In simple terms, this process, executed with the help of a mediator, allows you to avoid paying capital gains tax (for now) when you sell a commercial property.  The catch?  You have to put your profits into the purchase of another (bigger) property within a certain period of time.

Want more details?  Read on!

How Can A 1031 Tax Deferred Exchange Work For You?

A tax deferred exchange is a simple method that a property owner employs in a property trade without having to pay the federal tax on the transaction. Generally in an ordinary sale transaction, the property owner is taxed on any gain he or she realizes by the sale of the property. But in exchange, this tax is deferred until some future time when the acquired property is sold. Authorized by the Section 1031 of the Internal Revenue Code, these tax rules are sometimes referred to as 1031 exchange rules. The transaction however must carefully meet the section 1031 rule set and must be structured in such a way that the transaction is in fact an exchange of one property for another and it is not a taxable property sale.

When you look at it, the tax deferred exchange is actually an investment strategy that people are often not aware of. One of the misconceptions on the 1031 exchange rules is that an exchange requires 2 parties who want each other’s properties. However, in reality though, such two-party swaps rarely occur. Today, this exchange can be accomplished by involving four principal parties that include the exchanger, the seller of the replacement property, the buyer of the relinquished property and an intermediary. These parties often do not even know each other and may be located in different states. Furthermore, the exchange properties do not have to close at the same time. As long as the 180-day deadline has not been met, the exchange is considered legal and thus tax-free.

You Need To Know And Understand The 1031 Tax Deferred Exchange Rules Before You Sell Your First Property

It is clear that 1031 exchange rules have the advantage of shielding the exchanger from incurring immediate tax liability. Upon the death of the taxpayer, the deferred tax is forgiven and the taxpayer’s estate never has to repay the ‘loan’. A tax deferred exchange nevertheless carries the disadvantage of additional fees for entering into the agreement. These costs could be attorney’s fees, accounting fees, intermediary and accommodation titleholder’s fees. The taxpayer is also not allowed to use the net proceeds from the property disposition other than in real property re-investment.

1031 exchange rules offer a taxpayer the benefits of tax deferment. However, this should not be the only reason to enter into a deferred exchange. Business decisions like the need to consolidate investments, increase cash flow, relocate a business investment, obtain greater real property appreciation and eliminate management problems should play the dominant role. When all of the above factors are considered, one may be in a better position to engage or disengage from a tax deferred exchange.

For More Information

If you need more information on 1031 Tax Exchangers, drop us a line and we will let you know who we recommend.  We can also help put you in touch with an agent if you are looking to sell or buy a property.

Just let us know how we can help – and best of luck with your first 1031 exchange!

To Stop Foreclosure in nearly any city in the United States of America, there are basically only a few legitimate options. Some of these you’ll know, and some will be brand new to you.

Here are a few directions you can take:

• Sell your house prior to the foreclosure auction. The value of this idea will vary heavily depending on the nature and quality of your local real estate market. If you’re in a market that still has very slow resale rates, selling your home could be a challenge. Ask a local real estate agent to determine the average number of days on the market for properties in your area.
• Initiate a loan modification. A loan modification is a process through which your lender changes the payment terms of your loan to more closely match your ability to pay. While this is not a guarantee, loan modifications have become more popular in the last 12 months.
• Refinance the property. If you are not yet fully into the foreclosure process but have reason to expect you will fall behind on your payments, it may be wise to try to refinance your mortgage to a lower rate. If your property is worth less than the balance of the mortgage, you’ll want to inquire regarding a “short refinance”, which is when a lender forgives a portion of the debt against you in order for you to refinance your property and pay off the remainder of the debt you owe.

When you’re trying to stop a foreclosure, the key is fast action.

Warning: Be very wary of people who aggressively attempt to purchase your home for investment purposes. While there are many legitimate real estate investors, there has been a significant amount of fraud with “Stop Foreclosure” scams, and it is wise to be very, very careful.

Please remember: The crisis you now face will soon be over. As a foreclosure survivor myself, I’d like to encourage you to remain hopeful, and to understand that your future does not equal your past!

Thanks for reading this information about how to stop foreclosure. I hope you’ve found value here.

When someone has lived in a council home for a minimum of two years they may have an opportunity to purchase the home for a discounted price. The longer the person has lived in the home the larger the discount they can qualify for.

An individual who is looking for right to buy mortgages for the council home they have lived in should be aware of two key phrases that will follow them through the process of obtaining the loan; open market value and right to buy price. If you know these phrases, terminology then you will understand when approaching lenders.

