenario

Investor sells an apartment property and enters a 1031 exchange.

Instead of rushing into the first available deal, they:

Result:

Self-storage can be an excellent 1031 replacement property when approached strategically.

Brandon Robinson and the team at Calvary Realty help investors nationwide identify self-storage opportunities for 1031 exchanges.

📞 909-719-0399