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1031 Exchange Explained

Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of income real estate is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a real estate investors trades one or more relinquished income real estate for one or more replacement income real estate of like-kind. Such an exchange allows the issuer to defer the payment of federal income taxes and some state taxes on the transaction.

The theory behind internal revenue code is to allow the real estate investors to reinvest the sale proceeds into another income real estate, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling income real estate, we can assist in matching you with a qualified 1031 expert. A 1031 expert can help you explore your 1031 exchange options. Contact us today for a free consultation.

Benefits of a 1031 Exchange

Benefits to a 1031 exchange include:

1031 Exchange Benefits
  • Deferred capital gains taxes

    1031 Exchange Benefits
  • The potential to yield more cash flow on an annual basis

    1031 Exchange Benefits
  • More money to reinvest in a newer income real estate due to zero capital gains taxes calculated on the old income real estate

  • Consolidate your investment portfolio by electing a tenant in common exchange

    1031 Exchange Benefits
  • Achieve your investment goals

    1031 Exchange Real Estate

    In general, the tenant in common opportunities we offer are institutional grade income real estate. Such income real estate often have tenants subject to long term leases with major credit tenants.

    Income Real Estate are in various locations throughout the U. S. and include office, retail, industrial and multi-family income real estate types.

    The demand for high quality tenant in common income real estate is so strong that the offering period is often quite short. If you have any questions regarding your particular needs and circumstances, contact us.

    Tenant In Common Triple Net Lease

    A more popular alternative to sole triple net lease ownership is an investment in a single triple net lease commercial income real estate by multiple real estate investors as individual real estate investors. This type of ownership is otherwise known as a tenant in common ownership.

    Triple Net Lease-tenant in common income real estate can be either single tenant triple net lease or multi-tenant triple net lease income real estate, and are commonly converted into such through a master lease. This type of lease is structured in such a way that they lease the income real estate back from the real estate investor on a triple net lease basis.



    Tenant In Common-triple net lease advantages include:

    1. Freedom from the hassles of day-to-day management

    2. Readily available income real estate

    3. The opportunity to invest in higher-quality institutional income real estate

    4. Assistance with the entire exchange process

    5. Flexible investment sizes based on income real estate type and location

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