1031 Exchange Benefits If you own commercial property, planning ahead to complete a 1031 Exchange at the time of sale can be one of the smartest moves you make. - Capital Gains Tax Deferral - Higher Return On Equity - Property Appreciation - Build & Transfer Wealth To make sure you get the full benefit of a 1031 Exchange, its important to learn all that you canprior to even beginning the sales process on your current property if possible. There are rules and regulations in place that determine which properties we can show you when you first contact us. However, once we get to know each other, you will have full access to future available products.	The Power of Appreciation A compelling reason to own real estate is the power of appreciation. Historically, real estate investments have shown a fairly consistent ability to grow in value over time.* Leverage, when rates and terms are favorable, has the potential to boost returns from appreciation, as leverage may offer the prospect of a higher return using a smaller amount of money to control a larger investment value (i.e. options, purchasing stock on margin, etc.). As a simple illustration, a TIC equity investment of $100,000 in a $1,000,000 real estate investment would buy 10% of the property. With no leverage and 3% appreciation the investment would theoretically be worth an additional $3,000 or total of $103,000 at the end of a 12 month period. That same $100,000 if invested in a $1,000,000 TIC property with 50% leverage would buy a larger (20%) percentage of the property and with 3% annual appreciation would yield a larger $4,500, or total value of $104,500. Additional positives in this example would be that income received from the property would also double, a larger depreciation write off would be possible, and any interest paid would be deductible. Interest rates must also be factored in, since 6% annual interest on a $100,000 note, for instance, would cost $6,000 annually in addition to any required principle payment. As with stocks and other investments, real estate can also decrease in value, and the amount of appreciation, if any, would be affected by market conditions, location, and a host of other factors. Also keep in mind that increased leverage also increases risk of losing one’s investment. Care must be taken regarding the financial viability of the tenant(s), the lease structure(s), loan terms, funding of reserves, and other considerations. *Past performance does not guarantee or indicate the likelihood of future results. Contact us today for more information.
Securities offered through Steven L. Falk & Associates, Inc., Member NASD-SIPC 3245 Elk Clover Street | Las Vegas, Nevada 89135 | 702.240.0174 office This information is neither an offer to sell nor a solicitation of an offer to sell any security and is being supplied for information purposes only. All investments have inherent risks; TIC investments also have risks, including those common in real estate investment. Potential risks relating to each investment property are disclosed in a private placement memorandum available to ACCREDITED INVESTORS ONLY that must be read by the investor prior to making an investment decision. The information provided on this website is not intended as a substitute for qualified legal and/or tax advice. Copyright 1031ExchangeWorks.com All rights reserved.    Web Design A3K Advertising, Inc.  Contact ExchangeWorks Site Map