1031 Exchanges Dallas TX

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

Hillwood Investment Properties
(972) 201-2800
5430 LBJ Freeway, Ste. 800
Dallas,, TX
E & E Investment Group
214-295-6722
E & E Investment Group
Garland, TX
Mgs Group Investments Lp
(214) 371-7011
3311 S Vernon Ave
Dallas, TX
Portfolios Inc
(214) 720-9101
750 N Saint Paul St Ste 1300
Dallas, TX
Vision Wealth Management Inc
(972) 490-8950
6029 Belt Line Rd Ste 110
Dallas, TX
Gryphon Management Partners
(214) 979-0909
100 Crescent Ct
Dallas, TX
Brazos Capital Management
(214) 706-5100
5949 Sherry Ln Ste 1600
Dallas, TX
Marketing Services
(972) 239-4477
13740 Midway Rd Ste 520
Dallas, TX
Good Worth Capital Management
(214) 459-1205
3625 N Hall St
Dallas, TX
Eikenburg Frank C
(214) 373-3773
7417 Meadow Rd
Dallas, TX

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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

Hillwood Investment Properties

9722012800
5430 LBJ Freeway, Ste. 800
Dallas,, TX

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