At Silber Investment Properties we have a team of more than 30 people continuously engaged with property owners and connecting with NNN properties across the US. We have an array of properties from restaurant chains to drug stores to convenience stores. All these properties vary in lease expiration, rental income and price. Our specialty at Silber is accommodating investors who are in the midst of a 1031 exchange and fitting their needs with the right investment opportunity.
What is a 1031 Exchange?
A 1031 Exchange, or Like Kind exchange, exchange allows an investor to “defer” paying capital gains taxes on an investment property when it is sold, as long another “like-kind property” is purchased with the profit gained by the sale of the first property.
When you sell an investment property, even if you weren’t the one who initially purchased, you are obligated to pay capital gains tax. If you own a rental property that is worth significantly more today than what you (or the original owner) purchased it for, you can can defer the tax liability of the gains through a 1031 exchange.
4 Types of Real Estate 1031 Exchanges
When it comes to doing a section 1031 exchange with real estate, there are four main exchange types investors can choose from. The most common like-kind exchange types include the simultaneous, delayed, reverse, and construction/ improvement exchange. Continue reading to learn more about each type of exchange.
This allows investors to relinquish and close on a replacement property in the same day. Originally, this is what a 1031 exchange was: a direct exchange between two parties. Today, this type of exchange isn’t very common.
The most common type of 1031 exchange is the delayed like-kind exchange. This type of exchange gives investors a maximum 180 days after the sale of their property to identify replacement property.
The reverse 1031 exchange is the most difficult: you buy first and you pay later. This type of exchange must be an all cash purchase.
This type of exchange allows you to any remaining funds not consumed in a new like-kind purchase to build or improve on the property you want to buy.
Work With Silber
If you are in a 1031 Exchange and are looking for your next investment property, contact us at Silber investment Properties. We have an array of properties from restaurant chains to drug stores to convenience stores. All these properties vary in lease expiration, rental income and price. Our specialty at Silber is accommodating investors who are in the midst of a 1031 exchange and fitting their needs with the right investment opportunity.