To read this as a blog

To watch it as a video

In this episode, Tim Vi Tran, SIOR, CCIM, breaks down how different types of boot—cash, debt relief, and non–like-kind property—are taxed, why depreciation recapture and capital gains are treated differently, and how the order of taxation affects what you keep in your pocket. You’ll hear practical scenarios for Bay Area commercial real estate owners, when to avoid boot to maximize deferral, when taking boot can improve portfolio fit or liquidity, and a simple “2/3 rule of thumb” for estimating after-tax cash. We’ll also walk through a pre-, during-, and post-exchange checklist so you can better coordinate with your qualified intermediary, CPA, and legal team.

To learn how these strategies play out in real-world deals, you can access, for a small fee, detailed case studies here: 👉 https://theivygroup.com/course-category/deal-structure-1031-exchange/

👉 Subscribe to The Ivy Group newsletter: https://theivygroup.substack.com/ 📩 Contact The Ivy Group: https://theivygroup.com/contact-us/

About The Ivy Group The Ivy Group specializes in commercial sales, leasing, and investment advisory across Fremont, Silicon Valley, and the Greater Bay Area.

Commercial real estate deals require expertise across investment strategy, financing, negotiation, taxes, legal structure, and portfolio alignment. With more than 100 years of combined experience, and designations including SIOR and CCIM, The Ivy Group provides strategic guidance for complex 1031 Exchanges and commercial real estate transactions. When you need to sell, buy, or lease, The Ivy Group is ready to help you reach your goals. The Ivy Group is ready to support your next purchase, sale, or lease.

📩 Have a real estate need or question? Contact The Ivy Group.

All information in this episode, and in related articles, blogs, courses, and case studies, is intended for general education only and not as tax, legal, or investment advice. Always consult licensed tax, legal, accounting, and financial professionals before taking action.

Copyright © 2025 by Tim Vi Tran, SIOR, CCIM. All rights reserved.

To watch this short intro as a 2-min video

Access full case studies for a small fee.

Access detailed case studies for a small fee: https://theivygroup.com/course-category/cre-strategies-tactics/

Commercial real estate deals require expertise across investment strategy, financing, negotiation, taxes, legal structure, and portfolio alignment. With more than 100 years of combined experience, The Ivy Group is ready to support your next purchase, sale, or lease.

📩 Have a real estate need or question? Contact The Ivy Group.

All information in this episode, and in related articles, blogs, courses, and case studies, is intended for general education only and not as tax, legal, or investment advice. Always consult licensed tax, legal, accounting, and financial professionals before taking action.

Copyright © 2025 by Tim Vi Tran, SIOR, CCIM. All rights reserved.

In Part 1, we explored how savvy investors use the 1031 Exchange as a tax deferral tool and why the step-up in basis can eliminate capital gains and depreciation recapture when transferring property to heirs.

This episode continues the conversation by unpacking two major topics investors often overlook: how estate taxes interact with inherited 1031 properties, and how boot tax is triggered when exchange proceeds aren’t fully reinvested.

To read it as a blog

To watch it as a 16-min video

Interested in learning how these rules apply in real, complex scenarios? Access case studies for a small fee to see real-world applications of 1031 Exchange rules, timing, and structuring.

In this breakdown, you’ll learn:

• The difference between the step-up in basis for income tax and how federal and state estate tax rules apply

• Why some states impose additional estate or inheritance taxes with lower exemption thresholds

• What happens when less than 100 percent of proceeds in a 1031 Exchange are rolled forward

• The three primary sources of boot: cash boot, debt boot, and non-like-kind property

• When closing costs absorb potential boot versus when they trigger taxable boot

• How taxable gain is calculated, including depreciation recapture vs. capital gain

• Real examples showing the math behind recognized gain, deferred gain, and basis in the replacement property

• Why sometimes intentionally taking boot can be the smarter strategic move

In the final episode of this mini-series, we’ll answer:

1. How the IRS prioritizes ordinary income tax, capital gain, cash boot, debt boot, and non-like-kind property

2. Why boot isn’t automatically negative, and when it can be part of a strategic acquisition approach

Real estate investing isn’t just about knowing the rules. It’s about applying them to transactions with moving deadlines, changing numbers, and evolving goals. Just like learning a sport, understanding the playbook isn’t enough. Execution matters.

If you’d like to see how these rules play out in real-world transactions, you can access detailed case studies for a small fee.

