1031 Exchanges and TIC Offerings explained from the perspective/bias of a Real Estate Broker.

Disclaimer –The following is not to be taken as legal advice. It is not to be taken as accounting advice. Consult your attorney and accountant before entering into any transaction involving the issues and investment vehicles described below.

 Who should contemplate a 1031 Exchange?

Anyone who has investment property they would like to sell but wish to remain invested in real estate. Why give 18% to Uncle Sam and another 5% (California) to the State, if the intent is to purchase another investment property.  A 1031 exchange may be used to accomplish many investment goals of the Exchanger. Clients who wish to defer their capital gains tax, diversify, or consolidate their real estate holdings, increase the leverage on their investment, or even relocate their investment to another market, can achieve these goals using a 1031 exchange.

 Sounds great, What's the Catch?

 With the current market conditions, it is very difficult to find/identify a suitable relpacement property within 45 days.