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Recently our sister company introduced an innovative new way to join the Tenancy in Common real estate investment movement. With self-storage TICs, individual owners can join the lucrative world of self-storage facility ownership – without the individual ownership price tag.
Added by Dr. Robert G. Hetsler, Jr. on March 30, 2017 at 10:21am — No Comments
Recently, our sister company – Self-Storage TICS, LLC – debuted a rare investment opportunity. They introduced the concept of a Tenancy in Common (TIC) ownership strategy for self-storage facilities. As noted here, the concept is unique and quite beneficial to investors. However, some investors may be unfamiliar with the concept of a #TIC.
Tenancy In Common…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 28, 2017 at 9:54am — No Comments
Financing planning is an important aspect of real estate investing, and most of the realtors pay special attention to it. However, when it comes to retirement planning, we often prioritize other financial responsibilities instead. It’s critical to understand that you’ll need at least 80% of your current income to maintain your current standard of life during retirement. The good thing is that there are retirement options that allow you to accumulate retirement…Continue
Added by Dmitriy Fomichenko on March 28, 2017 at 9:17am — No Comments
What’s happening in the New Jersey real estate market now?
We’ve seen some quite diverse real estate statistics across the map over the last few months. So, what’s happening in NJ? How is the market shaping up for property and note investors?
The Digits You Should Know
As usual the numbers can vary depending on who you ask. So, check out who is reporting what, and…Continue
Added by Fuquan Bilal on March 27, 2017 at 7:11am — No Comments
If a #1031 exchange is on your horizon (and why not? It’s a great way to defer capital gains taxes), then understanding the rules of the game is not optional. The IRS is very strict about applying their rules that govern these amazing tax-deferral transactions. No surprise there.
One of the most common pitfalls that I see in my work with clients on these type of real estate transactions? Missing the deadline to name possible replacement properties.
You may know that you have 45…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 27, 2017 at 5:37am — No Comments
Sprawling horse ranches and farms are a fact of life throughout #Florida. With an enviable climate and space to roam, the Sunshine State rightfully attracts those who need the space and weather for year-round training.
But when a ranch owner is ready to sell and move on to greener pastures, the sale of all that expensive land can make April 15th a very stressful and expensive time. Of course, with appropriate planning, a savvy farm owner can avoid capital gains taxes on the sale of…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 26, 2017 at 7:32am — No Comments
Whether you are new to the world of real estate investing or are a seasoned veteran, the idea of a high return, low involvement investment opportunity is always difficult to ignore. And much of the time, these seemingly impossible investments are just that – smoke and mirrors. But not all.
If you are searching for a low risk opportunity with reasonable returns and no management headaches, the world of Self-Storage Tenancies in Common might be ideal for you.
Imagine a real…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 25, 2017 at 2:06pm — No Comments
Given that not only real estate, but many other types of property, can be exchanged using section 1031 of the IRS code, you might think that anything you own qualifies. Of course, that is not true.
Although section 1031 has been around since the 1920s, in 1986 the government revised the code to exclude certain types of property from exchange qualification. Before you embark on a 1031 exchange, be sure to understand whether your relinquished and replacement properties…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 21, 2017 at 7:22am — No Comments
For many non-professional investors, #1031 exchanges are used primarily for real estate transactions. However, the IRS code also allows for a variety of personal property to qualify, too. In fact, personal property exchanges are just as common as real property exchanges.
Where it gets complicated, though, is application of the “like-kind” rules. The IRS regulations establish safe harbor definitions related to like-kind personal property. The key is that the replacement property must…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 20, 2017 at 4:51am — No Comments
A Delaware Statutory Trust (commonly referred to as a DST) is, as the name suggests, a legal entity created as a trust under Delaware state law. A #DST is created for real estate investment purposes, and is especially useful in a #1031 exchange.
