OPTIONS & IDEAS
Make 1031 work for you
1031 Exchanges have a lot more to offer than just wealth-building. Depending on your objective, there are a lot of different ways you can make a 1031 exchange work for you.
Sure, an objective can be to “make more money”, but it can also be “to have safe, stable investment income that doesn’t require management,” or “to have a property in a beautiful destination that you can use personally from time to time.”
These are all thoughts that should factor into your investment decision. If you’d like to discuss your ideas with a SellTaxFree.com™ 1031 Specialist, feel free to schedule a consultation at your convenience. For now, let’s take a closer look at some of your options:
The Vacation Home ExchangeTM
Great Returns, An Appreciating Property and a Place to visit!
Ah, paradise...Sandy beaches, mystic mountains, desert vistas... Wherever your paradise is, why not buy a vacation home there using the proceeds from your 1031 exchange? With the advent of Airbnb™, Vacasa™ and the short term rental industry at large, owning property in vacation destinations is turning out to be a viable investment strategy. Plus, with the 1031 Exchange rules allowing owners to use the property part of the year, exchangers can have a cash-flowing, appreciating investment, AND a place to vacation once in a while - Now that’s a good deal!
The Management-Free /
Passive Dependable Income
Tired of the Three T’s (tenants, toilets, and trash)? We hear it all the time, and luckily there are lots of 1031-reinvestment options that do NOT require management! An investment called a Triple Net Lease allows you to be the sole-owner of a single-tenant building that’s rented to a Fortune 500 company, like Starbucks, or Dollar General (for example). These companies (your tenants) are responsible for the repairs, insurance and property tax payments, and will sometimes even offer rent guarantees for up to 15 years! The second investment type is called a Delaware Statutory Trust which allows you to own a fractional interest in large commercial properties that are managed by a “Sponsor” who takes care of everything, and simply sends you a check every month.
Start enjoying the income from the real estate assets you’ve built up without the headaches of management, today!
The Make More Money ExchangeTM
Diversify and move up!
Got a lot of equity? Sometimes, when a property has gone up considerably in value and a lot of equity has been built up, that equity is not generating as much monthly income as it could be if it were invested somewhere else. By using a 1031 Exchange, you can sell your property, and reinvest into new properties that offer more monthly cash-flow, like Turn-Key single-family rentals, short-term / vacation rentals, or commercial investments!
The Move-In ExchangeTM
Buy something initially for investment, and move in after a few years, tax-free!
Did you know you can move into your investment property after a few years without triggering a tax-bill? While you must purchase your property solely for investment purposes, knowing your options for the future use of the property is always best, and can give you a great opportunity to use an investment property you own in a location where you’d want to live! This is subject to specific IRS rules and requirements and needs to be reviewed before you make any purchases.
The "I Need Cash" ExchangeTM
Get the cash you need without triggering a tax-bill!
Need cash from your sale? If you take money at closing (referred to as “Cash Boot”), you’ll pay capital gains taxes on it….
However, if you reinvest it into new property, and pull it out using a Cash-Out Refinance Loan, or Line of Credit instead, you can avoid triggering those capital gains taxes, and still have access to your cash! Why pay the taxes if you can get your cash tax-free?
More ways to make 1031 work for you
Improvement Exchanges, Reverse Exchange, and more!
You can always find your own investment property to purchase in your 1031 Exchange
Make Improvements to your replacement property with your 1031 Exchange proceeds in an “Improvement Exchange”
Buy your replacement property first, and sell your existing property second, in a Reverse Exchange!