There are a number of mortgage lenders who will offer right to buy mortgages, the offers range from 50% mortgages to 100% mortgages. A house with a value of 100,000 or more and a right to buy price of 75,000.00 can get a loan for up to 75,000.

Shop around as different lenders will offer maybe less or more than your original request.

It is advisable to find out more about right to buy mortgage options. There is so much information on the web today regarding the diffeent loans available reanging from mortgages loans to no fax payday loans (No teletrack payday loans).

Make sure you search around the web or talk to professional before deciding to buy the property, it is always best to get the facts and carry out research before deciding.

If you are just looking for loans for home improvement than there are thousands of alternative options on the market.

Buddy's loves people with bad credit!

With today’s worldwide failing economy, there has probably never been a more important period to get a copy of your borrowing report. Most us haven’t a clue about the criteria banks use to rate their chances of requesting credit – and it unsurprisingly isn’t as simple as you might think.

Criteria such as missed installments on personal loans and credit cards clearly influence banks decisions, but are you aware that you may be declined a mortgage because you haven’t ever had credit? It sounds crazy, but in fact lenders need not only to know that you are not already overloaded, but too that you have a good history of meeting your repayments.

For this reason, banks you have in the past been lent money from supply record keeping companies such as Experian and Equifax with information on how you stand with your credit facilities.

Another thing people frequently don’t know about is debt histories aren’t limited to credit cards, secured loans and mortgages. If you have a pay monthly phone that is going to be detailed on your debt report too. How about your satellite television account? Yes, that’s qualifying as credit as well.

Anything that enables you to generate an invoice could be considered borrowing. By looking at your borrowing file, you might find that you’ve been providing prospective banks more information than you realise, or worse still, wrong info! Only by getting your borrowing file will you see what the lenders can see – in fact, everything they are able to see. There are no debt barred lists, it’s all done by a formula comprising the debt risk profile made up by the information on your application and your debt report.

The great side of this is that you can take simple steps to improve your debt appearance – one example making sure you are fully registered on the resendential list. For more good advice, head over for the free trial of your credit history below – there’s no pressure to continue and buy so it really is risk free. A lot of people do buy after their trial however, as the cheap option could save them a lot of hassle in the long run.

So, why not make an effort to improve yourself right now and get a free trial? The Free Stuff website have joined up with Experian to offer a trial at no cost which means you can see everything on your borrowing report. It’s all on the web, so you will be looking at the same information the bank manager can see in just 5 minutes.

Ok, may be my headline was a bit of hyperbole, but NNN leases will at least open your eyes to an entire new way to do business in commercial real estate. True and complete oneness with the universe might a take a little more time and work. So, in the mean time NNN leases and commercial real estate investment can make you some money and cover your earthly needs.

We’re all aware of standard leases. The run of the mill leasing agreement stipulates the amount of rent you will pay, the duration of the agreement, penalties and other fees you will be responsible for and so on. Many novice investors or those interested in investing shy away from commercial real estate because they assume there will be headaches with tenants, fees, costs and other troubles. NNN leases answer a lot of these concerns.

NNN is short for net-net-net. Net leases come in a variety of shapes and forms. The basic idea behind all of them is that they assign costs that are normally the investor’s responsibility and distribute them amongst the tenants. In a triple net lease the tenant is responsible for net real estate taxes, net insurance costs and net repair and maintenance fees; hence the name net-net-net. There are also single and double net leases as well as different kinds of triple net ones. For example, an absolute triple net lease holds the tenant responsible for replacing the building if a catastrophic incident should occur or for rents if the building is condemned.

The whole point of net leases is to limit your costs and disperse them amongst your tenants. These kinds of leases work best in multi-unit industrial or retail centers. The costs can be divided amongst the various tenants and prorated based on the size of their unit. The great thing about NNN leases and commercial real estate in general is that you spread the risk amongst many tenants. This way you are not completely out of luck if your sole tenant goes renegade on you.

Reality TV has done its part in convincing the pool of potential investors that the only way to go is flipping and anything else is a sucker’s bet. That’s just not true. In these lean days when double-digit property appreciation is gone, the best way to make money is just like how the turtle ran the race; slow and steady. By getting together a small down payment an investor can purchase some commercial real estate, put in some minor cosmetic improvements and implement a net lease to cover the costs.

With this kind of system set up you are free to collect the profits from the monthly positive cash flows and focus your energy on finding new deals. Who knows, you may also have time to sit under a Bo tree for forty days and work on that pesky oneness problem.