Real Estate Information |
|
Will a 1031 Property Exchange Solve Your Problems?
If your problem is listed below, a 1031 exchange may or may not be your solution. 1. Are you a landlord that doesn't want to manage property anymore? 2. Do you want to sell your investment property, but don't want to pay huge amounts of Capital Gains Tax? 3. Is your current income property not producing enough income? 4. Do you have a low adjusted basis and not much debt on your rental? 5. Is your credit rating less than perfect? If you answered yes to any of the above 5 questions, a traditional 1031 property exchange into another like-kind property might just put you right back to square one! Let's address each of the 5 problems one at a time. 1. If you exchange your current property for another of equal or greater value you still are faced with the same landlord/tenant problems that you currently have. Sure, you could hire a property manager, but why is it that you currently don't have one? 2. A 1031 property exchange into a like-kind property does defer the payment of Capital Gains tax if you carry over all your equity and at least the same amount of debt. However, since your new property costs you at least as much as you sold the last for, your property taxes will most likely increase. The cost of your new investment has probably just gone up. 3. If your positive cash flow is currently nothing to write home about, your new property will have to justify higher rents, be located in an area with lower property tax, or have fewer maintenance costs. Otherwise, the chances of additional passive income are very slim. 4. Your adjusted basis will carry over as is to the new property, so you will receive the same depreciation benefits as on the prior property, unless you pay more for your exchanged property. Most likely a wash. 5. A poor credit score may result in a higher interest rate or poorer terms on your new mortgage, assuming you don't own your current property free and clear. Again, this translates into higher ownership costs. You will also pay two sets of closing costs in the transaction. One more thing to consider is the time it may take to sell your current property, find a replacement property and secure all funding. This must be done within the 1031 specific time frames. Think of the times that escrows have fallen through and loans have dragged on forever and sometimes never closed at all. Considering your dilemma and possible pros and cons, will a 1031 property exchange put you farther ahead, further behind, or at best put you right back in the same boat you are in now? If the answer to the last question was not "farther ahead", let me suggest that you look into a 1031 exchange that has a slightly different twist. It's called a 1031 exchange into a tenant in common property. This might just put you in the "farther ahead" category and solve many of your problems. Instead of exchanging into another solely owned investment property, you will get a fractional proportionate share of an A grade commercial property. You will have a deeded interest equal to your share of ownership (your exchange amount). If done properly: 1. You will no longer be responsible for the property management 2. All capital gains will be deferred. 3. You can get a contractual monthly income from the equity transferred (usually 6-7%) 4. Your carryover basis is the same, but you can acquire extra non- recourse debt without qualifying and receive a higher interest deduction on your monthly income, thus making it less taxable. 5. The debt you acquire with the TIC (assuming your debt/equity ratio is within the accepted guidelines does not require you to obtain a mortgage or pay it down. This is called non-recourse debt. Your credit score does not become a factor, and the closing can be done in a matter of days, not weeks or months. Now, ask your self again. Would a 1031 exchange into a tenant in common solve your problems? If the answer is "yes", what are you waiting for? How much would you pay to save thousands in Capital GainsTax? I'll teach you for free in a Teleconference that may change your life. Sign up at ==>http://www.savegainstax.com - Defer Capital Gains Tax
MORE RESOURCES: Banks Believe They Are Well-Prepared for Commercial Real Estate Fallout The Wall Street Journal Real-Estate Agents, Investment Advisers Chafe at New Anti-Money-Laundering Rules The Wall Street Journal Real-estate agent explains new fees to homebuyers, he's not worried Business Insider Homie, the Utah company meant to 'disrupt' real estate, calls it quits with employees Salt Lake Tribune Former HGTV star from Los Gatos sentenced in $10M real estate fraud case CBS San Francisco 'It was surprising.' Metro Detroit man caught up in real estate scam; here's how to protect yourself WXYZ 7 Action News Detroit Dr. Phil left speechless after real estate agent claims that squatting is justified by colonization New York Post Downtime: Pairing wine and real estate RichmondBizSense Real estate expert says several factors impact farmland prices brownfieldagnews.com How environmental insurance diligence can shape commercial real estate transactions Insurance Business Top 25 Columbus Residential Real Estate Deals for January 2024 