Why?
To leverage existing equity into a larger investment without the equity reducation resulting from payment of capital gain taxes upon the sale of your present property.
When?
As the property holding period grows, any increase in the rate of return tends to decrease. Exchanging the equity into a larger property can revitalize the rate of return growth together with the absolute size of the dollar return of the investment.
When Not To!
The feasibility of an exchange can be determined by a careful analysis of the existing property, possible exchange properties, and their respective market areas and projected market activity. The investor's desire and ability to effectively manage either property must also be considered.
Q&A Representatives are experienced in both advising refinance and reinvesting strategies and 1031 exchanges. Contact us for more information by clicking here. |
