Real Estate Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance 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:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Variety

Berlin 2018 Review: The Real Estate – Variety
Variety
A hardened expat returns to Sweden upon inheriting a run-down apartment building in this deeply unpleasant patience-tester.
'The Real Estate' Review | Berlin 2018 | Hollywood ReporterHollywood Reporter
'The Real Estate': Berlin Review | Reviews | ScreenScreen International

all 3 news articles »


Buffalo News

Erie County Real Estate Transactions
Buffalo News
Following are real estate transactions over $5,000 as listed in records of the Erie County clerk's office for the week ending Jan. 12, 2018. ALDEN • 460 Woodside Court, Amanda S. Gerhardt; Michael J. Gerhardt to Joelle M. Sledz; Justin J. Sledz, $259 ...



Forbes

4 Types Of Content Real Estate Marketers Need To Be Using
Forbes
The real estate world has changed drastically over the last few decades. While the industry has evolved more slowly than many other sectors, this makes it the perfect industry for innovative thinkers. With the growth of digital media and technology ...



Helena Independent Record

Real Estate Corner: What is a Realtor?
Helena Independent Record
I was recently asked to explain the difference between a real estate agent and a Realtor. That individual had just learned there was a distinct difference. In Montana, a real estate agent is someone who has successfully completed 60 hours of pre ...
Montgomery County real estate briefs: Week of Feb. 18Montgomery Newspapers

all 2 news articles »


Wicked Local

INTERACTIVE: Top 5 residential real estate sales in MetroWest
Wicked Local
Here is a look at the top five residential real estate transactions this week in the MetroWest region as well as a listing of all of the transactions published so far this year. #1 $7,500,000. 80 Highland St., Weston. BUYER: Mark Notkin. SELLER: Leon ...

and more »


Two Charged in National Real Estate Scam
Santa Barbara Edhat
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced [in December] , a grand jury in East St. Louis, IL, returned an indictment charging two California residents for their participation in a nationwide telemarketing ...



Pensions & Investments

Hines backs effort to increase female leaders in real estate
Pensions & Investments
Real estate money manager Hines is giving a total of $90,000 over three years to the Urban Land Institute and ULI's Women's Leadership Initiative to help increase the number of female leaders in the real estate industry. The money will be used to help ...



Forbes

Must-Know Social Media Strategies For Real Estate Agents In 2018
Forbes
Without tools, human would have ended up in the same graveyard as dinosaurs. Instead, we put footprints on the moon. And I have to hand it to real estate agents — they've been pretty good at utilizing a variety of tools. I know they've broken in their ...



The Providence Journal

RI Real Estate Notes: Waterfront house sells for $4M in Little Compton
The Providence Journal
A waterfront home on three parcels at 40, 43 and 46 Taylors Lane in Little Compton was sold Feb. 9 for $4.090 million, according to Mott & Chace Sotheby's International Realty. The sellers were represented by Ted Marvell of Mott & Chace and the buyers ...



nwitimes.com

Hammond OK's real estate development agreement for Oxbow Landing's last parcel
nwitimes.com
HAMMOND — Development of the last 4.4-acre parcel at Oxbow Landing jumped the final hurdle at Monday's city council meeting. Council members unanimously approved the development agreement with ATG Real Estate Development LLC that calls for the company ...


Google News

home | site map
© 2006 TIGER MEDIA