Realized Blog

What Is a Clawback in a 1031 Exchange?

What Is a Clawback in a 1031 Exchange?

The 26 U.S. Internal Revenue Code § 1031 is a handy tool if you own real estate used for trade or investment purposes and want to sell it without immediately triggering taxes on the capital gain on that sale. However, as we’ve ...

1031 Exchange
Jun 27, 2022

Do Tenants-In-Common Have Rights of Survivorship?

Do Tenants-In-Common Have Rights of Survivorship?

Holding property in a shared arrangement with others may take several forms. Each has particular advantages and potential risks. Two of the more common structures are joint tenancy and tenants-in-common (TIC). Let’s look at the ...

Tenants In Common
Jun 27, 2022

Why Are Qualified Intermediaries Referred to as Accommodators?

Why Are Qualified Intermediaries Referred to as Accommodators?

A Qualified Intermediary plays an essential role in successfully executing any 1031 exchange. This professional has several critical responsibilities to ensure that the exchange complies with IRS regulations. Perhaps most importantly, ...

Qualified Intermediaries
Jun 26, 2022

What Does Recession Rich Mean?

What Does Recession Rich Mean?

Recessions are part of a normal business cycle, but that doesn’t mean anyone wants to experience one. Forbes explains that a recession is “a significant decline in economic activity that last for months or even years.” 1 Typically, a ...

Financial Planning
Jun 26, 2022

What Does An Asset Manager Do in Real Estate?

What Does An Asset Manager Do in Real Estate?

In basic terms, an asset manager manages assets. When the term is related to real estate, the asset manager is responsible for managing someone’s real estate assets. That means making decisions about the real estate portfolio to help it gain value and to manage risk. An effective real estate asset manager will need to understand the market, keeping current with research, including financial, political, and economic events. Note that an asset manager is not a property manager who manages an investment property's physical and financial operations.

Jun 25, 2022

When Did REITs Start?

When Did REITs Start?

A REIT is a Real Estate Investment Trust. This fractional investment structure provides an opportunity for investors to participate in commercial real estate without being involved in the actual management or maintenance of the property. REITs own, operate, or finance properties intending to earn income for their investors. They work like mutual funds. The REIT Act was part of the Cigar Excise Tax Extension of 1960, passed by Congress and signed by President Eisenhower to broaden access to real estate investing. REITs were advanced further with the Tax Reform Act of 1986, which enabled REITs to operate and manage real estate in addition to owning or financing it.

Jun 25, 2022

What Are the 1031 Exchange Rules in Texas?

What Are the 1031 Exchange Rules in Texas?

We’ve provided—and will continue to provide—a great deal of information about the 1031 exchange process. Much of the information in our blogs is based on the Internal Revenue Code, which involves federal legislation. But many states have their own regulations when it comes to successfully completing 1031 exchanges to help defer capital gains taxes. 

Jun 24, 2022

What Is Unsystematic Risk?

What Is Unsystematic Risk?

Portfolio diversification is a risk management strategy that many investors follow. But what risks are investors trying to reduce through diversification? Some risks can’t be reduced, but that isn’t what diversification is after. Diversification helps manage unsystematic risk. In this article, we’ll go over what unsystematic risk is.

Jun 24, 2022

Are REITs Redeemable?

Are REITs Redeemable?

Real estate investors can choose to buy investment properties directly or place their money into a real estate fund. If you're interested in real estate investing but want to add even more diversification to your portfolio, you could also consider investing in a real estate investment trust (REIT). These are companies that are designed specifically to own and operate real estate that generates income. While REITs are often considered alternative investments, you may be wondering if this type of investment is redeemable. Here's a closer look at what REITs are and if they can be redeemed.

Jun 23, 2022

Can a 1031 Exchange Be Used for Farmland?

Can a 1031 Exchange Be Used for Farmland?

As has been pointed out time and time again, the 1031 Exchange is in place to help investors defer taxes on capital gains by allowing them to swap one type of real estate held for trade or investment for another (with assistance from a Qualified Intermediary). And most like-kind exchange discussions tend to center around commercial real estate, or residential property used to generate rental income.

Jun 23, 2022

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