1031 Exchange Property Types: What Are Considered Like-Kind Properties?
When a real estate investor sells a property, they might be eligible for a deferment of capital gains taxes through a 1031 Exchange if they purchase a replacement property called a like-kind property.
Can I Use A 401K For Real Estate Investment?
If you’re self-employed or a small business owner with a solo 401(k) or Roth 401(k) or if you’ve retired or changed jobs and have assets in an employer-sponsored 401(k), real estate investment is an attractive option for long-term growth potential.
From V To Swoosh: CRE’s Projected Recovery
Since the Covid-19 pandemic nearly decimated the U.S. economy in March, economists have been offering varied predictions about the recovery. There was initial hope for a quick V-shaped return, but that proved overly optimistic. Some experts have forecast a Nike swoosh shaped recuperation, with the caveat that the healing for real estate will lag jobs by at least several months. Early confidence has fallen victim to the continued spread of the virus, which continues to elude containment in much of the United States while also showing renewed strength in other countries. Congress's inability to agree on a second round of stimulus support before the November election adds to the markets' uncertainty. The result is a lack of consensus on both the shape and timing of the economic, job, and real estate recovery.
Can You Buy Out An LLC Or Partnership In A 1031 Exchange?
Partnerships can be an efficient way for multiple investors to purchase commercial real estate. Combining capital often helps investors buy commercial assets that would be beyond their reach as individual investors.
What Is A Triple Net Lease Agreement?
Commercial leases take various forms, and the type you choose, either as a tenant or an investor, may impact your financial results. A gross lease means that the landlord (owner) covers all the property's operating expenses with the tenants paying rent for their respective space, perhaps with a load factor for common areas. Sometimes the utility costs are included in the rent, and at other times they are charged separately by the tenant. In a modified gross lease, the tenants pay rent plus a portion of the building’s annual operating expenses, subject to individual negotiations.
What Is A Private Placement Memorandum, When Do I Need It, And How Much Does It Cost?
When investing in most private funds, you will receive a document called a private placement memorandum or PPM (also called an offering memorandum or offering document). This is a critical document to look over and should be made available to you with other closing documents. It is similar to a prospectus for mutual funds. The PPM discloses information about the investment and is meant to provide enough data for investors to make an informed investment decision. After reviewing the PPM, you should be able to decide if the investment is a good fit.
1031 Exchange & High Cash Flow Real Estate Investments
Tax savings from a 1031 exchange can be substantial. A 1031 exchange can be a great way to defer capital gains taxes, diversify your portfolio, and there’s a potential to grow your wealth through investment in high cash flow real estate. By doing a 1031 exchange, you can purchase replacement property, passive income potential, manage risk, and defer taxes.
What Are Triple Net Fees In A Lease?
Commercial property leases can take several forms. There are fundamental gross leases in which the tenant pays rent and usually utilities. Gross leases are most like residential rentals in that the owner bears the operating costs of the property. There are leases on the opposite end of the spectrum called absolute leases. The tenant assumes responsibility for virtually all property expenses, including real estate taxes, insurance, maintenance, and repairs. Large national clients generally undertake these. In between these extremes are the categories of net leases (single, double, and triple), which shift some operating expenses from the property owner to the tenant or tenants. Typically, a commercial real estate investor may look to one of the net lease options to reduce property oversight and enjoy stable and predictable cash flow. The net lease usually includes the following:
What Is The 1031 Plan, And What Do You Get?
A 1031 exchange is defined under section 1031 of the IRS code, and it’s a strategy used by taxpayers to defer capital gains taxes on a business or investment property. Upon the sale of the property, the taxpayer must find and purchase a “like-kind” replacement property with the profit gained from the sale of the relinquished property within a strict time period dictated by the IRS.
How Much Is Capital Gains Tax On Real Estate?
Are you thinking of selling your real estate investment property and worried about capital gains and tax consequences? When you sell your investment property at a profit, you’re liable to accurately report your capital gains to the IRS and to pay taxes on what you made from its sale.
