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Flawless Section 1031 Exchanges For Over 27 Years |
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ABOUT EDMUND & WHEELER
Edmund & Wheeler, Inc., had its beginnings as a sideline to a real
estate business being run by its founder George Foss.
 Prior to entering the real estate profession in 1971, George Foss had
been employed in the defense industry in Greater Boston, worked 5
years for MITRE, and 4 years for EG&G as an electrical engineer, a
systems engineer and as an applications engineer. The untimely
death of a close friend brought him to the realization that "life
is short" and thus brought about a move to Northern New England
for a career change into real estate.
Real Estate, for someone with an active, inquiring mind, can be a bit
dull at times and so, for reasons of personal stimulation, George
began to add complexity to otherwise simple transactions, thinking of
tax twists, creative finance and such, added to deals to give the
client more security or better cash flow. These took close
collaboration with the client and his advisors, and developing
the ability to listen to the client's goals and objectives and being
able to translate these into the business terms of a real estate
transaction.
No deal was too complex for George, who, for example, in 1976,
brokered 500 acres of land containing two lakes, themselves headwaters
of two rivers flowing in opposite directions, to the US Forest Service
for inclusion into the White Mountain National Forest. The USFS
had never used the 500 acre allocation awarded it by Congress in 1931,
when the WMNF was established, but the parcel in question was a
critical acquisition. Three conservation groups (Nature
Conservancy, Appalachian Mountain Club, Society for the Protection of
New Hampshire Forests) were involved, as well as Mary Hitchcock
Memorial Hospital, which held the financing for the owners of the
property, and had to be induced to discount the outstanding debt
by 25%. The local community had to vote in favor of the tract
coming off the tax rolls, as did the Governor and Executive Council of
New Hampshire. The sale of the head of Crawford Notch, New
Hampshire closed successfully in 1976.
What is now Section 1031 of the United States Tax Code was passed into
law on March 8, 1921. By 1977, this provision, virtually
untouched by lawmakers since its passage, was 56 years old. What
brought it to George's attention was its passing mention in a real
estate reference book he had borrowed from an attorney.
Resolving to look into this further, George found a 3 day seminar
being given on the topic that year, another in 1979, and attended
both. But it would not be until the spring of 1981 that George
was able to successfully orchestrate his first exchange. This
involved the following players:
Bill, who had a house for sale;
Mary, who wanted to sell her house and purchase Bill's house;
Jane, who wanted to buy a 3rd house (not presently for sale) owned by
George; and
George himself, who besides owning the house desired by Jane was also
Bill and Mary's exclusive Realtor.
By causing Jane to buy Mary's house first, George earned a commission
from Mary. Then Mary bought Bill's house and thus, George earned
a second commission from Bill. Then George exchanged houses with Jane,
giving her the house she really wanted and paying George the $22,000
difference in values between his house and Jane's (formerly Mary's)
house.
In effect, George moved his rental property about four miles northeast and in the process, picked up new tenants, who ended up staying 10 years. So, with this transaction, several lessons are learned, none of which were lost on George. |
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HOW MAY WE HELP? |
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| > | View educational videos. | |
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| > | Review our Scope of Services. | |
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CASE STUDIES |
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WHAT QUALIFIES? |
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Use this tool to quickly determine if your situation can qualify for an exchange.
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WE WILL TRAIN YOU |
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| > | Tools for Professionals | |
| > | Tools for Individuals | |
| > | Arrange for a Section 1031 Seminar or Webinar | |
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Note that just by George
agreeing to put a not-for-sale property into play, what economic
activity followed. Jane got the house she wanted from George,
and George still had his rental, just 4 miles away. But Jane
renovated George's house, creating work for a contractor.
And both Mary and Bill moved, creating business for the moving
companies. And Bill got money out of his house, which he spent
wherever, money that came through Mary's hands and originated with
Jane. Finally, George's business received 2 commissions
and George personally received the $22,000 excess value money.
With this one transaction and the lessons he learned from it, George
resolved then and there to become a specialist in Section 1031 and to
be the best one in the field. Exchanges became a division in his
real estate firm and from 1981 forward, he and his staff would ask all
potential buyers and sellers if an exchange could work in their
situation.
For the next 10 years, until 1991, George's real estate firm conducted
dozens of exchanges, sometimes for his own clients, other times for
accountants and attorneys whose clients needed assistance.
Because money could not be used in the context of an exchange until
May 1991, it was necessary, as above with Jane, to ask the party to
acquire property they did not want in order to exchange it with the
owner of the property they did want.
During this 10 year period, George took extensive coursework in
Section 1031 and in April of 1989, he earned the designation CEC
(Certified Exchange Consultant) from the Academy of Real Estate
in San Jose, California. Later that year, he taught his first
seminar. Delivered only 15 times, this 6 hour seminar, entitled "Exchange
Mechanics and Case Studies" was licensed by the states of Maine
and Vermont for their real estate Continuing Education program.
In 1991, in response to repeated requests, the IRS adopted new Regulations permitting money (instead of property) to be used in an exchange, provided all funds were held apart and away from the Taxpayer by a Qualified Intermediary.
So, across the country, persons such as George who had been serving as
consultants on the mechanics and proper execution of Like-Kind
Exchanges, converted to Escrow Agents holding the proceeds of property
sold by the Taxpayer, later delivering such proceeds into the hands of
the owner of property desired by the Taxpayer.
By 1995 it was evident that a sole business doing only exchanges could
prosper, provided that a large territory was covered. George sold
his real estate firm that year, and established Edmund &
Wheeler, Inc., with Phyllis Grima becoming his Office Manager in
2000. New York and New England were targeted initially, but soon
this service was provided on a nationwide basis. As of 2008,
Edmund and Wheeler, Inc., has conducted business in 47 states from its
location in northern New Hampshire.
In 2002, Christine Latulip, past President of Peoples National
Bank of Littleton, joined EWI as Vice-President and in 2004, the
office moved to its current location in Littleton, NH..Christine
earned her CES (Certified Exchange Specialist) designation from the
Federation of Exchange Accomodators in 2005, and in 2007, John Hamrick
joined the firm as Marketing Manager and Director of Development.
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Edmund &
Wheeler,
Inc.
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Edmund and Wheeler is actively involved |
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| Edmund & Wheeler, Inc. headquartered in Littleton, New Hampshire (NH) is a Section 1031 Qualified Intermediary with over 27 years of experience. Edmund & Wheeler has completed thousands of successful exchanges in 47 states. George E. Foss III and Christine S. Latulip are the firm's principals bringing with them decades of experience in finance, tax issues, banking, real estate and most importantly are proven experts in all things Section 1031. This site contains real-life examples of successful exchanges, industry insight, detailed case studies of exchanges, Section 1031 news and other related materials. George Foss III started Edmund & Wheeler in 1981 and has done Section 1031 exchanges since that time. | ||
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Copyright 1995-2008.
Edmund & Wheeler, Inc. all rights
reserved. |
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