Impact Realty Advisors

A 1031 Exchange is a transaction that allows a taxpayer to sell one property and purchase another property without a current tax consequence because the gain is deferred to a later time. This can be accomplished by a simultaneous or delayed 1031 Exchange. The transaction is authorized by Section 1031 of the Internal Revenue Service Code. It is the best strategy for the deferral of capital gains tax that would ordinarily arise from the sale of real estate. A successful exchange results in the taxpayer being able to utilize 100% of the proceeds from the sale of the property, thereby deferring capital gains taxes.

Why Impact Realty Advisors, LLC is the perfect 1031 Exchange vehicle:

• You receive an agreed upon amount for the duration of the lease.
• No management. Impact Realty manages your property. There is no fee to you for that - it is part of the lease agreement.
• Predictable cash flow. You will know exactly what your cash flow will be.
• Leverage. Single-family houses offer the greatest loan to value on mortgages and thus the greatest opportunity to leverage a real estate investment. Many clients borrow up to 90% of the purchase price of the new property/properties using their 1031 proceeds.
• Liquidity. Single-family houses are the most liquid of real estate investments. There is always a demand. Some 1031 Exchange brokers encourage their clients to purchase TICs. A TIC is an acronym for "Tenants in Common". By purchasing a TIC you would own an ownership portion of a commercial building. The biggest problem with a TIC is that it is not liquid. Trying to sell a TIC is like trying to sell a timeshare - there is no secondary market so consequently if you want out you will in all likelihood take a significant loss. Single-family houses on the other hand, have demonstrated steady appreciation of value over time and a constant market for resellers.
• You are in control. You can sell your house(s) and cancel the lease(s). You can sell your house(s) and have another investor assume the duration of the lease(s). Or you cancel the lease(s) and keep the house(s). You are in complete control.
• Guidance in the 1031 Exchange process. The staff of Impact Realty Advisors, LLC will guide you through all of the intricacies of the exchange and will provide you with an independent "Qualified Intermediary" to assure that the tax deferral is achieved.
• A great return. Houses currently offered for sale on our website would produce a 9.1% return if paid for in cash. If leveraged, with current interest rates, the cash on cash return would be in the 13-14% range. This of course does not include equity build-up on financed properties, tax savings or potential appreciation. Click here for a description of properties currently offered.

Impact Realty Advisors, LLC truly offers the perfect 1031 Exchange Vehicle!