Swap 'Til You Drop!

By
Real Estate Agent with Long & Foster Real Estate, Inc., Crofton, MD 21114

James BrennanThat advice comes from "inactive" ActiveRainer James Brennan, a 1031 Exchange facilitator I met through LinkedIn.  As an ActiveRain pioneer who joined in 2006, James wrote a lot of good information about 1031 Exchanges during the next year, but he hasn't posted anything since September 2007.  He would probably be very surprised to see our custom blog designs, outside blogs, and many other improvements.

Recently, I sent him a link to the information on my website about 1031 Exchanges and asked if it was up-to-date or needed revising to reflect today's laws on Exchanges.  In his reply, he said that the information needed "more sizzle" and volunteered to provide some. 

Of course, I jumped on that opportunity and invited him to be a Guest Blogger for "Focus on Crofton."

tax return - istockphotoI won't repeat every word here, for the sake of SEO, but please click on Tips for Crofton Investors on Using a 1031 Exchange to read his expert answers to these questions:

  • How can you use a 1031 exchange in this down real estate market?
  • What is a Section 1031 Exchange?
  • What is a Qualified Intermediary and Why Do You Need One?
  • What taxes do you defer with Section 1031?
  • Why do you suggest investors should keep exchanging?
If the idea of a 1031 Exchange scares you, take a few minutes to read James post, 1031 Exchange Basics - FAQ, here on ActiveRain.  Then, for a little "more sizzle" check out the information he sent me, posted today on Focus On Crofton, and find out why he says "Most investors swap 'til they drop!"


The next time someone asks why you "waste so much time on social media" you can tell them it's a great way to meet experts like James Brennan.  Thanks to our connection on LinkedIn, a lot of consumers and other real estate professionals have an opportunity today to learn more about 1031 Exchanges.

 

For more information you can contact James by email at jbrennan@1031esgroup.com or call him at (703)801–4178.   Website:  1031ESGroup.com.

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Posted by

Margaret Woda, Long & Foster Real Estate, Inc.
Military Residential Specialist (MilRES®)
(410) 451-6245    mwoda@mris.com

Margaret Woda

 

Search for homes and explore the pages of MargaretWoda.com at your own pace and convenience for more information about homes, communities, and the home buying or selling process in Maryland.

 

Information contained in this blog post is reliable on the date of publication, but it is subject to change without notice.

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Topic:
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Comments 11 New Comment

Rainmaker
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Rebecca Levinson, Real Estate Marketing and Online Advertising Consultant
Real Skillz-Clear Marketing for Your Real Estate Vision

Margaret- That is fantastic, having him as a guest blogger.  Guest bloggers are a great way to build a more heavy contending content rich blog and engage readers. 

February 04, 2009 11:49 AM
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Cindy Jones
Pentagon, Fort Belvoir & Quantico Real Estate News
CJ Realty Group, Inc.

I've personally done three 1031 exchanges.  I just finished one for a client who was selling property in CA and bought a property in VA.  Once you figure out the rules it is a fairly easy process.

February 04, 2009 07:37 PM
Anonymous #9
Anonymous
James Brennan

Question: "Unless I'm mistaken, it doesn't affect the other party of the transaction in any way. "

Answer:  There are a lot of misconceptions out there that an exchange has to involve a "deed swap" or find a buyer who wants to do a swap himself.  All untrue.  When a seller puts his property on the market he can decide "mid-stream" it is going to be involved in his or her own personal like-kind exchange.  Prior to settlement about 50% of our clients add language to the purchase agreement that the sale will be part of a 1031 exchange.  The NOTICE of assignment addendum in our files does have a place where the buyer attests that the seller is not "taking control of his or her proceeds". This substantiates the seller's case when saying to the IRS, "I complied with the safe harbor and gave my money to a qualified intermediary and did not put it in my own personal bank account along with my savings."  Long-winded answer to your question, but the short version is the buyer is not impacted but kind of resembles a witness in the transaction saying "that guy didn't take a check away from settlement".  Also the Seller's name at settlement should appear ES Group, Qualfied Intermediary for Jane Doe, not just Jane Doe. This again assures the use of the Safe Harbor under the regulations.

February 07, 2009 09:55 AM
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Margaret Woda
Maryland Real Estate & Military Relocation
Long & Foster Real Estate, Inc., Crofton, MD 21114

James - Thank you for answering the question.  In my Exchange transactions, it did not impact the other party in any way other than signing documents at settlement to assure the sellers' proceeds were being properly allocated, as you say.  We have wording in our "standard clauses addendum" that simply informs the other party at the time of contract that this is or may be a 1031 exchange on the part of one party to the contract.

February 07, 2009 10:01 AM
Anonymous #11
Anonymous
Anonymous

Yes, and for local agents an addendum is on "ZipForms"

February 07, 2009 10:29 AM
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Margaret Woda

Maryland Real Estate & Military Relocation
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Additional Information

Real Estate and community information for home buyers and sellers, military transferees, and rookie agents in the greater Crofton area, including Annapolis, Bowie, Davidsonville, Fort Meade, Gambrills, Joint Base Andrews, Millersville, Odenton, and the U.S. Naval Academy.

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Margaret Woda