Our services
1031 Exchanges
The options, regulations, and complexity of a 1031 Exchange can be confusing, stressful, and difficult to execute successfully. But with the right partner, it doesn’t have to be. We’re here to help you determine if a 1031 Exchange is right for you, and to guide you through the process of identifying and securing the most optimal replacement property(s).
Realign your strategy with the financial legacy you want your investments to build.
As life changes, it’s natural for your financial needs and goals to change too. We can help you reassess your investment strategy to ensure it aligns with your current situation and your unique financial goals.
Our team is experienced in helping investors navigate:
The decision to retire from landlording
Threatened financial confidence from changing real estate regulations and tax laws
Wealth preservation and the deferment of capital gains
Opportunities to earn more potential income
Changes around investment goals or income needs
Wealth transfer to beneficiaries
The 1031 Exchange could be the key to realigning your investment strategy with your financial legacy.
The 1031 Exchange tax code creates the potential to sell your current property and roll the proceeds 100% tax deferred into income potential real estate that is professionally managed.
From simply providing you with a greater awareness of all your available options to running a complete cash flow analysis of your current investments and modeling several scenarios, we can help you determine if performing a 1031 Exchange into other property(s) would be beneficial for you.
As your 1031 Exchange partner, our sole focus is your success.
Unless you’re working with a company like ours — with dual Real Estate and Securities licenses, and a proven track record in 1031 Exchanges — you could be exposing yourself to unnecessary risk and missed opportunities:
Tax Liability
You could be required to pay up to 30% in taxes on debt and/or the profits from selling your highly-appreciated investment or agricultural property.
High-Risk Vehicles
In addition to paying taxes on your property sale, you may be stuck investing the remaining proceeds in other investment vehicles that carry increased risks.
Poor Investments
Because of the 45-day identification rule, you could be forced into reinvesting in a property you might regret owning or putting all your money into one investment.
Failed or Stressful Exchanges
The many options, timelines, and regulations surrounding the 1031 Exchange process create a degree of complexity that can be difficult to successfully manage without the right knowledge and experience.
Our Process
Our process, combined with our specialized expertise and high standards for both sponsors and service, ensures we help you avoid mistakes and close on a replacement property(s) that are in total alignment with your investment and lifestyle goals.
1. Tell us your story
We use an extensive new client profile to ensure that we fully understand your short-term and long-term financial goals and needs. We communicate with your other advisors, such as tax professionals or lawyers, to ensure everyone is on the same page about objectives, tax consequences, timelines, and responsibilities.
2. Review your custom proposal of replacement properties
Based on your profile and investment objectives, we refine acquisition targets until your goal properties are found. Our extensive due diligence process results in properties that fit your risk/reward ratio.
3. Close on desired properties
Once your target properties are identified, we handle all of the negotiating and closing processes, helping to navigate any uncertainties of your exchange. Our membership to the 1031 Capital Solutions Strategic Alliance allows us to tap into the operational expertise of a dedicated processing team who will manage the administrative and transactional details of your investment. Every detail is handled by professionals who are deeply engaged in their specific areas of responsibility.
4. Stay in touch
Once you successfully close on your replacement property(s), we stay in regular contact with you as we monitor your investments. We are available to answer your questions about current and future investments.
Our specialty is exchanging into Delaware Statutory Trusts (DSTs) and other passive real estate investment options.
Learn more about the potential benefits of these types of investments →
What can we help you with?
Whatever your situation, we’ll partner closely with you to customize a 1031 Exchange plan tailored to your specific goals and needs.
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You’ve reached a point where you’re tired of landlording and the headaches that come with it. You are considering selling your current property, but assume your only options are to either pay the taxes or buy another property that requires management.
What few investors know is that there are passive options within a 1031 Exchange.
The Legacy team will guide you through the important details of a 1031 Exchange to help determine a suitable option. With your unique needs in mind, we create a proposal and plan to help achieve your investment goals. We make the process seamless and simple by handling all investment paperwork.
