Your Source for Net Income 1031 Exchange Property

Selling Investment Property?  Learn how to avoid the tax!

1031 Tax Exchanges

  • Defer immediate Capital Gains Tax on property sale proceeds
  • Prevent your past depreciation from being recaptured upon your sale
  • Exchange into "investment grade" , "net income property"
  • Put a nationally known real estate advisor 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 you, the taxpayer,  earning potential returns

Sourcenet 1031 provides 1031 Exchangers with:

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

1031 Exchange Overview

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

  • Protection from depreciation recapture tax.
  • Multiple proprties may be purchased from sale proceeds.
  • Different type properties are allowed (must retain investment status).
  • Indefinite protection from tax through subsequent exchanges.
  • 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.

We believe, 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.

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. Diversification does not guarantee profits or gurantee protection against losses. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. This is not to be interpreted as tax or legal advice.