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.	Higher Return on Equity Many people find themselves in an interesting situation. While their property may have experienced significant appreciation, rents may not have kept up with property values, and/or expenses may be eating away at their profits. Heres a hypothetical example of how that might pencil out annually on $200,000 equity in a highly appreciated rental property with a mortgage balance of $50,000. Rental Income Mortgage and taxes Maintenance & repairs Insurance Miscellaneous Total Expenses Net Cash Flow Return on Equity Net Monthly Income $15,000 ($4,750) ($2,000) ($500) ($500) ($7,750) $7,250 3.6% $604 If this property were sold and exchanged for a property returning even a 6.5% annual net return on equity, that would translate to monthly income of $1,083, which is an 80% increase in revenue. A replacement property with increased leverage would also result in greater sheltering of the increased income. Many of our clients who participate in levered TIC properties have reported tax-sheltering ranging between 25% and 75% of their monthly cash flow. If you would like to explore this further, give us a call.
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