Top 1031 Exchange FAQs
1031 Exchanges can be confusing, from deadlines to replacement properties, there are a lot of things to consider! Below are a few frequently asked questions that may help provide some clarity.
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TFS Properties is a full-fledged real estate brokerage that focuses on 1031 Exchange Planning & Commercial / Residential Real Estate. Our relationships with key brokers & acquisitions teams give us access to properties before they hit the open market. We focus on out-of-state commercial real estate but assist with listings in Los Angeles where our offices are located.
Off-Market Properties available: NNN / Multi-Family / Government & Medical Facilities / Out-of-State / Single-Family Rentals / Brand New Development & More.
A cap rate (also known as a “capitalization rate”) is a real estate valuation measure used to compare different real estate investments. Although there are many variations, a cap rate is often calculated as the ratio between the net operating income produced by an asset and the original capital cost (the price paid to buy the asset) or alternatively its current market value.
Cap Rate = Annual Net Income / Cost (or Value)
Section 1031 of the Internal Revenue Code allows you to dispose of certain real or personal property and defer the payment of your federal, and in most cases, state depreciation recapture and capital gain income tax liabilities by exchanging the real or personal property (downleg / relinquished property) for qualified use “like-kind” property (upleg / replacement property).
The best time to do a 1031 Exchange is when you have an appreciated asset & would like to defer the state & federal capital gains tax. It is best to sit down with an Investment Agent & Tax Preparer prior to listing your property in order to maximize your exchange.
There is a 45-day period in which you are required to identify your replacement properties & from our experience, you never want to wait until the last minute. We have hassle-free off-market rental properties available.
Real estate can be purchased directly through a self-directed IRA, transferred from an existing IRA / Roth-IRA, or rolled over from a qualified plan and/or 401(k).
Please contact a TFS Real Estate consultant if you need help selecting a custodian. We have great partners that can help!
Our 25+ years of experience in real estate & database of over 10,000+ real estate investors make it easy to find a buyer for your qualified property. In addition, TFS Properties helps investors identify & close escrow on high-quality replacement properties with high cap rates (%).
For our Los Angeles Investors, while you are selling your property in a peak market, you are also buying into a peak market as well. We have commercial NNN properties located out-of-state with national & credit tenants. Learn More.
Yes. Investors are able to invest through an LLC or trust.
Portfolio MGMT FAQs
Here are a few of our top questions we frequently get asked about how we manage their portfolios.
TFS Properties, alongside our partners & property management teams, offers monthly statements to investors in order to track rental income, maintenance, & expenditures. Yearly statements are also given for IRS purposes.
You can also contact our Client Services via Live Chat or send an e-mail to info@tfsproperties.com and one of our Investment Agents will contact you within 24-hours to help answer all of your questions regarding your property.
While our primary objective is always to protect investor capital, TFS Properties also utilizes data-driven analysis in our projections. While many agents are aggressive in their analysis, we are always risk-adverse & conservative when our projecting returns to our clientele.
Nonetheless, investors should also perform their own due diligence before considering any investment. Past performance and/or forward looking statements are never an assurance of future results – that is the universal rule in real estate.
As this is real estate, our TFS Real Estate Consultants will help you sell your property when it comes to the disposition of your property. We will counsel you on all aspects of your transactions & assist you with our 25+ years of 1031 Exchange planning.
Yes, TFS Properties will assist you in this process. It is best to sit down with an Investment Agent & Tax Preparer prior to listing your property in order to maximize the potential of your sale.
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