Free 1031 Exchange Hotline: 877-471-1031

Free Pre-Sale Consultation with Attorney/CPA

Asset Exchange Company offers pre-sale consultations for clients selling investment properties.  The free consultation is conducted by our Attorney/CPA and will help identify potential issues that may result in an unforeseen tax liability.  Some issues to consider before selling:

1. Is the property owned by multiple owners?
2. Is the property held within an LLC, Partnership or Trust? 
3. Did the property have both commercial and residential uses?
   
4. Is seller financing being offered?
5. What effect will Section 1250 recapture have on the tax liability?

A pre-sale consultation with Asset Exchange Company will help identify and address potential issues before they become problematic or slow down the sales cycle.  Call us today at 877-471-1031 for your free consultation.

Trends in the 1031 Exchange World  

Some of the trends in our industry are obvious: we’ve seen a slowdown in the number of properties being exchanged.  But in today’s slow market there are deals being done and we’ve seen some interesting trends: 

Seller Financing – Because bank financing is extremely difficult, many of our clients are offering seller financing.  If a seller carries a note they are still able to conduct a 1031 Exchange.  If the seller chooses not to conduct a 1031 Exchange, taxes are paid over the duration of the note, both on the gain and on any interest earned from the note. 

Move to Residential – We’ve seen an increasing number of clients move from larger commercial properties to single family rental properties.  Many who are making this move are acquiring REO’s or foreclosed properties.  A client recently acquired an REO in Modesto for $35,000.   

Flight to Quality – Many investors are choosing to invest only in “A” locations and “A” properties. 

Reverse Exchange – Many clients are choosing to buy replacement property now and waiting to sell in the spring/summer when, historically, the market is better.  This of course can be a gamble, but many clients are willing to take the risk.  

Increased Level of Sophistication – Deals are more complicated today and as a result very few first time investors are entering the market and most transactions are being done by seasoned investors.

Opportunistic Buying – Warren Buffet advises to “be fearful when others are greedy and greedy when others are fearful”.  Many of our investors are being greedy - asking for significant price reductions, moving quickly and taking advantage of value in the marketplace.

The subject matter in this newsletter is intended as general information only and not intended as tax or legal advice.  Please always consult your tax or legal advisor for any specific tax or legal matters.