1031 EXCHANGE-DEFER CAPITAL GAINS
Jul 20, 2017
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REAL ESTATE-1031 EXCHANGE PROPERTIES-DEFER CAPITAL GAINES
BUYERS ARE BEING CONFRONTED WITH A DEMAND ON EXCHANGE PROPERTIES AND ARE FINDING IT HARD TO PAY 15-18 TIMES INCOME THESE DAYS. BUT NOT TO WORRY. THE FUNDAMENTAL ARE THERE. STICK TO THEM.
1) LEASES SHOWING YEARLY INCREASES ALWAYS MAKES YOUR PROPERTY VALUE GO UP.
2) IF YOU ARE GOING TO ATTAIN ANY AMOUNT OF MORTGAGE YOU WILL NEVER EVER FIND MORTGAGE RATES THIS LOW AGAIN.
3) IF YOU CAN AT LEAST ATTAIN A 5% OR BETTER CAP RETURN YOU ARE AHEAD OF THE GAME.
4) DO NOT PASS UP PROPERTIES THAT YOU ONLY WANT TO PAY 14 TIMES OR LOWER PURCHASE PRICES. ADJUST YOUR THINKING WITH THE TIMES AND DEMAND. IN SOME CASES IF YOU PAY 15 OR 15.5 OR EVEN 16 TIMES YEARLY INCOME CONSIDER IT STRONGLY ESPECIALLY IF LEASES IN FORCE ARE GIVING YOU RENT INCREASES WITHIN 12 MONTHS.
*Conclusion-There are some good deals out there, in many areas. Keep an open mind, check what is available and confer with your Real Estate Broker. Some Brokers like myself do not place listings on Multiple listing services. And the reason why is I am in business 38 years and work with Sellers at discounted commission if they price the property at current market values. After appraising over 3,000 properties to date, I like to price it where it sells quickly even though I may reduce my commission dramatically. It gives the buyer a better deal and the owner/seller feels that my services are worth while for the rate I charge.
I place my listings on Craigslist,NY. The less expenses I have I can pass along commission savings to the seller and buyer.