Columbus Monthly Celina’s first Walmart to be part of bigger vision for fast-growing city The Dallas Morning News Favourable Signals For Bridgemarq Real Estate Services: Numerous Insiders Acquired Stock Yahoo Finance How Real Estate Helped Taylor Swift Become A Billionaire Yahoo Finance Darien and Rowayton Real Estate Report: April 11 to 18 darienite.com SAGE Investment Real Estate Advisors sells 24-unit Bergen County garden-apartment complex ROI-NJ.com Big Tech Is Downsizing Workspace in Another Blow to Office Real Estate The Wall Street Journal EG Real Estate: Busy Spring Market – East Greenwich News East Greenwich News Inside Chris Pratt and Katherine Schwarzenegger's Real Estate Portfolio Architectural Digest Robin Hunden of Hunden Partners honored with Jeffrey D. Fisher Real Estate Legacy Award from Indiana University's ... Daily Herald LOCAL REAL ESTATE TODAY 4.19.24 – KQEN News Radio kqennewsradio.com Oregon Senate strengthens consumer protections in real estate transactions Curry Coastal Pilot An investigation into the University's controversial real estate holdings Johns Hopkins News-Letter SVN|J. Beard Real Estate adds chief investment officer to Houston office – REJournals REjournals.com See the latest Coles County real estate transactions Journal Gazette / Times-Courier Two Weichert real estate agents in Willmar recognized for work in 2023 West Central Tribune Real Estate Broker Commission Settlement ClassAction.org Real estate brokerage firm Marcus & Millichap arranges $12.8 million sale of Fayetteville, NC mobile home park ... Greater Fayetteville Business Journal S.F. housing market: Still very few homes, selling even faster San Francisco Chronicle Prologis Warns of Slowing Industrial Real-Estate Market The Wall Street Journal Who's Had a Harder Time Buying a Home: You or Your Parents? The New York Times Navigating the changing role of real estate agents WISH TV Indianapolis, IN Housing Market Predictions for 2024 & 2025 Remain Subdued Norada Real Estate Investments How Alexico's $180 Million Deal With St. Francis College Fell Apart The New York Times Meet Samantha: Your A.I. Real Estate Agent of the Future The World Property Journal Solano Real Estate Scene: Homelessness, drug addiction and Theft Reduction Act Fairfield Daily Republic PICTURES: See Inside Johnny Cash's Spectacular Real Estate Holdings Taste of Country Richland County OH real estate transactions recorded April 5-12, 2024 Mansfield News Journal Robert Bailey on Real Estate TPG Online Daily CRE Broker Magazine: a New Beacon for Commercial Real Estate Professionals Announced by Massimo Group Markets Insider Quintana Roo announces important investments in Tourism and Real Estate The Yucatan Times Real estate transfers GoDanRiver.com Owatonna named finalist in state real estate awards Southernminn.com 21 Largest Real Estate Companies in the World Yahoo Finance Welcome to Real Estate Friday! theberkshireedge.com Importance of home inspections in Indianapolis real estate WISH TV Indianapolis, IN Toles, Temple & Wright Welcomes David Tucker as Newest Real Estate Agent Northwest Georgia News Long-term exclusive property listing contracts now illegal in Arizona The Arizona Republic Chicago-area home sales plunged last month Crain's Chicago Business Regional Realty Firm To Close Verona Office MyVeronaNJ Navigating real estate market corrections RealtyBizNews Real estate transactions: Week of April, 2024 | Construction / Real Estate | insidetucsonbusiness.com Inside Tucson Business China’s real estate investments decreased by 9.5% y/y in Q1 GMK Center | English RI real estate transactions: What homes sold, for how much and to whom The Providence Journal $8.3 million Oceana condo leads this week's Key Biscayne and Brickell real estate deals Islander News.com Illinois attorney general sues MV Realty that's tied to Chicago's Monroe Capital - Chicago Sun-Times |
RELATED ARTICLES
Should You Sell Your Home Yourself? Are you thinking about selling your home? Would you like to sell it by yourself instead of hiring a real estate agent? If so it would be beneficial to review the pros and cons of selling your home by yourself before hanging out the sign.PROSSelling your home without an agent means More Money. Moldy Homes are a Great Investment Have you seen this in your classifieds? -"Will pay $$$ for moldy homes. Call 555-555-5555"All you have to do is watch the news and you know about mold problems. Guide To Finding Maui Waterfront Property Have you ever dreamed of living in a spectacular tropicalparadise where you spend your days sitting on a beachwatching the waves roll in? Where the air is clean, theclimate always warm and your neighbors are always welcomingyou with warm smiles and sincere hellos? The place you'vealways dreamed of is probably Maui. Whether you're lookingfor a waterfront vacation property, a new place to live andwork or are considering options for retirement, purchasinga Maui waterfront property could be the answer to yourtropical paradise dreams. Real Estate Professional in the Palm of Your Hand GETTING THE MOST FOR THE LEASE-TRACKING YOUR REAL ESTATEIf you own rentals and/or investment properties, you know that you have to keep track of your portfolio, maintenance