WE DO 1031 EXCHANGES

The IRS 1031 Exchange is a program to protect real estate investors. To be eligible you must own property that produces income and want to buy a new income producing property. This can be an apartment building, two-flat, house, or condo rented to tenants. If you own any real estate that produces you money, then this option is available to you.

When you list your income property with Bob Floss & Son Realty and we obtain a buyer, we pay very close attention to two important details, the sale price and the closing date.

The sale price is important because that’s the limit we can spend on a new income producing property. If your property sells for $100,000 then the new income property must be purchased for $100,000.

The closing date is important because that’s the starting point. From the moment your property closes, we are on the clock. We must identify a new income producing property within 45 days and close on it within 180 days. This aspect of 1031 Exchanges can make the experience stressful and create a mess for the buyer if time is running out.

Why would you want to put yourself through such a stressful situation? The reward for you is paying no taxes on the transfer of the properties. All the money from the old property can go into the new property, preserving your hard earned investment money.

Why sell your income property? Owning investment property is smart long term financial planning. However, some investors make the mistake of staying with the same investments for too long. Investment property either has potential or has met that potential. If you have been with the same property for many years, it may have met its potential. Buying a new piece of investment property for the same price but with unmet potential allows you to reap the reward.