Opportunities & Solutions in Today’s Market
It takes a lot to do some deals today. Here is our latest Deal of the Month: Our client had a rental house that he intended to Exchange into a new building for his business. The new building was in escrow though there was no action on the rental house. We were not comfortable with the potential to sell the property in time for the closing, even using a reverse Exchange.
After reviewing the objectives and the options available, it was decided the purchase would move forward without being involved with an Exchange at that time. A year and a half later the rental finally sold and an Exchange was structured for improvements on the new property.
The improvements satisfied the Exchange requirements and in turn our exchangor paid no tax and had a beautiful new facility.
The Details of the Deal
A year and a half ago a prospective client was referred in to us for a Reverse Improvement Exchange. After reviewing the client’s objectives, status of the properties involved and the nature of the market at that time it became apparent to us the timelines would be very difficult, if not impossible to work with.
Instead of structuring the Exchange as a Reverse Improvement Exchange as originally planned we proposed structuring a Leasehold Improvement Exchange when the relinquished property had a sale in the future. Our assumptions were correct and nearly eighteen months later the rental house was in escrow. The property was closed and roughly $250k in Exchange proceeds were received. Improvements on the replacement property totaled many times the value and equity of the relinquished property and our strategy would clearly work.
The sale of the relinquished property was structured as a basic delayed Exchange and a lease for the replacement property was drawn. We created a new EAT (Exchange accommodation titleholder-LLC) to enter into the 30-year lease. The EAT entered into contracts for the improvements and the $250k of work was completed, satisfying the 1031 Exchange.
Leasehold Improvement Exchanges are terrific solutions for exchangors wishing to improve property that is already owned by the exchangor. Call or visit us today for details on this powerful tool, we are the guys with the answers!
Online Classes Coming Up..
Wednesday, January 27th – 1031’s For Today: Exchange Stories You Won’t Forget! (1 Credit Hr.)
Why should someone sell if they have nowhere to go? See why today more than ever 1031 Exchanges are necessary to keep investor’s equity working for them! This informative class covers 1031 Exchange fundamentals and a case study of recently structured deals. So you think you lost money on your real estate… Gain has nothing to do with profit, and even a loss to foreclosure or short-sale can trigger phantom gain. Find out how 1031’s are more important today than ever before!
Register for our next 1031 Exchange webinar on Jan 27, 2021 10:00 AM PST at:
https://register.gotowebinar.com/register/2212974271081825552
After registering, you will receive a confirmation email containing information about joining the webinar.
Thursday, January 28th – IRA Investment Options for the Future! Don’t Get Stuck on Wall Street… (1 Credit)
Real estate has been sold as an “alternative” investment by Wall Street yet there is little if any investment that is more REAL. Today more than ever tangible assets such as real estate offer stability and dependability that just is not possible from the securities world. Find out how to invest retirement accounts in real estate, notes and loans! A truly self directed account will allow you to own anything you currently own, plus anything the law allows.
Register for our next IRA webinar on Jan 28, 2021 10:00 AM PST at:
https://register.gotowebinar.com/register/5492287492133146384
After registering, you will receive a confirmation email containing information about joining the webinar.
MORE INFORMATION
The Equity Advantage Incorporated Channels
Head to our channel and watch as owner of Equity Advantage David Moore speaks on 1031 Exchanges and other issues concerning commercial real estate in today’s unique market.
IRA Blogcast: Can I Partner with my Self-Directed IRA? How Does Joint Ownership Work?
1031 Exchange Ask the Experts: Life Insurance is AN ASSET! Learn How to Utilize Yours Today
Visit our Video Library for more videos!
The Guys With All The Answers…
David and Thomas Moore, the co-founders of Equity Advantage & IRA Advantage
Whether working through a 1031 Exchange with Equity Advantage, acquiring real estate with an IRA through IRA Advantage or listing investment property through our Post 1031 property listing site we are here to help Investors get where they want to be. About Us…
