1031 Exchange Properties by: Taurean J. Washington
A 1031 Exchange allows property investors and business persons to sell and buy a “like-kind” real property tax deferred or at even greater tax advantages in some cases.
“Like-kind” being very broadly defined, up to three replacement properties can be exchanged and personal property, such as business equipment and furnishings, can be included. Limitations exclude properties such as those held primarily for sale, inventories, stocks, bonds, partnership interests, etc.; anything not listed may be fair game. There are thousands of vacant lots, farms, apartment and office buildings, shopping centers, and motels/hotels available through numerous exchange businesses/websites and intermediaries.
An exchange requires a Qualified Intermediary who is an independent member that, with written agreement with the taxpayer, acquires the relinquished property and transfers it to the buyer. The intermediary further serves to prevent the actual receipt of funds. The intermediary acts as facilitator with the government’s best interest in mind.
The difference realized from an exchange can be used to make improvements to the new property so long as the new owner makes construction or improvement plans know prior to the 180-day exchange period’s end.
For more, check out the IRS website and/or peruse NNN and 1031 property queries.
With some homework, the avid investor or entrepreneur may find that a 1031 exchange is well worth everything invested for both parties. For a more hands-off approach to investing in such exchanges, there are Real Estate Investment Trusts available.
Considering a 1031 Tax Deferred Exchange? Find out more at: http://www.1031exchangemadesimple.com/
Tuesday, September 16, 2008
Monday, September 1, 2008
Real Estate Domain Names
In today's competitive real estate market, your real estate business must have a quality, customer friendly web site to stay in the game. Having an attractive and functional web site won't give you an advantage these days, in fact it is a bare minimum necessity to be competitive at all in the real estate market.
You'll need a more than competent designer to make your website informative and easy to use, but you'll first need to look for appropriate real estate domain names for your business. You can search to see if your preferred domain name is available through the dependable domain name site at http://domains.searchen.com.
When you perform you search for real estate domain names at domains.searchen.com, you'll be able to make sure that your name is available, and you can then purchase it immediately. Even if your site layout is not ready to go live on the internet, it's in your best interest to secure your domain right away because if you don't someone else can snatch it up.
http://domains.searchen.com provide an affordable yearly fee to host the site of your choice, so you won't be breaking the bank when you reserve your perfect domain name for your real estate business. If you are lucky enough to have the exact name of your business available in .com, you should definitely snatch that up right away before someone else buys it. Many people make a business of speculative website buying, so you want to make sure you don't have to pay someone else through the teeth for the domain that was previously within your reach.
You'll need a more than competent designer to make your website informative and easy to use, but you'll first need to look for appropriate real estate domain names for your business. You can search to see if your preferred domain name is available through the dependable domain name site at http://domains.searchen.com.
When you perform you search for real estate domain names at domains.searchen.com, you'll be able to make sure that your name is available, and you can then purchase it immediately. Even if your site layout is not ready to go live on the internet, it's in your best interest to secure your domain right away because if you don't someone else can snatch it up.
http://domains.searchen.com provide an affordable yearly fee to host the site of your choice, so you won't be breaking the bank when you reserve your perfect domain name for your real estate business. If you are lucky enough to have the exact name of your business available in .com, you should definitely snatch that up right away before someone else buys it. Many people make a business of speculative website buying, so you want to make sure you don't have to pay someone else through the teeth for the domain that was previously within your reach.
Sunday, August 31, 2008
Long Island Real Estate
A home in the Hamptons, a dream come true. Long Island Real Estate can range from the quaint to the enormous with prices that can truly astound. This is a short feature on a few such properties. What does 80 million buy in Long Island these days?
Well, it can buy you 11 acres of ocean front in Southampton Village. This 13,000+ square home boosts every conceivable accoutrement and amenity you can imagine. Nine bedroom suites and 11.5 bathrooms along with a heated indoor pool, tennis court and 1,000 feet of oceanfront and an additional 1000 feet of fresh water pond frontage.
The historic Grosvenor Atterbury is on the market for a cool 67 million. Built in 1915 it has been restored to its original splendor. Nearly 18,000 sq. ft. make up this comfortable country home. Leaded glass doors overlook more than 9 landscaped acres with rose gardens and old trees. Also boosts an indoor pool, outdoor pool with pavilion, private tennis court, gymnasium, too much to mention.
80 or 60 million a bit out of your price range? If you head over to East Hampton you can find a nice traditional style, older home for a mere 17.9 million. Three landscaped water front acres are home to an 8 bedroom abode with 9.5 baths and majestic view of Hook’s pond and the Atlantic beyond.
