The National
1031 Club Property Database Las Vegas, Nevada
What is
the 1031 Club?
It’s a group of real estate
professionals trained to help individuals acquire or sell investment real
estate. This could be the acquisition, sale, or exchange of a condo, home,
hotel, apartment complex, land, business, office building, warehouse and so on.
Just about any property held for investment qualifies!
And while there are
thousands of professional realtors helping buyers and sellers every day, there
are very few who are schooled and prepared to locate, analyze, and
procure investment-grade 1031 real estate for the first-time buyer as well as
experienced investor.
With that said, we dedicate this site to:
1. Licensed Professionals
and Investors wishing to list their investment properties;
2. Buyers looking
for Real Estate Investments or replacement property;
3. Anybody wishing an
education or news about 1031 Exchanges
Please
email us or call us at 702-547-1031 to discuss
any investment or sale you may be considering and allow us to offer you a free
consultation.
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Why Invest in Real
Estate?
Because, simply, over any measured time period, real estate as an investment has
significantly out-performed all other major asset types (stocks, bonds, gold,
cash, CD's...etc.). This has never been more evident than over the past few
years.
What are the
Benefits of Investing in Real Estate?
Four investment benefits are possible from a Real Estate investment. They are:
Property Appreciation, Cash Flow, Depreciation and Tax Deferral or Gains on a
Sale. Other assets such as stocks, bonds, money markets...etc., may benefit from
one or two of these (appreciation of stock or cash flow via a dividend).
However, it is very rare to achieve all four or even three of the benefits you
can by investing in real estate. Let me explain each benefit:
1) Appreciation - Simply the increase in value of the asset
over a specific time-period.
2) Cash Flow - Cash flow is
the difference between the monthly expenses of a property (loan servicing,
property management, maintenance, utilities, taxes) and the income produced by
that property (rent, fees, insurance, taxes).
3) Depreciation -
This is a calculation that investors use to deduct a portion of the cost of the
property each year. An example might be a $1,000,000 office building. Typically
the land value is viewed as approximately 25% or so of the purchase price. In
the example, that leaves about $750,000 left to depreciate. For an office
building, the IRS allows depreciation to be stretched over 27.5 years. In this
example, the investor would be able to expense $27,273 per year as an expense
against income even though that $27,273 has never actually been spent.
4) Tax Deferral - The process of deferring taxable-gains made
on an investment property is called a 1031 exchange, so named after the tax code
that permits the exchange. A 1031 exchange allows an investor to sell a property
for a gain and to reinvest those proceeds in I or more properties that have a
value greater than the amount the investor sold their original asset for. An
example is an investor who bought a property for $500,000 and sold it for
$750,000 2 years later. The investor soon after the sale identified and opened
escrow on a bigger property worth $800,000. The investor never took possession
of the proceeds from the sale of his previous property. The investor can use
those proceeds to buy the new property without having to pay the taxes on the
gain from his sale.
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Please
contact us to discuss any investment or sale you may be considering and allow us
to offer you a free consultation.
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