|
|
|||
|
Flawless Section 1031 Exchanges For Over 27 Years |
|||
|
|
|||
 |
|||
|
REAL-LIFE EXAMPLES OF OUR EXCHANGES |
|||
 One
of Chris’
favorite Exchanges was a simple forward exchange for a campground owner.
This Exchangor sold one large lakefront property and proceeded to use the next
45 days driving up and down the East Coast selecting Replacement Properties. He
was in the enviable position of being able to identify more than three
Replacement Properties (the simple rule). He used the 200% rule (to identify as
many properties as he wanted as long as the total value of the properties
identified did
not exceed twice the value of the Relinquished Property).
In the end, he acquired eleven new properties from Maine to Florida, many of them single family (rental) residences, including two new campgrounds. This Exchange allowed him to diversify his portfolio, generate significant cash flow from his new properties, and pay no capital gains tax. As they say in the business "one happy camper!" If he determines that one or more of his selections doesn’t satisfy his investment objectives, then after a year or two, he can exchange again. [List of examples] |
|||
 We
are currently working with a client to acquire a significant piece of commercial
real estate in New England. The client is in the process of selling six separate
pieces of property in order to aggregate
sufficient funds to
make the new Replacement Property purchase. The client has been extremely
careful (with our guidance) to time his sales and the new purchase all within a
45 day time frame. This is key to the success of the Exchange due to the fact
that he will acquire not just one piece of property, but rather over a dozen
condominiums.
You will recall that you have two basic rules when it comes to identifying your Replacement property choices, the Three-Property Rule and the 200% Rule. This Exchange is an example of yet a third method of identifying Replacement property. It allows the client to acquire an unlimited number of properties and without regard to value as long as the properties are acquired within the 45 day identification period. This can be a little nerve-racking for the investor and it pays to have a back-up plan. In the event something goes wrong with the acquisition, the client will have to hurry to identify other possible choices for each of the Exchanges in process. [List of examples] |
|||
| This is an example of an Exchange that we are currently working on for a client that wants to consolidate its property holdings. Client owns a large number of multi-family properties in an active commercial area with many tenants who are attending a local college. Years of revolving tenants has forced the client to re-think its investment strategy. The client sold 13 of its properties to one buyer and has negotiated to purchase one Replacement Property, a hotel. While the hotel will require a different set of skills, the client gets an investment property that is in one location with just one set of maintenance and management issues. | |||
|
Edmund
&
Wheeler, Inc.
QI |
|
||
|
Edmund and Wheeler is actively involved |
|||
| 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. Real-life examples of Section 1031 Exchanges. | |||
|
Copyright 1995-2008.
Edmund & Wheeler, Inc. all rights
reserved. |
|||
