Land will always remain a limited resource. That’s one reason the value of real estate typically appreciates over time, making it a favorite among many investors. Not all property investment opportunities are created equal, however. Consider just three of the many factors that can greatly affect the return on a real estate investment:
1031 Flexibility: Sell One Property Type, Invest in Something Completely Different
The flexibility of being able to invest in different types of properties extends to 1031 exchanges, which is one of the factors that makes these opportunities so exciting. An IRS requirement that the relinquished and new investment properties be “like-kind” can be confusing. Some might think it means that if you sell your interest in, say, a movie theater complex, that you must invest in another movie theater complex to meet the “like-kind” requirement. That’s not the case. Most investment properties are “like-kind” to others. Here are a few examples out of the virtually limitless possibilities for a commercial real estate exchange:
What is NOT “like-kind”? Assets that belong to different classes. For instance, cashing in real estate profits to invest in artwork or a coin collection would not qualify as a 1031 exchange. Also, properties that are not within the U.S. do not qualify — nor do properties that are for purely personal use, such as your home.
Explore 1031 Opportunities With Precision Global Corporation
At Precision Global Corporation, we are partners with investors — our investment is on the line with yours, so we are motivated to succeed.
Our current projects reflect our preference for assisted living communities, an area in which we believe demand is presenting fantastic opportunities.
Whether you are an individual investor, a corporation, a partnership or any other taxpaying entity, you can take advantage of these intriguing 1031 real estate exchange opportunities. Contact us today to learn more.