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A 1031 Exchange Extension has Finally Been Granted

IRS EXTENDS 1031 EXCHANGE PERIOD April 1st and July 15th, If you’re in a 1031 Exchange, don’t forget these dates. Recently the IRS offered property owners in the middle of their 1031 exchange some much-needed relief with the release of Notice 2020-23. Under this notice, the IRS granted automatic extensions to: • Anyone that sold (relinquished) property with their 45-day…

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NNN Leases Explained

Written by Rusty Tweed   Many of you have heard the term “Triple Net Lease” but I’ve found a lot of people don’t fully understand what that means. First of all many of you have owned and managed your own rental properties, mostly apartments and rental homes. In that market, you have short term leases, higher turnover and you as…

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Is It Time for Your Next 1031 Exchange?

Written by Rusty Tweed   Savvy real estate investors have long used periodic 1031 exchanges to maintain leverage, increase income and equity, and eventually divest themselves of “tenants, toilets, and termites” by exchanging into professionally managed properties.  What Does 1031 Refer To? 1031 refers to Section 1031 of the U.S. Internal Revenue Code, which allows real estate owners to exchange…

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Interest Rates and Cap Rates

Written by Rusty Tweed   The overall interest rate environment definitely affects Cap Rates as well as the type of property, the credit standing of the tenant and the geographical area of your income property. In other articles, I’ve discussed most of these issues, but the one we haven’t looked at is how interest rates affect Cap Rates. First of…

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Cap Rates and Risk

Written by Rusty Tweed   Once an investor understands what a Cap Rate is and how to calculate it, he can then use it to compare properties and the risks involved. Generally, the higher the risk, the higher the return, in this case, the higher the Cap Rate. We see many investors “chasing income” and going for the highest cash…

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