IRC Section 1031 is undeniably one of the most generous sections of the tax code; however, the IRS rules and timing requirements to complete a tax deferred 1031 Exchange are stringent. Navigating the 1031 process can be complex and a misstep can result in either a failed Exchange or the purchase of replacement property that is not suitable. Experienced real estate investors will tell you that having the right team in place and working with a licensed 1031 Exchange Advisor will help ensure your Exchange is successful and meets your objectives.
Think of a 1031 Exchange Advisor as the team captain—and every team needs a good captain. A quality 1031 Exchange Advisor is licensed through FINRA and is highly experienced with an in-depth knowledge of the Exchange process, tax code, 1031 Exchange strategies, and replacement property options best suited to address your objectives.
As the team leader, your 1031 Advisor will consult with you to understand your objectives, develop your Exchange strategy, help you select and acquire replacement property, and guide you through critical steps of the 1031 Exchange process to ensure IRS rules are adhered to at every point. Below are some benefits of working with a licensed Exchange Advisor.
A good 1031 Exchange advisor should not only help you find, select, and acquire qualified replacement property but should also serve as a strategic partner and assist in navigating the exchange rules, debt matching considerations, and property co-ownership issues. There are quite a few 1031 Exchange firms to choose from; however, like any industry, the level of expertise, years of experience, client focus, due diligence, and services offered vary greatly from company to company. Therefore, when selecting a 1031 Exchange firm to work with, you should only consider well-respected firms that can demonstrate the following criteria:
If you are considering a 1031 Exchange and have more questions about building your 1031 Exchange team, contact Real Estate Transition Solutions at 206-686-2211, or email info@re-transition.com
Find Out if a 1031 Exchange is Right for You.
If you are considering selling your investment property and would like to find out if a tax-deferred 1031 Exchange is right for you, contact us to schedule a complimentary consultation to discuss your investment property, objectives, potential tax liability, and tax-deferral options.
Our free consultations can be done over the phone, via web meeting, or in person at our office in Seattle, Washington, or in Portland, Oregon. To schedule your free consultation, call 206-686-2211, or click on the “Schedule Call” button below.
The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the sponsors Private Placement Memorandum (PPM) which is solely available to accredited investors and accredited entities. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million dollars exclusive of primary residence) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity please verify with your CPA and Attorney. There are risks associated with investing in real estate and Delaware Statutory Trust (DST) properties including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies and illiquidity. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Diversification does not guarantee profits or guarantee protection against losses. Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation. Securities offered through Aurora Securities, Inc. (ASI), Member: FINRA/SIPC. Advisory services offered through Secure Asset Management, LLC (SAM), a Registered Investment Advisor. ASI and SAM are affiliated companies. Real Estate Transition Solutions (RETS) is independent of ASI and SAM.
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