How Can I Structure My 1031 Exchange?
For both new and even experienced investors, handling and structuring a 1031 Exchange can seem daunting. But at Coakley Realty, our experts are devoted to helping you learn the simplest, most effective ways of getting it all taken care of. Today, we’ll go over the ways to best structure your exchange in order to maximize your protection and potential growth!
Coakley Realty has been your partner in real solutions and services for years. Each and every member of our team is a devoted specialist, boasting years of experience and extensive knowledge of realty and modern markets. When it comes to your 1031 Exchange, no one can help like our team.
Need help structuring your 1031 Exchange in Maryland, or looking for sound advice and guidance? Contact Coakley Realty today!
Structuring Your 1031 Exchange
There are many avenues to take when structuring your 1031 Exchange, and which method suits you best is going to depend on a variety of factors. This is why we typically recommend that you work with an expert. Professionals carry years of experience, and can help you identify the option that will provide you with the most overall benefits.
Standard or “Delayed” Exchange
A Delayed Exchange is the most commonly sought and simplest of 1031 structures. In this system, the Exchangor (you) relinquishes the property first, and then later acquires a replacement. Put simpler, your current property will be closed first, and then the wanted property is gained within a short, stipulated delay.
An Improvement Exchange operates much in the same way as a traditional Delayed Exchange, with one major difference: the investor may utilize excess funds in order to improve or update the replacement property before its acquisition. This option allows the investor the opportunity to customize the replacement property, and is another very popular structure type.
Personal Property Exchange
Personal Property Exchange (PPE_=) is simply a lesser known but equally important type of exchange. In this structure personal property that is not real estate is utilized. These properties can vary considerably, including but not limited to tangibles like livestock, art, or aircraft, and also intangibles such as copyrights and business licenses. In a PPE, these assets are exchanged for assets of the same type.
These operate, again, quite similarly to a Delayed exchange, except, of course, without the delay. In a Simultaneous Exchange, the relinquished property is closed at the same time as the gained property.
Reverse Exchange allows the investor to acquire and close on the replacement property before the sale of the relinquished property. This is a fairly uncommon structure, and can be somewhat risky without the assistance of a qualified arbiter. It is important to note that the investor cannot under any circumstance hold both properties simultaneously.
Need help learning more about 1031 Exchanges, or looking for professional assistance in structuring yours? Connect with the experienced agents at Coakley Realty in Maryland!
FIND THE PROPERTY YOU NEED.PROPERTY SEARCH
CONTACT US TODAY
Featured Real Estate Listings
Residential 5937 AVON DR,
BETHESDA, MD 20814
New Price, Great Value!! SPECTACULAR renovated & expanded home features Vaulted Ceilings, Hrwd Floors, Updated Kitchen& Baths, Arched Doorways and Open Floor plan. Fully fin on both levels enjoy elegant dining room, spacious family room that opens to patio, 5 bedrooms, 3.5 baths, (2 master bdrms) rec room, library, gym & MORE!!VIEW LISTING
Residential 24 COURTHOUSE SQ #107,
ROCKVILLE, MD 20850
Wow! Rarely available first floor unit (located on the second level) with over sized open patio! Great for entertaining or relaxing. This is a must see. Patio overlooks bustling downtown Rockville. This great one bedroom one den unit with parking has been freshly painted throughout and is ready to move right in. Parking included with the price.VIEW LISTING
Residential 8421 CRIMSON LEAF COURT,
POTOMAC, MD 20854
Set on a stunning lot in the beautiful Avenel neighborhood, this three-story house is the perfect place to call home. Want to learn more about our featured listing in Potomac? Call 301-637-0966 to speak with an expert at Coakley Realty or take a virtual tour and see it for yourself!VIEW LISTING