There are currently many homes on the market on Long Island in a wide variety of price ranges. For the right price anything is possible.
Well, it can buy you 11 acres of ocean front in Southampton Village. This 13,000+ square home boosts every conceivable accoutrement and amenity you can imagine. Nine bedroom suites and 11.5 bathrooms along with a heated indoor pool, tennis court and 1,000 feet of oceanfront and an additional 1000 feet of fresh water pond frontage.
The historic Grosvenor Atterbury is on the market for a cool 67 million. Built in 1915 it has been restored to its original splendor. Nearly 18,000 sq. ft. make up this comfortable country home. Leaded glass doors overlook more than 9 landscaped acres with rose gardens and old trees. Also boosts an indoor pool, outdoor pool with pavilion, private tennis court, gymnasium, too much to mention.
80 or 60 million a bit out of your price range? If you head over to East Hampton you can find a nice traditional style, older home for a mere 17.9 million. Three landscaped water front acres are home to an 8 bedroom abode with 9.5 baths and majestic view of Hook’s pond and the Atlantic beyond.
There are currently many homes on the market on Long Island in a wide variety of price ranges. For the right price anything is possible.
Wednesday, August 27, 2008
Understanding the Triple Net Lease
A 1031 exchange triple net lease, also referred to as (NNN), is an investment property in which the tenant is responsible for fees and other upkeep that a landlord is usually responsible for. In this situation, the tenant foots the bill for taxes, maintenance, and insurance. The owner of this type of property does not have to perform normal landlord duties, and can devote all time and attention to the day-to-day operations of managing property.
1031's are most often done with commercial property. Many businesses are interested in triple net leases because they can assume complete control over a property without having to commit a large chunk of their own capital towards ownership. When looking for a company to engage in a NNN, credit ratings are essential, because these leases are generally long-term, 15-30 years. If you are a property owner looking to invest in NNN property, you must having a discerning eye when evaluating potential tenants to avoid future problems. If you are able to secure reliable business to fill your NNN commercial spaces, you can enjoy the benefits of steady cash flow from your investment without the headaches of property upkeep. For both parties involved, this can be a very beneficial situation.
1031's are most often done with commercial property. Many businesses are interested in triple net leases because they can assume complete control over a property without having to commit a large chunk of their own capital towards ownership. When looking for a company to engage in a NNN, credit ratings are essential, because these leases are generally long-term, 15-30 years. If you are a property owner looking to invest in NNN property, you must having a discerning eye when evaluating potential tenants to avoid future problems. If you are able to secure reliable business to fill your NNN commercial spaces, you can enjoy the benefits of steady cash flow from your investment without the headaches of property upkeep. For both parties involved, this can be a very beneficial situation.
Tuesday, August 26, 2008
NNN Properties the untapped Gold mine
Even in today’s real estate market of up and down pricing and interest rates commercial real estate is still one of the best types of real estate there is. The problem is what types of deals are the best and safest investments for you hard earned money. How about NNN properties.
What are NNN properties? NNN properties or triple N properties are properties with a set lease with (most of the time) a big name anchor store (JC Penny or Sears for example) already set in place. The beauty of a NNN property is the cash flow is guaranteed for the length of the lease. Another benefit is you as the owner of the lease pay no taxes, building fees, or insurance. It is all paid be the tenants.
NNN properties are like cash machines wanting to be cashed in. They are perfect for the absentee owner. You put down your money, sign the mortgage, and take over the lease. Then all you have to do is want for the checks to come in every month and pay the mortgage. No more calls for maintenance repairs. All the owner has to do is enjoy his life with a steady income every month.
What are NNN properties? NNN properties or triple N properties are properties with a set lease with (most of the time) a big name anchor store (JC Penny or Sears for example) already set in place. The beauty of a NNN property is the cash flow is guaranteed for the length of the lease. Another benefit is you as the owner of the lease pay no taxes, building fees, or insurance. It is all paid be the tenants.
NNN properties are like cash machines wanting to be cashed in. They are perfect for the absentee owner. You put down your money, sign the mortgage, and take over the lease. Then all you have to do is want for the checks to come in every month and pay the mortgage. No more calls for maintenance repairs. All the owner has to do is enjoy his life with a steady income every month.
Monday, August 25, 2008
Virtual Real Estate Through Domain Names
You might wonder what the next big investment will be. Well, according to USAToday, Domain names are the next big investment. Purchasing a quality domain name will give you a permanent stake in the growing market of virtual real estate.
