A Section 1031 Exchange allows an investor the opportunity to reinvest the funds from an investment property sale into replacement properties without facing immediate capital gains taxes on the appreciated value of the relinquished property.
It pays to plan ahead!
✓ Simultaneous Exchange
✓ Delayed Exchange
✓ Improvement Exchange
✓ Personal Property Exchange
✓ Reverse Exchange
The Importance of Due Diligence
As with any real estate investment, there is risk in §1031 exchanges and Fractional Ownership Real Estate (FORE) investments, such as a tenant-in-common (TIC) or Delaware Statutory Trust (DST). Investors should carefully review offering materials related to any FORE investment as those materials will contain important risk disclosures and specific information about the property.
For when you're ready for institutional real estate investing
Although the “mainstream” securities industry often refers to real estate as an “alternative investment”, this is clearly a subjective term intended to differentiate direct ownership of real estate investments from stocks, bonds, and mutual funds. The truth is that people have owned real estate for thousands of years before stocks were ever sold on Wall Street.
Don't risk losing your tax deferred status
It is often difficult in the short 45-day time frame to locate a replacement property that has the right purchase price, debt ratio, and closing schedule to meet the Section 1031 Exchange requirements, and still have enough time to arrange the necessary financing.
Delaware Statutory Trust (DST)
Umbrella Partnership Real Estate Investment Trust (upREIT)