WHAT IS A 1031 LIKE-KIND EXCHANGE? For those not familiar with the 1031 Exchanges, it is a method to exchange business-use property or investment (usually rental) property for one of equal or greater value, deferring any capital gain taxes until the final property is sold and no more exchanges are done. This is NOT for use in primary residences. Trading up with no immediate tax bill (it comes due eventually) is very attractive for many investors.

For example, the most common type of 1031 property in New Bern is single family homes or condos bought as rental property, then traded up for one or more after the equity matures.

BOB'S TIP: You should always discuss your personal situation with your accountant or financial advisor to see if a particular investment is right for you.

Officially, a 1031 tax-deferred exchange is "a method by which a property owner trades one or more relinquished properties for one or more replacement properties of "like-kind", while deferring the payment of federal income taxes and some state taxes on the transaction."

TENANCY-in-COMMON EXCHANGES (also, Tenant-in-Common Exchange)

One option for real estate investors to reinvest their 1031 exchange equity is to put it into a particular type of shared investment property interest called Tenancy-in-Common (TIC). TIC property owners actually hold an "undivided fractional ownership interest in investment property evidenced by a deed of trust".

TIC is also known as Co-ownership of Real Estate or CORE, and enables a real estate investor to participate in the ownership of professionally managed, institutional quality properties. The investor can diversify his or her equity among several distinct properties, realty firms, and even across multiple geographical locations.

Although TIC deals offer individual investors the opportunity to pool funds, secure more financing, and take on ownership interests without the issues of being property managers, they can be extremely complex transactions to buy, manage and sell.

While less common in New Bern, TIC investments can still be an opportunity here, such as multi-family apartment buildings, duplexes, triplexes and the like.

EXPERIENCED 1031 and INVESTMENT REALTOR IN NEW BERN

As rewarding as the 1031 and TIC Exchanges can be for the investor in building wealth, the process that has to be followed is very strict and can be complicated, due to the short timeframes involved to identify the new property(ties) to exchange once the current property(ties) is sold.

Therefore, it is important to have the best realtor working with you, who not only knows the market for investment property (where to buy, how much to sell, how much to rent for), but who also knows the ropes with these type of exchanges and can shepherd your transactions through with speed and diligence, in dealing with buyer, seller, intermediary, attorneys and the many other inspectors and services involved.

As an experienced 1031 Exchange investor and New Bern real estate developer himself, Bob Bartram has years of specialized expertise in helping his investor clients buy and sell their investment properties by smoothly orchestrating all the transactions.

He's handled out-of-state clients who are merely looking for a new place to invest, as well as relocating investors who wish to switch out their investments in other locations to their new home town of New Bern. Additionally, investors looking to sell their properties in New Bern find an experienced realtor in Bob.

Any way you want it, Bob Bartram can help you make it happen.

For immediate consultation on buying or selling investment property in New Bern, North Carolina, call Bob Bartram at (252) 636-7313 today.

REAL ESTATE INVESTMENTS IN NEW BERN NORTH CAROLINA

1031 EXCHANGES IN NEW BERN