1. A 1031 Exchange Leverages Your Money! When you use a 1031 Exchange to sell your relinquished property and buy replacement property you have more buying power because the money you would have paid in capital gains taxes to the federal government stays with you and is reinvested in your replacement property. This enables you to purchase more property and more valuable properties than you could if you paid the tax liability and then reinvested the remainder. The tax saving is immediately available as additional equity to reinvest, making you a more solid buyer and helping you obtain financing more easily

2. Exchanging Increases Your Net Worth! You can use the advantages of Section 1031 an unlimited number of times! This pyramiding effect builds your net worth more rapidly because you use tax deferred income to accumulate wealth. And deferred capital gains tax liability is forgiven upon the death of the investor as the heirs receive a stepped up basis in the inherited property.

3. Exchanged Property is Easier to Sell! You will have greater selling power with a 1031 Exchange because you do not have to inflate the sales price to cover the capital gains that would normally be due upon the sale of investment property. You can be more flexible with the selling price since all of your profit will be reinvested.

4. Increases Your Flexibility! You can acquire replacement property with greater income potential. You can sell raw land and acquire income producing property, or acquire a building with additional units or property in an easier to rent location. With a 1031 Exchange you have the opportunity to consolidate several hard to manage properties in one easy to manage property or diversify several small properties into one large property. It provides an excellent opportunity to relocate or expand a current business or investment.

Investment Goals You Can Achieve with a 1031 Exchange:

• Estate preservation.
• Increased buying power because of greater cash flow
• Increased selling power because the federal capital gain tax liability is deferred
• Increased income (more rental units, higher rental income per unit, lower operating expenses, easier to rent location, etc.)
• The need or desire to relocate a business or investment property
• Exchange for property that requires less management
• Exchange for property that is easier to finance
• Consolidate smaller properties into a larger property
• Diversify a large property into several smaller properties
• The need or desire to expand a business into a larger space
• The ability to create pyramiding wealth accumulation in real estate ownership