Under a DST, investors each own a pro rata share of the DST itself. The DST in turn holds title to various real estate interests, and distributes any income received from the properties (either through rental income or the sale of the…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 18, 2017 at 7:29am — No Comments
Roth IRA is one of the well-known and oftentimes considered best IRA for self employed. If you are looking for reliable financial investment and retirement account, it is imperative to know more about this plan. Nowadays, you might find it more challenging to decide what retirement account to choose. There is a big difference as well as similarities…Continue
Added by Dmitriy Fomichenko on March 18, 2017 at 1:19am — No Comments
I’m proud to announce that I’ll be presenting at this weekend’s Realty411 industry event in sunny Ft. Lauderdale, FL.
I’ll be discussing how TICs and DSTs can be beneficial in your next 1031 exchange, along with other important real estate investing topics.
So if you’re a real estate investor already or just…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 16, 2017 at 7:39am — No Comments
Even before November’s surprise election results were known, real estate investors were keeping a wary eye on the future of Section #1031 of the IRS Code. The Obama administration had sought caps on transactions, and then-candidate Clinton had done the same. But it was the ultimate victor, Trump, who may have the biggest influence on the future of this oft-used section of tax code.
While no one can predict when or if section 1031 will be limited (or eliminated altogether), that isn’t…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 15, 2017 at 7:41am — No Comments
One common scenario I see in my work as a qualified intermediary is property subject to a #1031 exchange being held by co-owners. The type of ownership varies from transaction to transaction. For example, some relinquished properties are owned by spouses in their individual capacity. Others are owned by LLCs. Such ownership structures are fine for a 1031 exchange, so long as one rule is followed.
Each person with an ownership interest must sign off on all exchange-related…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 11, 2017 at 7:43am — No Comments
As an investor pursuing a #1031 exchange, your goal is to defer capital gains on the transactions. Of course, investors are only human, and life sometimes throws a curve ball that nobody anticipated. In some instances, like the illness of the investor or a substantial change of circumstances, the investor may seek an early release of exchange funds. Is this possible?
With very limited exceptions, the IRS says no. Not a very helpful bunch sometimes, it seems.
However, in certain…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 10, 2017 at 6:44am — No Comments
If you’re an investor who’s successfully used the power of a #1031 exchange to reduce your capital gains #tax liability and grow your portfolio, you may be wondering “what’s next?” After all, the tax savings is great and you’ve steadily increased the value of your properties along the way.
As a savvy investor, perhaps you are ready to step up to fractional or co-ownership investments. Vehicles like Delaware Statutory Trusts or Tenancies in Common allow groups of investors to pool…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 8, 2017 at 11:59am — No Comments
One of the cardinal rules of any #1031 exchange is that the relinquished property and replacement property must be “like kind.” Unfortunately, when real estate is involved in the exchange, there is a fairly common issue that many investors unwittingly face – the involvement of personal property in the deal.
This most commonly occurs when an asset like an apartment building (that includes household appliances such as refrigerators, washers or dryers) is exchanged for other real estate…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 7, 2017 at 7:21am — No Comments
To successfully complete a #1031 exchange, you will need to avoid having actual or constructive receipt of the sale proceeds of the relinquished property during the pendency of the exchange. The way to do this is with use of a qualified intermediary. They will hold funds and title to avoid any violation of IRS rules.
However, not just anyone can function as your qualified intermediary. While you might understandably turn to your own personal accountant or attorney to fulfill this…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 5, 2017 at 8:38am — No Comments
Section #1031 of the IRS code is surprisingly flexible when it comes to the number and types of properties you can exchange. There are constraints of course, because after all this is the IRS. Still, investors will find they have many choices when it comes to quantity and type of properties to exchange.
In fact, it doesn’t matter how many properties you are relinquishing or replacing (1 property into 4, or 2 properties into 1 or any other combination). The only requirement is that, at…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 2, 2017 at 10:01am — No Comments
When the concept of #1031 exchanges were first introduced in the early 1920s, the original intent was to aid two parties in the simultaneous exchange of real estate. Party A and Party B simply exchanged real estate with each other and contributed cash (that would be taxed) if the selling and purchase prices didn’t equalize out. It worked great, until it didn’t. After all, how often could an investor find another similarly situated investor to exchange property with? Gradually, deferred…Continue
Added by Dr. Robert G. Hetsler, Jr. on March 1, 2017 at 10:06am — No Comments