WHY 1031 EXCHANGE?

The 1031 Exchange process is gaining popularity nationally as more and more Americans are beginning to realize the various reasons why exchanging is a smart choice. Regardless of the reason you have for conducting a 1031 Exchange, contact AFC now for consultation regarding your own unique investment objectives. Here are some of the typical reasons our customers exchange.

Diversifying Investments

By carrying out a 1031 Exchange, an investor has the opportunity to diversify his or her investments regionally and characteristically. An apartment building in Los Angeles can be exchanged for a condo in Portland, Oregon and a small shopping strip in New York, New York. 

 Estate Planning 

A common problem among family members inheriting a large piece of real estate, is agreeing on what to do with the property. A 1031 Exchange provides family members the opportunity to acquire several properties in exchange for one large property. Each family member can thus choose his or her investment objective without having to deal with conflicting financial opinions. 

Maintaining Equity

One of the more obvious reasons for exchanging is maintaining profits gained from the appreciation of an investment. A properly executed exchange offers investors the opportunity to hold onto their equity without being subject to heavy capital gains taxes, which can get up to 25% in several states.

Management  

Over the years, active investors may amass several diversified investment properties. Managing and maintaining this group of properties can be difficult to deal with but can be avoided through a 1031 Exchange. For example, a far reaching group of properties can be exchanged for a single apartment building with an onsite manager.

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