Tap into a powerful wealth-building tool by employing smart tax strategies.
What Is a 1031 Exchange?
A 1031 exchange involving commercial real estate investments represents a simple, strategic method for selling one qualifying property and the subsequent acquisition of another qualifying property within a short statutory time period. Because the entire 1031 exchange transaction is treated as an exchange and not a simple sale, the taxpayer is able to qualify for a deferred gain treatment.
How Can I Benefit?
Because the 1031 exchange is treated as an exchange and not a sale, there are potential, significant tax benefits, primarily that you can defer the capital gains tax until a future sale. This tax deferral allows you to continue growing your equity.
How Can Newman Kelly Help?
We offer the expertise needed to help you smoothly execute your 1031 exchange. With tight timelines and strict rules to follow, you need a partner who provide you with the most investment property options and who can assure flawless execution.
Let Us Represent You With Finding Your 1031 Exchange Property
Step 1 | Introductory Call
Our advisors will have a short, targeted phone conversation to determine your unique investment goals and criteria. We will ask insightful questions to learn about your target market, property type, debt requirements, tenant preferences, and the timing of your 1031 exchange. We also educate first time exchange buyers with how the process works.
Step 2 | Buyer Needs
We will catalog your investment objectives and property type, cap rate range, etc. into our proprietary database so that we know exactly what types of investment properties meet your criteria. We will tap into our searching software as well as network of brokers and buyers to find the appropriate inventory to meet your goals.
Step 3 | Follow Up & Planning
It may be appropriate to have a second phone conversation and that’s OK with us. We are here to help and do not mind answering any follow up questions the client may have. We will also establish a detailed timeline and plan for executing the exchange.
Step 4 | Transaction Analysis
Newman Kelly will begin sourcing on and off market properties that match the client’s preferences. Any properties that meet the buyer’s criteria will be sent along with an alternative investment analysis that details the various returns associated with a particular investment purchase.
Step 5 | Transacting
Newman Kelly will provide advice, guidance, and support through the entire process so that the client is able to maximize their return on investment. We work closely with the buyer to write Letters of Intent (LOIs), source debt through our in-house financing professionals, negotiate an acceptable Purchase & Sale Agreement (PSA), and guide the transaction through the entirety of the escrow process.
“Nate and his team were instrumental in helping me to navigate a complicated 1031 exchange process.”
25241 FM 2978, Suite C
Tomball, TX 77375
Nate Newman, CCIM
Senior Vice President