1031 Tax  Exchanges

 

Sourcenet 1031 Services

"Your Source for 1031 Exchange Property"

Defer Capital Gains Tax

Own Investment Grade, Net Income Property

Put a Nationally Known Real Estate Expert to Work for You

Since 1981, real estate investors have looked to us for knowledgeable advice and quality real estate investments

Funds formerly lost to taxation remain with the taxpayer earning potential returns 

          Check the Selection of  Qualified 1031 Exchange Properties by contacting us here

Sourcenet 1031 provides 1031 Exchangers with:

  • Net Income and Multi Family Properties
  • Multiple Properties in the same Exchange
  • Expert supervision of the exchange process
  • Financial counseling
  • Non-Recourse debt available on some offerings.
  • Closing Costs usually paid by the sponsor; not the investor
  • Property diversification
  • Multiple properties within a single exchange
  • A sophisticated Adviser working for you.

1031 Exchange Overview

 Section 1031 of the Internal Revenue Code provides tax advantages to sellers of appreciated investment properties.

  • Protection from capital gains tax on property sale proceeds.
  • Protection from depreciation recapture tax.
  • Indefinite protection from tax through subsequent exchanges.
  • Multiple proprties may be purchased from sale proceeds.
  • Different type properties are allowed ( must retain investment status).
  • Heirs may receive favorable step up basis.

Section 1031 Allows  Percentage Ownership in Larger Properties through Securitization. 

  • Percentage ownership allow exchangers to own a portion of an institutional grade property
  • Securitization allows ownership in higher quality properties than might otherwise be possible.
  • Typical properties are large Class A Apartment Communities, NNN Retail Centers, Grocery Plazas and other large , stable, properties.
  • Investors may spread their funds among different properties within one exchange.
  • Percentage ownership allows investors to allocate their investment amounts in each property.
  • Percentage ownership allows geographical and property type diversification.

Securitization means the properties are offered to investors as a security   properly adhering to SEC and FINRA requirements including proper registration of the representative.

  • Securitized properties provide investors with a Private Placement Memorandum. (PPM)
  • PPMs provide investors with comprehensive information and disclosures much more extensive than typical real estate offerings.
  • Material facts on the property are required to be disclosed.
  • Property Sponsors must disclose known negative material facts.
  • Registered Representatives are under the jurisdiction of FINRA and The SEC.
  • Third party due diligence is required on 1031 Replacement Property Offerings offered through Sourcenet Investment Services LLC.

Section 1031 Exchange real estate investments have risks. Investors should remember that there are always risks involved in real estate investing. The securitization process disclosure does not certify quality or investment worthiness or that risks have been removed. The 1031 Exchange process does not remove those risks. Real estate investment risks include: rent loss, area degradation, under-insured casualty loss, building obsolescence, area competition from new developments, loss of capital, loss liability and many other factors. Investors should also consult their tax professional advisors and consider all risks before investing. Real estate investors may lose their investment.

 Using a 1031 Exchange may easily be one of the best moves a property owner could make.  Partnering with Sourcenet 1031 can make your good decision even better.

 Contact Sourcenet 1031 today.

  We would like to earn your business.