Investing in Real Estate

There are many many options for investing in real estate.
I help clients find properties to fix-n-flip, invest in buy-and-hold properties to rent out, and educate about other opportunities available with real estate.
Contact me today for more details! elizabeth.boese@coloradohomes.com

GETTING STARTED

A lot of people struggle with taking the first step into investment properties.
Let's meet up for coffee and I can talk through what I did and options available to you!

HOW?

There are many options to help you with whatever your project is! Whether you lack good credit, debt-to-income is too high, or even lost your job - there are creative ways to think outside the box to help you get going with real estate investments.
Contact me today for more details! elizabeth.boese@coloradohomes.com

THE 1031 EXCHANGE

A 1031 exchange is named after the government form 1031 which enables an investor to reinvest the proceeds of the sale of a property into a new property and defer any capital gains from the sale. There are a lot of complicated things that go on for a 1031 exchange so it is best to reference an expert in these types of deals (ask me for a list of highly recommended companies in the area).

Essentially there are 9 steps for a 1031 exchange.

  1. Identify a qualified intermediary you will use to handle the 1030 proceeds
  2. List your property
  3. The capital gains of the sale go to a qualified intermediary
  4. Identify a like-kind property within 45 days
  5. Notify qualified intermediary
  6. Negotiate price with seller
  7. Get under contract
  8. Your 1031 intermediary will wire the capital gains to the title company for your new property
  9. Fill out a government form

There are several rules that are required to follow when doing a 1031 exchange. The first is that you have only and exactly 45 days to identify your replacement property. The timing starts the day you close on your relinquished property. The second is that the replacement property must be closed on within 180 days of the sale of your original property. The key is to purchase one or more properties that are worth the same or more than the property you sell. You can also opt to buy something worth less and pay capital gains on the difference.

There are many other rules and options you can discuss with an expert, such as how to handle purchasing a replacement property before your home sells. An interesting aspect of 1031 exchanges is that there are some ways to never have to pay those capital gains!
1031 Exchanges help defer capital gains, or possibly never pay them! If at any time you have any questions regarding the home selling process I would be happy to help. There are many things to consider such as disclosure, buyer financing, marketing, pricing, and all the required documents that need to be signed!