In addition to tax deferral, the most important component of a 1031 exchange is identifying and buying suitable replacement property. Property types that qualify for a 1031 exchange include office, apartments, retail, land, self-storage, residential rentals, hotels, senior care facilities, medical, restaurants, daycare and educational, industrial, retail, and other business and investment properties. For example, you can sell land and acquire an office building, sell a four-plex and purchase land for development, or sell a warehouse and buy a single tenant retail property; all of which are considered “like-kind” 1031 exchange properties. Get a list of properties by calling 1-800-USA-1031.
Many exchangors sell management intensive properties or land in search of secure monthly income without the headaches of maintenance, day-to-day responsibilities, tenant turnover, maintenance or upkeep. There are three ways to invest your 1031 exchange proceeds to attain passivity in real estate ownership: properties with a Net Lease (NNN), Tenants-in-Common (TIC) properties, and properties in a Delaware Statutory Trust (DST). 1031 Exchange Place has been serving exchangers looking for passive income since 1997 and has access to what we can confidently say is the more comprehensive selection of 1031 exchange properties. Continue reading below or contact us to get access to NNN, DST, TIC properties >>>
With the financial crash of 2007-2008, the number of exchanges diminished and most TIC sponsors either went out of business or turned their attention elsewhere. With the resurgence of 1031 exchanges in recent years, the need for diversification, security, and passive income has motivated real estate companies to offer replacement property to 1031 exchangers. Instead of utilizing the pre-crash TIC form of ownership, sponsors have chosen the Delaware Statutory Trust (DST) structure, which provide similar benefits to TICs.
DST replacement property has many advantages to consider, but DSTs are only available to accredited investors (high net worth or annual income), while our TIC properties are available to non-accredited investors seeking secure monthly income without the ongoing management hassle or expense.