1031 like-kind exchange, financial advisor, investing

Make the Most from Real Estate Investments with a 1031 Exchange

Defer Tax on Gain

You own commercial real estate with all of its rights and responsibilities. Perhaps you want to cash in on the equity you have built up in the last decade or you are through dealing with tenants. You’re ready to create income without having to work; that’s retirement. Some tactics that may maximize your return are: get out of the market as close to the top of the cycle as you can, defer taxes on capital gains, redeploy gains through an IRC §1031 Like Kind exchange, into property that provides passive income from a professionally managed property as well as diversification of your portfolio.

Market cycle

A real estate market cycle lasts about 10-12 years. As an example, in the greater Seattle area, we are at or near the top of the cycle. Consider the cycle characteristics: seller’s market, demand is high, inventory is low creating bidding wars and rising prices.  Your risk tolerance, time horizon, and opportunities factor into a decision to sell. As a commercial real estate professional in Seattle for over 30 years, I recognize that now is at or near the top of our cycle. If you are considering selling, it may be time.

Like-Kind exchange

You are re-evaluating how real estate fits into your portfolio and you know if you don’t take advantage of the 1031 exchange, a big tax bill may be due. But how do you find the same kind of property with the same level of debt to equity? And, how do you diversify if you have to buy the same kind of property? The rules seem daunting.

Let a Professional Manage Your Property

A Delaware Statutory Trust (DST) offers opportunities to convert the capital gains from your commercial property sale and diversify real estate holdings by purchasing an interest in one or more qualifying properties with similar equity and debt ratios. A DST is an alternative for replacement property for accredited investors seeking to defer capital gains taxes through the use of a section 1031 tax-deferred, like kind exchange.  Review our 1031 DST Properties here.

In a DST, investors own a fractional interest in one or many institution quality, professionally managed, commercial property such as retail malls, multi-family housing, and industrial properties in diverse geographical locations. The DST may provide cash flow income, tax benefits, appreciation, and reduced risk through diversification. A DST allows you to redeploy your money. You keep your hard-earned money working for you.

Investing can seem complicated and working through the intricacies of the Internal Revenue Code overwhelming.Complexity is the enemy of execution: inertia, decision fatigue, and less complicated alternatives may impede long-term strategy. That is why building a relationship with a proven, trusted financial advisor who understands the tax-saving benefits of investing and can walk you through your investment options is so important. An experienced reliable professional will find the most tax-efficient strategies to help you keep more of what you make to reach your financial goals.



IREXA® Financial Services / Wealth Strategies collaborates with CPAs, attorneys, and other tax planning professionals to assist clients with tax mitigation strategies. IREXA® and Great Point Capital, LLC are not tax professionals or attorneys. IREXA® only provides client tax mitigation strategies through, and with the approval of, the client’s professional counsel.

Securities offered through Great Point Capital, LLC, Member FINRA/SIPC, 200 W Jackson Blvd #1000, Chicago, IL 60606, telephone (312) 356-4872. IREXA® is not affiliated with Great Point Capital, LLC. 

©2018 IREXA Financial Services | Wealth Strategies. All Rights Reserved. Privacy Policy

* IREXA® Financial Services / Wealth Strategies, Great Point Capital, LLC and Abacus Insurance Advisors, LLC do not provide legal or tax advice.

**Investing has risks; performance is not guaranteed.   Securities offered through Great Point Capital, LLC (GPC) (member FINRA/SIPC). Robert L. Boggess is an independent representative of Great Point Capital, LLC. IREXA®  Financial Services/Wealth Strategies is not an affiliated company with the Great Point Capital, LLC or CPAAcademy.org. No offer to buy or sell securities is being made. Such offers may only be to qualified accredited investors via private placement memorandum. Neither GPC nor IREXA® are tax advisors. Prospective strategies and products used in any tax advantaged investment planning should be reviewed independently with your tax and legal advisors. Investments are not guaranteed or FDIC insured and risks may include but are not limited to complete loss of principal investment. Risks detailed in a private placement memorandum should be carefully reviewed, understood and considered before investment. Changes in the tax code and other regulatory revisions could have a negative impact upon strategies developed and recommendations made.

Risk Disclosure: Alternative investment products, including real estate investments, notes & debentures, hedge funds and private equity, involve a high degree of risk, often engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop. There may be restrictions on transferring interests in any alternative investment. Alternative investment products often execute a substantial portion of their trades on non-U.S. exchanges. Investing in foreign markets may entail risks that differ from those associated with investments in U.S. markets. Additionally, alternative investments often entail commodity trading, which involves substantial risk of loss.

NO OFFER OR SOLICITATION: The contents of this website: (i) do not constitute an offer of securities or a solicitation of an offer to buy of securities, and (ii) may not be relied upon in making an investment decision related to any investment offering by IREXA®  Financial Services/Wealth Strategies, Great Point Capital, LLC, or any affiliate, or partner of (“Great Point Capital”). IREXA®  Financial Services/Wealth Strategies does not warrant the accuracy or completeness of the information contained herein. FINRA Broker Check: Check the background of this investment professional on FINRA BrokerCheck.