All Forum Posts by: Mike Auerbach

@Arn Cenedella you nailed it! Being realistic is really important when it comes to buying a replacement property. We always advise that if you cant find one that meets your criteria, probably best to just opt out and pay the tax. Although 1031s are still getting done, takes more planning in this current market 

Almost everyone within the commercial real estate investing realm shares a common misconception involving 1031 exchanges. Care to take a guess at what it might be?

"1031s cause you to overpay for your properties" or "I love 1031 buyers, they pay they most for properties"

Both are emphatically FALSE.

It is true that some 1031 buyers overpay for their properties because they are unorganized and undisciplined -

BUT 1031s aren't structured in a way that "Makes an Investor Overpay"

Here is our advice to clients so you don't "overpay"

Before the 45 day identification clock even starts you can do the following:

1. Have your broker shortlist 10 properties for you
2. Identify your replacement property or properties
3. Enter into an option contract to buy your replacement property
4. Put your target property or properties under contract (assuming you are not going “hard”)
5. Do a Reverse Exchange

Plan ahead - Plan to win!

#1031exchanges #taxes #capitalgains #planning #myths

The most important thing is to plan BEFORE an investor closes on the sale of their property. This way it mitigates any timing risk due to the 45 ID period deadlines.

I spoke with someone that couldn't find a replacement property that "fit" into their investment criteria. So I said its probably best to just pay the tax.

If an investor overpay a ton, just to save on taxes, most likely they'll be inflicting significant financial damage to their portfolio… it’s probably best to opt out and pay the tax.

1031s aren't structured in a way that makes someone "overpay" - it mainly comes down to poor planning which puts them in that situation

Never let the tax tail wag the dog!
#1031exchange hashtag#taxes #capitalgains #planning

If you want to identify more than three replacement properties during your 45-day identification period, what are the additional requirements you must follow?

If you wish to identify more than three replacement properties, you can. However, identifying four or more properties means your exchange must also pass one of these two additional tests:

1. The 200% Rule: the combined fair market value of all your identified replacement properties cannot exceed 200% of the value of your relinquished property.
2. The 95% Rule: you can exceed the 200% rule but you must acquire >=95% of the fair market value of the properties you identify.

There is a lot of false information out there regarding 1031 exchanges and one of them is that you'll have to pay taxes eventually. That's a myth!

If you keep rolling one 1031 exchange into another until your time on Earth is up, you will not only have deferred taxes on your gains each time, but you will have accomplished the seemingly impossible: avoiding taxes altogether. How is this? Because when your properties pass to your kin, they get a step-up in basis, effectively making a lifetime worth of gains invisible to the US Government.

Justin - please give me a call 631-438-1031 1031specialists.com

1. No, if you're an LP in a real estate fund or shareholder in a publicly traded REIT, you won't qualify for a 1031 exchange.
   

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Sales Development Representative (Denver )

As a Sales Development Representative, you'll spearhead inside sales, lead generation, and business development. Your mission: cultivate relationships, generate leads, and help drive revenue. With daily tasks ranging from cold calling and appointment setting, you'll be at the forefront of our growth strategy as you learn about 1031s with the opportunity for rapid growth and quick advancement.

Qualifications

· A Hunter Mentality: fearless in cold calling and initiating conversations

· Resourceful and relentless – comfortable that there will be uninterested prospects

· Proficiency in inside sales and lead generation

· Prior experience in sales and business development

· Exceptional communication skills

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· Inquisitive nature, unafraid to ask questions

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Commercial real estate industry experience is a + preferably as a former investment sales broker -

but not required

Salary Range

This job is a base plus commission job. Depending on experience and on the job success, the total compensation of the job is between $40,000-80,000.

Interested applicants should send resumes to [email protected] or better yet call 631-438-1031

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