1031 Exchanges Alameda CA

This article discusses the benefits of 1031 exchanges and explains how they can be used to better leverage real estate in an investor's portfolio.

Local Companies

Brokers USA Commercial Real Estate
(415) 225-9894
351 King Street
San Francisco, CA
Aminoff & Co
(310) 201-9600
1800 Avenue of the Stars
Los Angeles, CA
Vision Management Services
(714) 919-2600
3200 Park Center Dr
Costa Mesa, CA
Family Investors
(209) 358-3744
7196 Gertrude Ave
Winton, CA
Titan Real Estate Investments
(925) 552-7375
32 Kensington Ct
Alamo, CA
Summit Investments Alarm
(559) 291-3823
Fresno, CA
Yh 1 Llc
(650) 299-9041
65 Selby Ln
Menlo Park, CA
Carlton Properties
(310) 201-9600
1800 Avenue of the Stars
Los Angeles, CA
The Label Co Inc
(818) 841-2400
Burbank, CA
First Capitalcorp
(310) 273-8200
280 S Beverly Dr Ste 204
Beverly Hills, CA

1031 Exchanges

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1031 exchanges remain one of the most powerful investment tools, yet they are also one of the most misunderstood and under-used. 1031s were created by the government to help investors increase their returns through continual investing. Investors need to understand how to leverage their portfolio using 1031 exchanges to best maximize future growth.
To put it in perspective, one can imagine 1031s as free capital with:

  • 0% interest: The investor pays no interest on the money the government gives them.
  • High LTV: The capital can be leveraged at the investor’s highest LTV capability. 
  • No Due Date: Investor keeps the money as long as it is invested in real estate. 
  • 85% Free Profits: The investor keeps 85% of what the government's (leveraged) money makes them—these are free profits from an outside money source.
  • Potential Non Re-Payment: With proper long-term investment practices and proper financial planning, the investor may be able to avoid fully paying back the government’s money (this may also include not having to pay back any depreciation recapture).

Tax free compounding growth through 1031 exchangesCommon misconceptions

The most common misconception with 1031 Exchanges is that they save you money. The thought process goes something like this: “If I do a 1031, I don’t have to pay the government their taxes this year; thus I saved a little bit of money.” However, there are two major problems with this line of thinking. First, 1031s by design only defer an investor’s tax obligation, thus the investor still owes the money and has not saved a penny. Second, this thought process requires the investor to look backwards at the property sold as a profit source—not forward at the properties to be purchased—and looking backwards inevitably decreases potential returns.

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NuWire Investor is an online publication that offers quality information about alternative investments such as real estate, commodities and franchises.

Author: Ken Zimmerman
Copyright © NuWire Investor and NuWire, Inc 2007. All rights reserved. NuWire Investor material may not be copied, reproduced, redistributed, published or modified without the prior express written consent of NuWire, Inc.

Featured Local Company

Brokers USA Commercial Real Estate

4152259894
351 King Street
San Francisco, CA
http://www.gregorygarver.com

Related Articles
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Courts that have analyzed 1031 exchange eligibility of a property have generally concluded that the requirements are met if the property is held “primarily for investment.” In other words, if there is objective evidence that the taxpayer’s primary motive is to hold the property for investment, then limited use of the property by the taxpayer for personal enjoyment will not destroy the investment character of the property.
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Related Articles
- 1031 Exchange Eligibility Alameda CA
Courts that have analyzed 1031 exchange eligibility of a property have generally concluded that the requirements are met if the property is held “primarily for investment.” In other words, if there is objective evidence that the taxpayer’s primary motive is to hold the property for investment, then limited use of the property by the taxpayer for personal enjoyment will not destroy the investment character of the property.
- Subdividing Property For Profit Alameda CA
- Real Estate Investing: Real Estate - The Hidden Investment Alameda CA
- Real Estate Problems Alameda CA
- 1031 Real Estate Exchange Alameda CA
- Capital Requirements for Real Estate Alameda CA
- Real Estate Investor Tax Mistakes Alameda CA
- Real Estate Market Q&A Part 3 Alameda CA
- Real Estate Q and A Part 3 Alameda CA
- Real Estate Q&A Part 5 Alameda CA
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