What Is A "Drop & Swap" Exchange?
Wednesday, May 04
Often times, real property held by a partnership or limited liability company is subject to a sale but there is disagreement among the partners as to how to handle the sale proceeds. Some investors want to conduct a 1031 exchange while others simply want to sell for cash. To satisfy these competi...
Recaptured Depreciation In A 1031 Exchange
Tuesday, May 03
Investor interest in 1031 exchanges has never been higher, and with good reason. This piece of IRS tax code allows you to change the form of your investment without triggering any immediate tax consequences if you properly structure your exchange. This allows a savvy investor to grow his or her p...
How To Select A Competent Qualified Intermediary - Part 2
Friday, April 29
Previously, we shared with you some background on what a Qualified Intermediary does and the regulations (or lack of) surrounding this important role in the 1031 exchange process. Now that you understand the true scope of this role, it is time to identify the key questions to ask as you perform d...
How To Select A Competent Qualified Intermediary - Part 1
Thursday, April 28
When you are executing a 1031 exchange, you will usually require the services of a qualified intermediary (QI). Also known as an exchange accommodator or 1031 exchange facilitator, the role is the same – it is the neutral, disinterested third-party who will: Prepare the exchange legal agreements ...
Restrictions On Delaware Statutory Trusts
Monday, April 25
Although Delaware Statutory Trusts (DSTs) are a powerful way for investors to capitalize on securitized real estate, DSTs are not without limitations. IRS Revenue Ruling 2004-86 imposed some prohibitions on the power of the DST trustee. These prohibitions must be followed in order for the investo...
Financing Basics Of A Delaware Statutory Trust
Monday, April 25
With the advent of the Delaware Statutory Trust (DST), access to and participation in securitized real estate has been greatly simplified for many investors. In a DST, the trust owns 100% of the fee interest in the real estate and is the sole borrower. This usually results in very competitive int...