Commercial real estate deals require expertise across investment strategy, financing, negotiation, taxes, legal structure, and portfolio alignment. With more than 100 years of combined experience, The Ivy Group is ready to support your next purchase, sale, or lease.

📩 Have a real estate need or question? Contact The Ivy Group.

All information in this episode, and in related articles, blogs, courses, and case studies, is intended for general education only and not as tax, legal, or investment advice. Always consult licensed tax, legal, accounting, and financial professionals before taking action.

Copyright © 2025 by Tim Vi Tran, SIOR, CCIM. All rights reserved.

In this real case study, (👉 Access the full article and video (small fee): https://theivygroup.com/course-category/property-site-selection/) Tim Vi Tran, SIOR, CCIM breaks down how negotiation discipline and market timing turned inherited challenges into long term gains. The transaction closed $100K over asking, overcame environmental unknowns, competitive bids, and even a late-stage legal surprise.

If you own inherited or aging commercial real estate, the FULL case study demonstrates what’s possible with the right approach.

Get the full playbook, including negotiation logic, environmental strategy, and the exact 1031 execution process:

👉 Access the full article and video (small fee): https://theivygroup.com/course-category/property-site-selection/ 👉 Subscribe to The Ivy Group newsletter: https://theivygroup.substack.com/ 👉 Contact us: www.TheIvyGroup.com

Your portfolio can shift, scale, and strengthen with the right strategy.

The Ivy Group | Commercial Properties, Above & Beyond.

The Ivy Group specializes in commercial sales, leasing, and investment advisory across Fremont, Silicon Valley, and the Greater Bay Area. With over 100 years of combined experience and designations including SIOR and CCIM, The Ivy Group provides strategic guidance for complex transactions in commercial real estate.

Copyright © 2025 by Tim Vi Tran, SIOR, CCIM. All rights reserved.

🔥 How did Hyundai secure the right Bay Area site in one of the tightest CRE markets in years?

Spoiler: It took more than touring buildings. It took a data-driven site selection model, drive-time analytics, workforce analysis, and… a rare dual-agency scenario handled with precision and transparency.

This case shows where commercial real estate is headed:

➡️ proprietary data

➡️ human strategy

➡️ ethical negotiation

➡️ trust

The result?

✔ Hyundai found the right location

✔ The landlord landed a world-class tenant

✔ Both parties accelerated decisions and reduced risk

Want to go deeper into the methodology, decision framework, and negotiation process behind this deal?

🔔 Stay ahead in CRE: Subscribe to The Ivy Group newsletter

👉 https://theivygroup.substack.com/

🤝 Have a property need? Contact us:

👉 www.TheIvyGroup.com

To read it as a 1-min short intro blog: https://theivygroup.com/our-case-studies/data-driven-site-selection-hyundai-fremont-technology-center-dual-agent-tim-vi-tran/

To watch it as a 2-min short intro video: https://youtu.be/BCRKJx9RhR0

To listen as a 2-min podcast: https://theivygroup.com/our-podcast/site-selection-data-driven-hyundai-fremont-technology-center-dual-agent-tim-vi-tran/

🎥📄 Access the full article + companion video (small fee): https://theivygroup.com/course-category/property-site-selection/

To read it as a 1-min short intro blog

To watch it as a 3-min short intro video

👉 Access the full case study and video (available for a reasonable fee)

👉 Subscribe to The Ivy Group newsletter

Here is the distilled version of how strategy, analysis and decisive action changed the ending.

Inside this breakdown: • Why leasing made less financial sense than selling, despite a proposed Starbucks lease • How a multi-owner group came to a consensus • Eight offers, one standout: buyer with 1031 exchange funds and a deadline-driven profile • How we protected price during negotiations with a 1031 exchange buyer • The last-minute city lien that blocked the transfer and how it was removed • What transformed a distressed, 100 percent vacant building into a marketable asset

To walk you through our decision matrix, negotiation framework and lien resolution process:

👉 Access the FULL case study and the accompanying video (for a reasonable fee): https://theivygroup.com/product-category/deal-structure-1031-exchange/

The Ivy Group | Commercial Properties, Above & Beyond.

