Investment in Property

Investment, multiple qualified property owners come together to purchase a large, institutional-grade property not as limited partners, but as individual owners. Each co-owner willing to assume the inherent risks and expenses associated with real estate investments, including the fluctuations in the real estate market, receives an individual deed at closing for his or her own undivided fractional interest in the entire tenants in common property. Each 1031 exchange tenants in common property owner has all of the same rights as a single owner and shares the proportionate share of risk, as well as net income or losses, tax benefits, and growth or loss of market value with other 1031 exchange-tenants in common investors. Tenants in common investors in a given multi-tenants industrial complex, for instance, would share in the ownership of the entire triple net lease property, not just one or more specific tenants' spaces. An exchange into tenants in common property allows a qualified real estate investor to defer capital gains taxes in accordance with tenants in common requirements. Complete details of investment requirements, including risks and expenses, are disclosed in the individual property's Offering Memorandum. Please read it carefully before considering investing.

1031 exchange is the most common method for enabling the sale of your commercial property in order to reinvest in another commercial property or multiple commercial properties, deferring all federal and most state capital gains taxes. This transaction is authorized by the IRS and is one of the best options for property investors to rollover their investment commercial properties while preserving as much wealth as possible. 1031 exchanges, structured as tenants in common, provide property investors a range of opportunities to meet personal investment objectives. This includes commercial property type and geographic diversification, and most importantly, the elimination of day-to-day commercial property management obligations. This is simply a method by which a real property owner disposes of one property and acquires another without having to pay any capital gains tax on the transaction. In an ordinary sale transaction, the property owner is taxed on any gain realized by the sale of the property. In an exchange, the tax on the exchange is deferred indefinitely. Investment property sold in any state can be designated as a 1031 tax exchange candidate in the sales contract. This must be stated in the initial sales contract. Any investment property can then be used as a tax deferred exchange vehicle to buy investment property. It does not matter who purchases your property or what they intend to do with it. You must, however, decide what property is to be exchanged within 45 days after you sign the sales contract. The entire transaction must be completed within 180 days. Funds must be held in an escrow account with an exchange agent until the sale is completed.



Many owners of investment and business real estate, or other business personal property, are often not aware of the opportunity to thousands of dollars in capital gains taxes by exchanging their equity from a sale of their investment property into another. Section 1031 of the Internal Revenue Code provides that the federal capital gains taxes are deferred when business or investment real estate is exchanged into a "like kind" property. 1031 exchanges offer impressive wealth-building opportunities because of the ability to defer taxes. Many investors fail to take advantage of 1031 investments because of limited knowledge, poor advice, or lack of appropriate replacement properties. The key to a successful exchange begins by working with experts who understand the 1031 exchange process and who have access to a wide selection of available replacement properties.

One without the other may put an investor in jeopardy of a failed exchange or, worse, a bad investment. TM 1031 Exchange Inc. can be your gateway to the 1031 exchange and real estate acumen and wide selection of replacement properties that are critical to successful 1031 exchange. The TM 1031 Exchange Inc. national inventory of properties is carefully selected to provide the investor with the greatest chance of a successful 1031 exchange. The hallmark of a good 1031 exchange replacement property is a high certainty of close, transparency, offered at a fair market price. Each year billions of dollars are lost due to unsuccessful exchanges, largely because of a failure to identify the appropriate replacement property in the allotted amount of time. 1031 permits real estate owners to exchange a property and defer capital gains tax by selling their investment, rental or business real estate - as long as they reinvest the proceeds into a qualified replacement property. The replacement property must be similar in nature to be used for investment, rental, or business and, therefore, considered "like-kind." To fulfill 1031 exchange requirements, sellers have a maximum of 180 calendar days from the closing of the initial sale of the relinquished property to complete the exchange into the replacement properties. Within the first 45 days of after the close, a seller must designate replacement properties and properly identify them in compliance with IRS regulations. This most frequently is done by using a Qualified Intermediary also known as an Exchange Facilitator. TM 1031 Exchange Inc. provides both the knowledge and available properties to maximize your chance of success when contemplating a 1031 exchange.