1031 Exchanges Atlanta GA

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

J & J Property Solutions, Inc.
404 754-1694
3535 Peachtree Road, NE
Atlanta, GA
Compass Capital Management Inc
(770) 352-2200
2 Ravinia Dr
Atlanta, GA
Sterne Agee Leach
(404) 365-9630
950 E Paces Ferry Rd NE
Atlanta, GA
Huber Jack Invstmnts
(404) 237-2299
4060 Peachtree Rd NE
Atlanta, GA
Mirage Resorts
(404) 364-2800
3060 Peachtree Rd NW
Atlanta, GA
French Wolf & Farr
(404) 604-3400
3445 Peachtree Rd NE Ste 575
Atlanta, GA
Rowland Mark
(404) 816-5350
3353 Peachtree Rd NE
Atlanta, GA
Montag & Caldwell
(404) 836-7100
3455 Peachtree Rd NE
Atlanta, GA
Franklin Templeton Institutional
(404) 814-0006
135 Lakeview Ave NE
Atlanta, GA
Wachovia Investments
(404) 851-2992
Atlanta, GA

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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

J & J Property Solutions, Inc.

404 754-1694
3535 Peachtree Road, NE
Atlanta, GA

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