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Maximize Your Real Estate Investments: Harnessing the Power of 1031 Exchanges with Perch Wealth

Ben Carmona
April 3, 2024

Understanding the Basics of 1031 Exchanges
A 1031 exchange allows real estate investors to defer capital gains taxes when they exchange one investment property for another. This tool is essential for portfolio growth and diversification.

The Pillars of a Successful 1031 Exchange with Perch Wealth

Property Criteria: The exchanged properties must be of like-kind and used for business or investment purposes.
Strict Timelines: Identify the replacement property within 45 days and close the exchange within 180 days.
Involvement of a Qualified Intermediary: Essential for ensuring a smooth and compliant exchange process.

Expanding Opportunities with Perch Wealth
Perch Wealth opens doors to diversified investment opportunities, including access to Delaware Statutory Trusts (DSTs), which offer a management-free approach to real estate investing. This diversifies your portfolio while still adhering to 1031 exchange regulations.

Navigating 1031 Exchanges with Perch Wealth’s Expertise

Initial Planning: Assess current property values and investment goals.
Finding a Qualified Intermediary: Facilitated by Perch Wealth, ensuring expertise and reliability.
Identifying Replacement Properties: Perch Wealth provides access to a wide range of properties, simplifying the identification process.
Completing the Exchange: Guided by Perch Wealth to ensure compliance within the set timelines.

Advanced Strategies for Seasoned Investors
Explore reverse exchanges or improvement exchanges, where Perch Wealth’s experience and resources play a crucial role in ensuring success.

Frequently Asked Questions

What makes a property ‘like-kind’ in a 1031 exchange?
Are international properties eligible for 1031 exchanges?
What are the risks associated with 1031 exchanges?

Leveraging 1031 exchanges with Perch Wealth’s array of services like DST investments and opportunity zones, investors can achieve significant growth in their real estate portfolios. By understanding the requirements and tapping into Perch Wealth’s resources, your investment journey can reach new heights.

Contact Perch Wealth for Tailored Investment Strategies
For more detailed strategies and a personalized investment approach, reach out to Perch Wealth. They are committed to guiding you through every step of your 1031 exchange process, offering a unique blend of services to meet your investment needs.

1031 Risk Disclosure:

There is no guarantee that any strategy will be successful or achieve investment objectives;
Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
Potential for foreclosure – All financed real estate investments have potential for foreclosure;
Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits

General Disclosure

Not an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only. Securities offered through Arkadios Capital, member FINRA/SIPC. Advisory Services offered through Arkadios Wealth. Perch Wealth and Arkadios are not affiliated through any ownership.

Ben Carmona

Ben Carmona is a Managing Partner at Perch Wealth. With over 20 years of applied experience, Ben is an expert in real estate investments, structures, and strategies.

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Not an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only. Securities offered through Arkadios Capital, member FINRA/SIPC. Advisory Services offered through Arkadios Wealth. Perch Wealth and Arkadios are not affiliated through any ownership.

Check the background of this firm/advisor on FINRA’s BrokerCheck.

Real Estate / 1031 Risk Disclosure:

There’s no guarantee any strategy will be successful or achieve investment objectives;
All real estate investments have the potential to lose value during the life of the investments;
The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
All financed real estate investments have potential for foreclosure;
These 1031 exchanges are offered through private placement offerings and are illiquid securities. There is no secondary market for these investments;
If a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits;
Tax benefits are not guaranteed and are subject to changes in the tax code.