Preserve Equity, Build for the Future Using a 1031 Tax Exchange

Written by Neda Dabestani-Ryba


Continued from page 1
1031 Exchanges are complex mechanisms and like all IRS requirements very specific. For example, exchangers have 45 days from closing to identify properties they intend to purchase and 180 days to completerepparttar purchase. Purchase and Sale agreements must include verbiage indicatingrepparttar 150448 intent to affect a 1031 Exchange. The 45-day time frame used to be onerous for sellers. Now, they can opt for a Reverse Exchange, in which an additional third party called "the exchange accommodation title holder" (EAT) acquires title torepparttar 150449 replacement property untilrepparttar 150450 original property sells. Reverse Exchanges shiftrepparttar 150451 45- and 180-day time frame torepparttar 150452 selling side ofrepparttar 150453 transaction. With an Improvement Exchange, which also uses an EAT to holdrepparttar 150454 replacement property, sellers can build investment properties fromrepparttar 150455 ground up or improve existing properties. The improvements have to be built and paid for duringrepparttar 150456 180-day period. If you are interested in a 1031 Exchange,repparttar 150457 first step is to consult your tax advisors as well as an attorney or CPA who is knowledgeable with 1031 Exchanges. Make sure that your real estate professional knows you plan to conduct an exchange and be sure that he or she is familiar not only withrepparttar 150458 process but also withrepparttar 150459 specific documentation and time frame mandated byrepparttar 150460 IRS. This article is intended to inform readers, but does not constitute any financial or legal advice.



Neda Dabestani-Ryba is a licensed Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: http://neda.dabestani.pcragent.com/ Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity


How to Eliminate Risk in Real Estate Investment

Written by Neda Dabestani-Ryba


Continued from page 1

6. Failing to Have Adequate Insurance - Investment property brings liability. Tenants, cars, parking lots, cleaning facilities, property liability -repparttar list is quite extensive. Adequate insurance coverage is an absolute must! Be sure to consult with an insurance professional and protect your hard earned assets.

7. Inspect, Approve, and Confirm All Documents - The list of documents that need to be proofed can be overwhelming torepparttar 150447 first time investor. Building permits, zoning laws, rental and lease applications, health licenses, laundry leases, underlying loan documents, CC&Rís, by-laws, title policies, mineral leases, inspection reports, purchase contracts, insurance.. donít attempt to do it alone. The right professional can remove most ofrepparttar 150448 stress and bringrepparttar 150449 transaction to a conclusion smoothly.

8. Get a Bill of Sale For All Property Involved - Many types of personal property (appliances, furniture, fixtures, etc.) can be involved in an investment sale. Be very detailed -know who owns what!

9. Charge Fair Rents - Vacancies, turnovers and lease terminators are your biggest expense. Charge fair rents, treat your tenants with respect and respond as quickly as possible to their needs. Itís a lot less costly inrepparttar 150450 long run to take care ofrepparttar 150451 little problems before they become big problems. Vacant property is your Achilles heel.

10. Select Qualified, Good Tenants Fromrepparttar 150452 Start - Takerepparttar 150453 time to check references. Previous landlords, employers, financial references, credit and judgments are all vitally important. If there are any questions do a thorough investigation. Drive by their previous residence. A little work up front can save tremendous problems later.

11. Make Sure You Get Estoppel Letters - Get letters from tenants confirmingrepparttar 150454 status of tenancy. Make sure their version ofrepparttar 150455 rental or lease agreement corresponds withrepparttar 150456 sellers interpretation.

12. Donít Spend Positive Cash Flow - Most of successful investors have free and clear properties. Be sure to re-invest your cash flow back intorepparttar 150457 property payment and speed uprepparttar 150458 amortization schedule. This decreases your debt load and increases your equity which builds your net worth. Investment property can be one ofrepparttar 150459 most rewarding aspects of your financial portfolio. Be certain to have all your ducks in a row before you invest. Do your homework! Consult with a professional real estate agent and protect yourself fromrepparttar 150460 hidden troubles that can plague first time investors.



Neda Dabestani-Ryba is a licensed Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: http://neda.dabestani.pcragent.com/ Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity




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