Wednesday, July 29, 2009

1031 Tax Deferred Exchange Strategies

Ron Ricard of Investment Property Exchange Services, Inc sent the follow article regarding current investors strategies paired with the 1031 exchange:

Investors are Buying

Today's educated investors are repositioning their investments and buying up "deals" during this dip. Purchasing at today's low prices can allow investors to have positive cash flow with single family rentals that, in some markets, are normally purchased primarily for appreciation. Investors are beginning to sell assets like apartment complexes, commercial and industrial properties and using the cash to exchange into multiple single family rental properties that will cash flow immediately. When the real estate market turns positive, these investors will be poised to gain maximum appreciation and will continue to reposition their real estate investments utilizing the benefits of a 1031 Exchange.

Some Creative 1031 Exchange Strategies

1. Sell commercial/industrial/retail properties and buy multiple single family rentals
2. Sell single family rental properties and buy desirable vacation rental properties
Many vacation areas are priced at record lows
3. Sell vacant land and buy single family rentals, vacation rentals or commercial/industrial/retail investment properties
4. Sell investment properties and buy a "dream" property that later can be converted to a principal residence
5. Converting from or to an IRC §1031 "Qualified Use" may offer tremendous favorable results

For your 1031 questions, Ron Ricard can be reached at 408-483-1031 or

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