Buying a domain name is just like buying real estate. If you purchase deckchairs.com then you own it. If someone wants to put a website for that address, they will need to purchase it from you. There are maintenance fees, just like with real estate. You will have to buy it again at it's termination, but this is usually just another $8 charge and all services give you a safe period to buy it back before it's on the market.
The real questions is about the profitability of owning a domain name. Well, again, much like normal real estate, you need to have a legitimate name that will be in demand. Owning sduawesd.com isn't going to do much. It's all about location location location - because that is what a domain is - a location. Grabbing a name that someone could want, preferably a standard dictionary term is a good idea. If demand is high, than so is its value and possible use for development. The good news is that you won't really lose much if you're wrong. Domain names are limited, so they will rarely decrease in value overall. As long as it is a good purchase, and you will sell for more than the purchase price. Just give it time to find it's market.
If I could go back in time, I know what I'd do. I would buy vodka.com and pizza.com. Both of these are standard names that went for a fortune. It was all because someone had the foresight and stamina to let their virtual real estate grow and mature until some big corporations wanted the space.
If you would like to search for a domain name or check availability check out: http://domains.searchen.com - one of the most inexpensive sources of domain registration.
Discuss this in the Domain Name Forum at DDForums.com
Buying a domain name is just like buying real estate. If you purchase deckchairs.com then you own it. If someone wants to put a website for that address, they will need to purchase it from you. There are maintenance fees, just like with real estate. You will have to buy it again at it's termination, but this is usually just another $8 charge and all services give you a safe period to buy it back before it's on the market.
The real questions is about the profitability of owning a domain name. Well, again, much like normal real estate, you need to have a legitimate name that will be in demand. Owning sduawesd.com isn't going to do much. It's all about location location location - because that is what a domain is - a location. Grabbing a name that someone could want, preferably a standard dictionary term is a good idea. If demand is high, than so is its value and possible use for development. The good news is that you won't really lose much if you're wrong. Domain names are limited, so they will rarely decrease in value overall. As long as it is a good purchase, and you will sell for more than the purchase price. Just give it time to find it's market.
If I could go back in time, I know what I'd do. I would buy vodka.com and pizza.com. Both of these are standard names that went for a fortune. It was all because someone had the foresight and stamina to let their virtual real estate grow and mature until some big corporations wanted the space.
If you would like to search for a domain name or check availability check out: http://domains.searchen.com - one of the most inexpensive sources of domain registration.
Discuss this in the Domain Name Forum at DDForums.com
Saturday, August 23, 2008
1031 Exchanges
A 1031 exchange is a method of buying and selling personal property where the transaction creates a tax deferral in the eyes of the IRS. The way it works is simple. You sell a property and then buy another property which qualifies as a "like-kind" exchange. Both transactions do not need to be made simultaneously and are not limited to just real estate. It is because the IRS treats this type of transaction as an exchange, that the favorable tax treatment can be realized.
There are a few rules to follow to take full advantage of a 1031 exchange. The value of the property being acquired must equal or be greater than the amount of the property being sold. The total equity in the surrendered property also must be used to acquire the new property. Not following these rules will not disqualify the 1031 exchange; it merely imposes a tax liability on the difference.
Another important note to make regarding the sales transaction is that the proceeds must be handled by a qualified intermediary (QI). With regard to the IRS, independence is the primary factor for being a qualified intermediary in a 1031 exchange. However in choosing one, bonding, insurance and experience are also important.
A section 1031 exchange is a good way to defer paying taxes due on properties that qualify when you consider that capital gains taxes can exceed 20-30%. Consult your tax advisor to explore the benefits of using this method of tax deferral.
There are a few rules to follow to take full advantage of a 1031 exchange. The value of the property being acquired must equal or be greater than the amount of the property being sold. The total equity in the surrendered property also must be used to acquire the new property. Not following these rules will not disqualify the 1031 exchange; it merely imposes a tax liability on the difference.
Another important note to make regarding the sales transaction is that the proceeds must be handled by a qualified intermediary (QI). With regard to the IRS, independence is the primary factor for being a qualified intermediary in a 1031 exchange. However in choosing one, bonding, insurance and experience are also important.
A section 1031 exchange is a good way to defer paying taxes due on properties that qualify when you consider that capital gains taxes can exceed 20-30%. Consult your tax advisor to explore the benefits of using this method of tax deferral.
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