Over the past few months, I’ve seen emails from investor representatives urgently seeking a replacement property to complete their client’s 1031 Exchange….
“We are currently seeking well located Southern California Apartments for a trusted 1031Exchange client. The buyer is willing to pay an above market price and will have approximately $2M+ for a Down Payment + additional funds….”
My question is…WHY? Why would anyone overpay and be pressured to settle for a replacement property when they don’t have to?
If you qualify for a 1031 Exchange, chances are…You’re a great candidate for a much better alternative.
I’m speaking of the IRS program that allows you to sell today, receive a lump sum, and defer the capital gains taxes for 30 years. This approach is more flexible and much better than a 1031 exchange. It allows you to use your proceeds how, when, and where you’d like to reinvest – even non-real estate investments. You’re back in control.
The market is at an all-time high and most analysts predict a correction coming soon. Why not be ready with cash in hand to buy when prices come down? Or, work with the numerous owners who would sell now at a discount if a buyer comes with cash? If the sale of your capital asset will expose $1MM+ in capital gains taxes, we should talk.
Please feel free to call our offices directly at 800-420-3182 or email Pete@MPiCRE.com