With 100% of the property management obligations taken care of by the sponsor company within the various exchange replacement options, your end result could be an investment portfolio with zero management obligations, ever.
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You’re wondering if you're missing out on more income – especially if you’ve been investing for growth instead of income.
If you’d like to know whether or not you are missing an opportunity for higher income potential, we can help.
We can run a cash flow analysis of your current investment and help you model several scenarios to determine if it may give you the best potential income at a suitable risk level. Using this information and our 40+ years of real estate investment experience, we help you determine if a 1031 Exchange into other property(s) would be beneficial.
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It's risky to have all of your eggs in one basket, but the current price of real estate can make it difficult to diversify.
Fractional ownership can often accommodate investment minimums of $100,000. This can make it easier to spread your wealth and diversify across property types, geographies, and management companies.
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The tax liability on the sale of an investment property varies by state and income. No matter where you live though, the hit to your equity can be staggering. In some cases, the sale of an investment property can lead to out-of-pocket expenses, leaving you with no net equity and an additional loss. It’s essential that you talk to your CPA about your tax liability upon the sale of your investment property.
You'd like to potentially defer the tax liability, but aren’t sure what options are available to you.
Our experienced team is aware of 1031 options that many investors and advisors are not. We can help you compare all of your options–– including keeping your current property, paying the taxes, or executing a 1031 Exchange. If you choose to defer the taxes and execute a 1031 exchange, we will seamlessly guide you through the process to ensure all regulations are followed and no taxes are owed.
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There are several circumstances when passing on real estate to beneficiaries can be burdensome or complicated –including If you have more than one heir, your heirs have full time jobs and no time to manage your real estate, or you’re concerned that decisions will have to be made together, which can be hard when involved parties have different needs, goals, and preferences.
We can help you determine a desirable option to facilitate and help streamline your estate planning. There are exchange options where beneficial interests can be bequeathed to different individuals or organizations in varying amounts.
Heirs/Beneficiaries will inherit their prorate share of your DST ownership interests, pursuant to your estate plan. Each beneficiary’s ownership will be entirely separate from the other, eliminating the need for beneficiaries to agree on what to do with the proceeds once you pass away.
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You are retiring from farming and want to generate consistent income potential without unnecessary risk. Like many farmers, you might believe that your only low-management investment property option is NNN investments and are unaware there are other 1031 Exchange strategies that provide management-free options.
Our team is here to guide you through the process and help you reinvest your proceeds into a portfolio of potentially income-producing commercial real estate that may help provide a hedge against inflation and offer you the ability to enjoy retirement while preserving your legacy.
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You need to replace debt in your exchange, but have found that you either don’t qualify for a loan or would need to make an all-cash offer on a property. Without replacing the debt in your exchange, you could end up with a taxable “mortgage boot.”
There are various replacement properties that have non-recourse debt in place, which means an investor can satisfy their loan replacement obligation without going to the bank or filling out an application. A non-recourse loan means the investor is not personally liable for the debt and it does not appear on their balance sheet.
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There are many reasons a deal can fall apart at the last minute – surprises during due diligence, the bank doesn’t come through with the loan, the seller changes their mind. If this happens after day 45 and you don’t have other properties to consider on your id form, then your exchange is failed and taxes are owed.
We have access to replacement properties that can be used as back up options should your primary target property fall out. Our team can help you identify potential options and help you navigate the short 45-day time frame of the identification period.
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It can be almost impossible to find a replacement property that hits the exact numbers of your exchange.
There are various exchange replacement investment strategies that can be flexible in the size of the exchange and can be bought in tandem with other properties that you have purchased, making them a convenient option for leftover cash in your exchange. These investments can also be used to replace mortgage boot.
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You’ve recently retired and found that your need for predictable, consistent monthly income potential is now more important than the appreciation potential of your investments.
It's typical for investors who have steady jobs to care more about growth than income, but once you retire, that can change.
Legacy’s rigorous due diligence process seeks to reveal investment properties that have the greatest potential for cash flow and capital preservation.
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