Article by Luis Roque

Titles:

What is a 1031 Exchange?

What are the Advantages of a 1031 Exchange?

Master Keywords:

Roque Capital Holdings; Metro Capital Management; Real Deal Community; Anaheim, California residential RE Joint Venture; flip properties Anaheim, California; Orlando, Florida residential RE Joint Venture; flip properties Orlando, Florida; commercial real estate buying group; residential RE buying group; Greatest Real Estate Giveaway Ever, HIS Real Estate Network, HIS Real Board of Advisors; Investor Alliance Asset Management Group

Keywords

1031 Exchanges,tax savings,real estate investment strategies,wealth preservation

Teaser:

Want to improve your real estate investment cash flow, increase your investment leverage, while increasing your tax savings? 1031 Exchanges provide excellent diversification for future investment planning.

Body:

A 1031 exchange makes it possible for investors to sell and property of like kind while deferring tax consequences. This transaction is authorized by section 1031 of the IRS code; and offers investors a reliable strategy for the protection of their RE assets. A successful 1031 exchange allows the investor to reinvest 100% of the equity from the sale of a property into the purchase of a preferred replacement property without recognizing any gain. This type of property sale and reinvestment can either be done through a simultaneous or delayed 1031 exchange. In most cases the 1031 exchange is done as three-party delayed exchange also known as a “Starker Exchange” in which an intermediary ensures a reciprocal transfer of the properties and provides a “safe harbor” against the actual receipt of exchange funds. It is extremely important that this process be done correctly, otherwise, a taxable event may occur.

1031 exchanges provide real estate owners with a range of opportunities to meet personal investment objectives including increased leverage, improved cash flow, diversification, reduction of management obligations, geographic relocation and/or consolidation. The tax dollars saved by an exchange may be maximized to increase an investor’s overall net worth. Ultimately, the exchange process allows investors to reorganize and improve their real estate portfolios to best suit their unique interests and needs. Strategic Tax and Wealth Planning can further maximize the value of current and future assets.Wealth preservation is key to maintaining and growing the investor’s overall portfolio; while protecting the assets from unnecessary exposure to tax consequences and litigation. Strong management protocols should be in place prior to selecting any investment strategy. Consult a professional familiar with the use or creation of 1031 Exchanges; to determine the best utilization for the investor’s needs.It can not be over emphasized that a Strategic Planning Review of the investor’s portfolio, tax strategies and exposures; prior to adopting a strategy, be completed in a timely manner to create a successful and profitable outcome. Consider the types of exchanges that can be utilized within the criteria of the 1031 Exchanges. Many options are available to the investor. Knowing what the investor expects as a return on their investments (ROI); creates mutual understanding and a very satisfied, valuable investor.

article by Patrick Moorton

Imagine what would have like to have a company millions of dollars to send a check each month for 25 years. Do not be surprised if companies like Walgreens, CVS, McDonalds, 7-Eleven, Bank of America and JP Morgan Chase sends a check every month?

tenant net leased properties

only national credit tenants have long been a favorite of insurance companies, mutual funds and high net worth individuals. They buy because they have long term leases with little or no management responsibility. Tenants are often billions of public companies and have excellent credit ratings.

Are you starting to see how easy it would have properties for you how are you?

No daily management of a company a billion dollars as a tenant, which is all his own maintenance, taxes and insurance. The property is a vital part of their business operations and are very concerned about their appearance. This is a prime location with demographics that forecast high traffic and sales to tenants.

pay the rent every month like clockwork and consistent cash flow allows owners to build equity constant throughout the lease term. Real estate value and tenant credit first great that you can enjoy very favorable financing conditions. Conservative leverage with a car loan amortization, the property will be paid at the end of the original lease. If the leave, you have a valuable asset that is debt free. If they stay beyond the initial period after the property is paid, and many do, return on investments increased substantially.

It is important to invest in a place that is, or should generate substantial sales for the tenant. If you do a lot of money is unlikely to go after the initial lease term. Net leased property buyer should consider carefully if you want to buy. You may use demographic software and mapping to compare the attributes of several stores to determine the best to invest in the right places with the best tenants are always in demand. Also sold at a premium. Usually worth paying a little more for a location. This allows you to sell the property quickly if you decide to sell before the end of the lease.

The popularity of credit tenant properties net leased to investors has grown because many investors are very small to get their cash deposits. Net leased property, when selected carefully, can be a sound investment, reliable, with little or no management.That for what they have been quietly acquired by institutional investors and high net worth individuals for many years .

Moorton

Patrick is president of Southwest Florida Inc. Realty Advisors NNN1031Exchange.com owns and operates an online resource for investors buying and selling single tenant properties net leased credit tenants in Florida. For more information, visit