Why 1031 property exchange listings are important in 1031 exchange. Here in this blog, you will get a brief introduction to the importance of 1031 property exchange.
In addition to tax deferral, an essential component of a 1031 exchange is to identify and buy suitable replacement properties. The properties that qualify for a 1031 exchange include apartments, office, retail, self-storage, land, hotels, residential rentals, senior care facilities, restaurants, medical, industrial, daycare, educational, and other business and investment properties. For example, the investor can sell land and acquire an office building, sell fourplexes and buy land for the development, or sell a warehouse and buy single-tenant retail property; all of these are considered “like-kind” 1031 exchange property.
1031 Exchange Property Lists
Multiple exchangers sell management-intensive properties in search of secure regular income without the burden of maintenance, everyday responsibilities, tenant turnover, or maintenance. There are three ways to invest the 1031 exchange proceeds in attaining passivity in real estate ownership:
- Properties with a Net Lease (NNN).
- Properties in a Delaware Statutory Trust (DST).
- Tenants-in-Common (TIC) properties
1031 Exchange Place has been serving exchangers since 1997 who are looking for passive income and has access to what we can confidently say is the more comprehensive selection of 1031 exchange properties.
NNN Properties
A “triple-net” or “NNN “lease moves the burden of operating expenses from the landlord to the tenant. Under this, the tenant is responsible for paying property tax, insurance, maintenance, utilities, repairs and upkeep. Lease lengths are between 5-20 years. All these variants have made NNN property a primary choice for investors looking for passive income.
DST Properties
In a DST, exchangers acquire beneficial proprietorship interest in a trust, which owns the properties in the trust. You own the trust, and the trust owns the real estate. DSTs are the height of passivity. Owners of DSTs have no responsibilities. For exchangers that choose to invest their 1031 sale proceeds into a DST, the process is incredibly easy.
TIC Properties
TIC properties enable 1031 exchangers to take an interest in properties available only to institutional buyers. Contact us today to explore the broadest choice of TIC properties currently available for sale.
After the financial crisis of 2007-2008, the number of exchanges decreased, and most TIC sponsors either left out the business or turned their attention somewhere else. With the resurgence of 1031 exchanges in years, the need for diversification, security, and passive income has inspired real estate companies to offer replacement property to 1031 exchanges. Instead of using the pre-crash TIC form of proprietorship, sponsors have chosen the DST (Delaware Statutory Trust) structure, which provides the same advantages to TICs.
DST replacement property has multiple advantages for consideration; however, DSTs are only available to accredited investors. Therefore, 1031 property Advisors provides 1031 investors who won’t satisfy the accredited investor standard, yet seek secure monthly income without the ongoing management hassle or cost, access to properties from the handful of active TIC sponsors.
Leave a Reply