👉 Subscribe to The Ivy Group newsletter: https://theivygroup.substack.com/ 👉 Contact us: www.TheIvyGroup.com

#1031Exchange #Lien #CommercialRealEstate #CREInvesting #RealEstateStrategy #DistressedAssets #TheIvyGroup #CaseStudy #timvitran #theIvyGroup

👉 Access the full case study and video (available for a reasonable fee)

👉 Subscribe to The Ivy Group newsletter

The Ivy Group is a commercial real estate brokerage specializing in sales, leasing, and investment advisory in Fremont, Silicon Valley, and the greater San Francisco Bay Area. With over 100 years of combined experience and designations including SIOR and CCIM, the team delivers strategic solutions for complex transactions with deep expertise in investment, technology, and engineering.

Ready to sell, buy, or lease a commercial property? Reach out here

Copyright ©️ 2025 by Tim Vi Tran, SIOR, CCIM. All rights reserved.

👉 Access the full case study and video (available for a reasonable fee)

👉 Subscribe to The Ivy Group newsletter

After nearly a decade of running a successful pharmacy business in San Jose, CA, the owner dreamed of buying her building. But when the landlord refused to sell—and threatened a steep rent hike at lease renewal—she turned to The Ivy Group for a bold strategy.

The solution? A power move: purchase the medical condo next door before the lease expired.

Using a 1031 Exchange, the pharmacist sold a residential duplex in Tucson, AZ to buy the neighboring suite. Two months before her lease ended, she notified the landlord of her plan to vacate.

Then the tables turned. The landlord, facing pressure and timing constraints, finally agreed to sell.

The case reveals how negotiation leverage, timing, and 1031 exchange tax rules intersect to create unexpected outcomes. In this instance, everyone in the deal chain—the pharmacist, the landlord, and the up-leg sellers—were all executing 1031 exchanges under tight IRS deadlines. A single missed date could have derailed the entire sequence.

Learn how strategic positioning, expert timing, and tax-savvy investment can turn rent into ownership—and build generational wealth.

👉 Access the full case study and video (available for a reasonable fee)

👉 Subscribe to The Ivy Group newsletter

The Ivy Group is a commercial real estate brokerage specializing in sales, leasing, and investment advisory in Fremont, Silicon Valley, and the greater San Francisco Bay Area. With over 100 years of combined experience and designations including SIOR and CCIM, the team delivers strategic solutions for complex transactions with deep expertise in investment, technology, and engineering.

Ready to sell, buy, or lease a commercial property? Reach out here

Copyright ©️ 2025 by Tim Vi Tran, SIOR, CCIM. All rights reserved.

A $1.22M Silicon Valley commercial property acquired entirely through smart use of OPM. This fast-turn case highlights how a distressed seller’s three-week deadline opened the door to inventive deal structuring. With seller financing covering most of the purchase and title transferring immediately, the final equity hurdle was met through the tenant’s prepaid rent, reclassified as a security deposit instead of coming from the buyer.

The outcome: a prime asset delivering steady cash flow, corporate-backed tenancy, tax efficiency, and long-range value growth, all driven by rapid execution and strategic financing design.

👉 Access the FULL case study and the accompanying video (for a reasonable fee): https://theivygroup.com/courses/ (“Creative Financing”) The Ivy Group | Commercial Properties, Above and Beyond. 👉 Subscribe to The Ivy Group newsletter: https://theivygroup.substack.com/ 👉 Contact us: www.TheIvyGroup.com

Tim’s background as both a broker and investor gave him the tools to analyze the property, structure unconventional financing, and execute quickly — a key advantage in competitive Silicon Valley commercial real estate.

What started as a distressed situation became a trophy asset with strong cash flow, Fortune 500 backing, and significant tax benefits. This deal shows the power of creative financing with OPM in commercial investment property deals.

A commercial real estate brokerage in Fremont, CA, serving Silicon Valley and the Bay Area with over 100 years of combined expertise in sales, leasing, and investment advisory. SIOR and CCIM designations. The Ivy Group delivers strategic solutions for complex real estate needs with professionalism and integrity. When you need to sell, buy, or lease a commercial property, the Ivy Group is ready to help you reach your goals with more than 100 years of combined experience in real estate, deep market insight, expertise in investment, technology and engineering.

Contact us with your next real estate needs.

📌 Visit our website: https://theivygroup.com/

📌 Subscribe to our newsletter: https://theivygroup.substack.com/

👉 Contact The Ivy Group: https://theivygroup.com/contact-us/

Copyright ©️ 2025 by Tim Vi Tran, SIOR, CCIM. All rights reserved.