Understanding 1031 Exchange Properties For Sale

1031 Exchange Properties For Sale1031 exchange properties for sale have many benefits. They don’t only help you to depreciate to save on tax, but also allow you to defer taxes on any gain. In order to avoid big tax receipts, you must follow the rules and regulations of 1031 exchange properties for sale.

1: Simultaneous Exchange

The investor can relinquish and close on an alternative property on the very day. 1031 exchange properties for sales, in other words, create room for exchange between two parties. At present, however, this sort of transaction is rare.

2: Delayed Exchange

This is another kind of 1031 property exchange. Simply, the investor can sell his or her investment property in the first place and, then, look for a replacement within a fixed window.

3: Reverse Exchange

The whole process is quite simple: “buy first and pay later”. In most of the cases this is a total cash payment, so most banks would not be interested in lending. And, the impossibility of your being on title to the both relinquished and replacement property simultaneously makes it harder.

There is however a solution. You can set up an LLC to take over the title to the replacement real estate. Once you have sold the original property, transfer the title into your name.

4: Improvement/Construction Exchange

Many investors sell their property only to find out that the cost of relinquishing is higher than what they intend to buy. Paying taxes by any mean is not feasible. However, there is always an option for an improvement or construction exchange. This kind of exchange helps you invest the rest of the money on the real estate you are willing to buy.

With proper diligence and planning 1031 exchange properties for sale could be rewarding. In the long run they would turn out to be some invaluable assets to foment your financial standing and stability.

About the Author

Dwaine L. Clarke is the Founder and President of GCT Net Lease. GCT Net Lease is an investment real estate services firm exclusively focusing on Single and Mult-Tenant Net Lease Properties. The firm provides a full range of brokerage and advisory services nationwide to High Net worth Investors, Developers, REITs and Institutional Investment Funds. GCT Net Lease is headquartered in Windsor Connecticut. Dwaine is also a nationally recognized speaker and consultant. He is also the author of three best selling commercial real estate investing books. Mr. Clarke’s experience branches through close to over a decade of working with and for some of the nation’s top investors to purchase, underwrite, develop and manage millions of dollars in commercial investment real estate. For his case, he has not only assisted these investors, but also became a student of theirs. Through careful analysis he started to understand what these investment experts were doing, using top strategies to buy, manage and sell their investment properties for maximum profit. He especially took note of how these investors were leveraging their time and how they made their decisions without interfering with their personal or business lives. Mr. Clarke is also active in investing and creating real estate partnerships, providing a vehicle for high net-worth individuals to own income producing real estate.

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