Section 1031 is an Internal Code provision that defers tax on qualifying exchanges of like-kind real estate. From the time of closing of the relinquished property, the investor has 45 days to identify a potential replacement property and 180 from closing to acquire the replacement property.
Your Estate Attorneys and Estate Planners will be very interested in what I explain below. Please pass this knowledge on to them and I will be happy to set up a meeting to answer any and all questions.
Not many people or professionals are aware of the passive solution to the 1031 Exchange:
The Delaware Statutory Trust (DST).
Basically to qualify you need $1M Net Worth excluding primary residence, $200K Single Income and $300K with spouse. The property sold qualifies to satisfy Net Worth.
This is great for someone who wants to reduce their real estate portfolio and avoid taxes or cannot find an appropriate 1031 replacement property. You will get a check every month. You or your clients may not want to deal with the property management aspect of their real estate anymore.
Also, if there are disputes, there are shares which can be split up amongst members of a family and they can do whatever they want with their shares. I have a situation like that now.
A DST can offer many other benefits;
1. Access to institutional quality real estate.
2. Professional asset and property management.
3. Passive ownership
4. Non-recourse institutional financing
5. Lower minimum investments
6. Portfolio diversification
7. The ability to close quickly.
I can handle both the front and back ends of your real estate transaction. We do business with experienced firms which best match your goals.
Your Estate Attorneys and Estate Planners will be very interested in what I explain below. Please pass this knowledge on to them and I will be happy to set up a meeting to answer any and all questions.
Not many people or professionals are aware of the passive solution to the 1031 Exchange:
The Delaware Statutory Trust (DST).
Basically to qualify you need $1M Net Worth excluding primary residence, $200K Single Income and $300K with spouse. The property sold qualifies to satisfy Net Worth.
This is great for someone who wants to reduce their real estate portfolio and avoid taxes or cannot find an appropriate 1031 replacement property. You will get a check every month. You or your clients may not want to deal with the property management aspect of their real estate anymore.
Also, if there are disputes, there are shares which can be split up amongst members of a family and they can do whatever they want with their shares. I have a situation like that now.
A DST can offer many other benefits;
1. Access to institutional quality real estate.
2. Professional asset and property management.
3. Passive ownership
4. Non-recourse institutional financing
5. Lower minimum investments
6. Portfolio diversification
7. The ability to close quickly.
I can handle both the front and back ends of your real estate transaction. We do business with experienced firms which best match your goals.
RSS Feed
