1031 Exchange Services
For investors considering selling a real estate investment and deferring tax payments on their capital gains, a 1031 exchange could be an option for reinvestment. Understanding the complex guidelines for the 1031 exchange process can be challenging. However, with the right professional services, the process can be more convenient and accessible for any Accredited Investor.
As an investor, you can gain several advantages from finding experts who have the resources and experience to handle your exchange logistics. Working with the professionals can save you time and energy while reducing the potential for stress. When you understand your options for exchanging your investment property holdings according to IRS guidelines, you can confidently move forward.
How the 1031 Exchange Process Works
A 1031 exchange can be a powerful tool for building your investments. You can use this option to reinvest funds from your property investments without your capital gains becoming taxable income.
The process adheres to Section 1031 of the U.S. Internal Revenue Service code, which allows you to defer paying income taxes on investment properties when you comply with certain conditions. When you sell one investment property, you can use the profits to purchase another property of the same type.
Investors might consider choosing a 1031 exchange for the following reasons:
Restarting property depreciation: If you sell your current investment property and put those profits into new real estate, you can reduce the potential depreciation you'll need to recapture in the future.
Diversifying assets: You can make a property investment exchange to diversify your asset types and strengthen your risk management strategy.
Consolidating properties: Rather than managing multiple holdings, you can exchange several properties for one new piece of real estate. That way, you can use your time and resources more efficiently, putting them into upkeep for only one property.
Increasing return potential: By deferring capital gains taxes, you increase your purchasing power, allowing for potentially greater returns on the replacement property.
If you're looking to reinvest for any of these reasons, a 1031 exchange can help you save on tax payments and build up your resources.
Since direct exchanges are not usually tenable, using the right professional services to make the process more seamless can be an ideal option. Working with an exchange syndication platform and an intermediary can help you complete the process successfully. They provide the platform you need to find investments and safely hold your money in the interim between selling and buying — reducing the steps you need to navigate to complete the exchange.
What Does 1031 Crowdfunding Do?
As a 1031 exchange syndication platform, we take the hassle out of finding high-value properties to exchange. At 1031 Crowdfunding, we offer the opportunity for you to have partial ownership of a property. Instead of having all the financial and logistical responsibilities of the real estate, you can simply contribute your share of the investment funds and let professional managers handle the logistics of property ownership.
When you work with us, you have access to a wide selection of eligible investment properties on our innovative platform. You can assess your options and get the documentation and details you need before moving forward. Once you've made your decision, our expert team walks you through the buying process and the paperwork to ensure it's completed correctly. Our online investor portal gives you easy access to all the necessary documents.
The Role of an Exchange Intermediary
An exchange intermediary is crucial to complete the 1031 exchange process. According to Section 1031, your property sale is taxable income if you get the profits of your sale directly. You can navigate around this stipulation and be able to reinvest your money by working through an intermediary.
A qualified intermediary holds the profits you make from selling your original investment property. When you choose a new replacement property, they transfer those funds directly to acquire the new real estate. To qualify to provide this service, the intermediary must be a third party who does not have an affiliation with any of the buyers and sellers involved in your exchange.
For help finding the right service provider for your exchange, 1031 Crowdfunding can recommend qualified intermediaries to handle the process.
Why Should You Use 1031 Exchange Companies?
Choosing the right 1031 exchange company is key to making your exchange process easier for all parties. At 1031 Crowdfunding, we provide the services needed for a successful exchange, saving you time and energy while reducing the potential for stress.
Investors who work with 1031 Crowdfunding can experience the following benefits:
Fast closing time: You don't have to expect 180 days to close on a property — most of our clients close in 3-5 days.
Expert team members: Our professional team has extensive experience and qualifications to ensure all your paperwork adheres to IRS stipulations so you can qualify for tax deferment.
Variety of DST investments: We have an extensive selection of DST investments available, so you can make informed choices about investments that fit your goals and preferences.
Personalized service: We give you customized assistance to complete the exchange efficiently and conveniently.
Accessible resources: We provide clear answers to your questions and concerns, and we offer complete information about the properties you're considering.
Partial ownership: You want hands-off investments that let you spend your time on other concerns besides managing a property. We give you the benefit of investing without the maintenance responsibility.
Work With Us for Your 1031 Tax Exchange Real Estate Investments
Whatever your investment plans, let us provide the support you need for a successful exchange. To get started, Join the Crowd today.
This material does not constitute an offer to sell or a solicitation of an offer to buy any security. An offer can only be made by a prospectus that contains more complete information on risks, management fees, and other expenses. This literature must be accompanied by, and read in conjunction with, a prospectus or private placement memorandum to fully understand the implications and risks of the offering of securities to which it relates. As with all investing, investing in private placements is speculative in nature and involves a degree of risk, including loss of your principal. Past performance is not necessarily indicative of future results and forward-looking statements and projections are not guaranteed to achieve the results described and your actual returns may vary significantly. Investments in private placements are illiquid in nature and there may be no secondary market or ability to sell the investment should the need for liquidity arise. This material should not be construed as tax advice and you should consult with your tax advisor as individual tax situations will vary. Securities offered through Capulent, LLC, member FINRA, SIPC.