profiles, property managers, and related financial matters. There are a multitude of programs for the Palm-Pilot system to keep up with lease dates, lease expirations, and rent due dates. How To Negotiate A Higher Price For Your House Negotiation is where many FSBO home sellers really have problems. The wrong attitude or a slip of the tongue could cost you thousands. The Real Estate Agent Alphabet Alphabet Letters after a person's name seem to bestow some kind of special prestige. PHD, MD, ESQ are common. Greed Can Cost You Your Shirt! The proper action when things are going well is to pay off debt and consolidate your position. Then you will be financially strong and can go for further expansion without fear of loosing what gains you already have. 10 "No Money Down" Ways to Buy Real Estate Turn the Television on any Sunday morning and you'll find yourself in the middle of a "how to buy real estate" infomercial. Can you really buy a house with no down payment? Can you really make thousands or millions of dollars buying real estate. Where Does Your Real Estate Commission Fee Go - Why is The Commission so HIGH? Many who have bought and sold properties through Realtors numerous times; even many real estate agents themselves, don't know where the commission money goes. After all, when a property sells for hundreds of thousands of dollars and the commission is tens of thousands of dollars, it seems like there is a terrific amount of money charged as commission -- and there is. What Can I Realistically Earn In A Lease Purchase Business? If you're looking at Lease Purchasing as a business, you'll obviously want to earn much more than the $20,000 per year in our "How To Give Yourself A $20,000/Year Raise Without Asking Your Boss" article. Let's review the numbers from that article: For every 100 calls Sue makes on For Sale By Owner property, she either speaks with or leaves messages for about 60%. Before Selling Your Home Here are some important steps you should take before you put your house on the market:1. Home Loan Approval for your next HomeYou don't want to be signing a contract to sell your house before knowing if you are qualified to buy another. Afford A Dream Home In Belize Shopping for property in Belize is not as simple an undertaking as you might initially expect!Firstly, real estate agents as we know them are non existent! Real estate brokers that do exist are likely to be unlicensed, unregulated and certainly not trained or insured.Secondly, the majority (and I mean the majority) of property for sale is not advertised!But with property prices remaining affordable, the quality of property available attractive, the climate beautiful, the people welcoming, the quality of life incredible and the opportunities in Belize plentiful, more and more people need to know HOW they can go about procuring themselves their dream home in Belize. Is Housing and Real Estate Bubble Hype Irrational Exuberance? Not so, says the author of this article and four real estate books including the recent "1001 Tips for Buying and Selling a Home". The upside of the hype is for real estate consumers and investors. Real Estate Investing - The Marvel Of Home Depot And Lowes Repairing a rental home (or your own home) use to require running down to the local hardware store or to the nearby building supply house. After several stops around town, you found everything you needed to solve your maintenance problem. European Second Home Prices Wilt in Drought Spain and Portugal have suffered one of their worst droughts on record this summer, with consequences from empty swimming pools for the tourist to economic disaster for farmers losing their crops and livestock.Roger Munns, Managing Director of Tribune Properties, predicts that property prices in the two European countries could drop as much as fifteen per cent in some areas as more owners decide to put their villas and apartments on the market. How Come No One Told Us About This When We Were Buying a Home? Development, it's bound to happen.Simply because there is a large open field, or the property you're looking at borders woods, doesn't mean it will or can stay that way in the future. Selling Your House Fast! The physical senses of buyers respond to a home's design, and buyer base their purchase decisions on what the see, hear, smell, touch, and even taste. But what do buyers actually want?All buyers what a home that most closely suits their needs and makes them feel a sense of happiness. Wealth Building - An Advantage of Home Ownership As you grow older, the issue of wealth building comes front and center. Wealth building simply refers to increasing the net value of your total assets. Selling Property - Valuing Your Property Selling property privately has many advantages over using an estate agent. However estate agents can provide useful local information not available from the internet. Buying and Selling Distressed Houses for Maximum Profit (Update) If you want to become a real estate investor, find a "fixer-upper" owned by an anxious seller. Finding distressed houses at bargain prices, fixing them up, and then selling them on a consistent basis can make you a multi-millionaire. |
home | site map |
© 2006 TIGER MEDIA |