1031 Exchange

Section 1031 of the Internal Revenue Code, provides a simple, strategic method for deferring capital gain or recapture tax from the sale of real property. During the process of a 1031 Exchange, the property owner will distribute property that is meant for investment or productive use in trade or business. Once the property sells, the property owner uses the proceeds to acquire replacement property of equal or great value. The 1031 Exchange process is straightforward; followin

In this article, we discuss key points of a 1031 Exchange and buying a triple net retail property. Plan in Advance Planning in advance is a crucial element of a successful 1031 exchange. Once the property is sold the 45-day ID period begins and typically the family decides to take a vacation to celebrate. The issue is that the seller only has a few weeks to identify which property they would like to purchase in the exchange and after the vacation, no properties have been ide

People are often intrigued by hearing about STNL NNN but what does it mean? What kind of returns can you get? What is an active versus passive investment? Active investments tend to be real estate asset classes where you have to work and deal with headaches for yield. Those properties take up so much of your precious time and life force where you are dealing with constant problems instead of creating amazing life experiences and memories for yourself and your family. Exampl

Owning a STNL NNN property can often times be very rewarding and require little effort. The misinformation is that there is nothing to do with research when buying a NNN STNL property. There is a lot of review and steps that go into buying a good STNL NNN property. Notice I said a good property. There are tons of mediocre to bad properties out there where a buyer could lose some or all of their down payment investment. Those are easy to buy and hard to get out of. Developers

The 1031 Exchange can be one of the most important tools in an investor’s investing career. One of the main benefits is to defer taxable gains. When you own a property over time you can typically take a certain amount of depreciation on the property depending on the asset type. Different asset types have different depreciation schedules. There is also bonus depreciation available currently (tax laws are ever changing so consult your CPA for the latest information). To maximi

With STNL (single tenant net leased) properties there is often a misconception that these are easy to buy and you can’t go wrong purchasing a single tenant NNN property. Nothing could be further from the truth. Both as an investor myself and a principal broker I usually review over 1,000 single and multi-tenant NNN properties a week. What I have found over decades of time active in the space is there can be a lot of lemons. Here are some Key negative items to watch out for. O

Potential clients often ask me, “What is the interest rate on a commercial real estate loan?” The short answer would be, “It depends." I do not actually answer the question in that manner but instead start the conversation by asking the client several questions about their situation and the specific type of property they are considering. Before I can provide guidance to the client on loan terms, I need to gather information. Commercial banks, credit unions, life insurance com

The 1031 exchange, also known as a like-kind exchange or tax-deferred exchange, is a strategic tax planning tool that allows individuals and businesses to defer capital gains taxes on the sale of certain assets, such as personal property or business real estate. This powerful mechanism is popular for its potential to help investors preserve capital and facilitate the growth of their portfolios. Regarding how the 1031 exchange works, particularly when using the proceeds from t