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Exchange Strategies
The 1031 Exchange has become a powerful, wealth-building strategy for real
estate investors.
In many parts of the country, property values have escalated dramatically resulting in investors facing
significant capital gains taxes if they wish to sell their property. In addition, rental income potential often
has not kept up with appreciation. This can adversely affect a property owner’s overall monthly cash flow.
The 1031 Exchange has become a powerful investment strategy to combat these issues. The 1031 Exchange allows you to
defer capital gains and recapture taxes––sometimes indefinitely.
Thus, your money is kept working for you by allowing you to move your equity and debt into “like-kind” property
better suited to your investment objectives.
However, if you are looking to simplify your life, a simple 1031 exchange into another solely owned, self-managed
building might not be the answer. That’s where fractional ownership interests come into play. If you are considering
selling your property but you’d like to get out of the landlord business––or you are in need of a more predictable
monthly income––fractional real estate ownership (through a TIC or Energy replacement property) may be a strategy
well worth looking at.
An investment strategy that includes exchanging into Tenant-In-Common (TIC) and/or Energy replacement properties
provides you the potential to:
– Quickly identify property choices
– Participate in investment-grade property that you may not be
able to afford to purchase on your own
– Build wealth and increase cash flow
– Enjoy professional property management instead of "hands on"
tenant care
– Use leverage to increase appreciation
– Match debt and equity needs to minimize boot
– Assume non-recourse financing (if required)
– Diversify by geographic area and/or property type
– Enjoy high potential income through Oil and Gas royalties or
working interests
– Utilize Direct Capital Securities’ professional acquisitions and due
diligence teams instead of searching for properties on your own
Whether you’re looking for a single-property TIC investment, or you’re looking to diversify your portfolio
with energy options, we can help put your 1031 exchange strategy into action.
If you are interested in learning more about our products and services, please contact us for a
complimentary consultation.
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RESOURCES
"A 1031 Exchange Vehicle for Small Investors" An article from National Real Estate Investor magazine
PDF download
"TIC Reinvestment Strategies" An article from National Real Estate Investor magazine
PDF download
Direct Capital Securities, Inc. Replacement Property Brochure
PDF download
Do you have a question?
Email us and we will
respond within 24 hours.
info@1031market.com
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