What to do if you can’t find a replacement property for your 1031?
In today’s market most investors are facing two problems: 1) They want to sell but can’t because they don’t want to buy something else at the current prices or 2) They sold and are now up against the clock to find that replacement property that makes sense. If you have been reading our articles, you have hopefully seen that there is a better way.
Most real estate agents are only interested in solving your problems if they can make money. So if there is a solution for you that takes that opportunity away from them, they probably aren’t going to tell you about it. You have worked hard for what you have and shouldn’t be limited by someone just because they want to make money off of you. At VFG we value educating our clients on all the options and opportunities available, so that they can make the right decision and not be subject to time limits or lack of resources.
In our last article we spoke about IRS code 453. Which allows you to defer your taxes for up to 30 years. That means you have 30 years to use, grow and earn from funds that you would have had to send to uncle Sam. If you didn’t read that article, I highly recommend you go back and take a look. If you read it, but have questions or would like to learn more. Please feel free to reach out to us.
I am going to briefly touch on another option for your 1031 exchange. If you are selling a property, most tend to roll into another property. But what if instead you moved the funds into ten different properties or ideas? This is yet another way to get out of the exchange and defer until you drop mentality. Each of these properties now have a lower price point, allowing you to either refinance and take the funds out tax free or to sell off one by one and have a much smaller tax burden. By the way, our clients also learn about ways they can reduce or even eliminate a tax bill on those properties.
INDIVIDUALLY STRUCTURED 1031 EXCHANGES TAILORED TO YOU
OVERVIEW: Take advantage of favorable conditions to acquire select value-add and opportunistic income-producing Single-Family Rental (SFR) Homes, with the goal of increasing long-term values and current cash flow.
BENEFITS:
– Defer up to 100% Of Your Capital Gains Taxes
– Ability to Diversify Your 1031 Exchange Equity
– Professional Property Management
– SFR Asset Class, largest in the world
– Multiple Exit Opportunities
Most of our 1031 clients have come to us because of the same concern. The have all this money available to them in their properties but they can’t access it without taking a huge tax hit, even if they successfully execute a 1031 exchange. They now just have a bigger property that still has all of their money tied up. If this is how you are feeling? All it takes is one simple phone call to have your eyes opened to all the possibilities out there.
If you are interested in learning more about these and many other strategies, please reach out to Patrick Morehead at Vanclef Financial Group for more information: (310) 410-8341 or [email protected].
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