4 August

Benefits of a 1031 tax deferred exchange for real estate investors

Over the last few years, investors have switched to a more secure and efficient opportunity and that is the Delaware Statutory Trust. If you have been dealing with the world of investments for some time, then you have probably heard about this 1031 tax deferred exchange solution, which can give you the opportunity to minimize your loss risks and to enjoy more flexibility while not making any compromises in terms of profit. But what exactly are the benefits of a 1031 exchange, what can it offer you as an investor?

Defer taxes on gains

The best reason, and the reason why so many investors have chosen this form of investment is deferral of taxes. This opportunity allows you to defer ordinary income or depreciation recapture when selling a property and reinvesting in a replacement one. Because these kind of taxes are rather significant, the money you will be able to save will make a big difference in your overall profit or financial gains. Only for this benefit alone you should take advantage of this investment solution.

Minimal management requirements

Managing a property is not only a time consuming and stressful task, but it also implies a wide variety of maintenance costs, which in time will add up to a significant amount of money. Now, you have the chance avoid the hassle that comes with the management of a property and at the same time avoid dealing with all the maintenance costs, by choosing 1031 tax deferred exchange. You can either replace or exchange the property with someone with less responsibility, and take advantage from relief from management.

A great tool to build wealth

Your first and most important goal as an investor is to make as much profit as possible. Well, with a 1031 exchange solution, such as the Delaware Statutory Trust, building the wealth you have always dreamed of will become much more accessible. You can benefit from net worth increases and impressive cash flow, while eliminating the tax burden and enjoying much more flexibility. These details can be crucial in your overall career as an investor.

Growing your holdings

With 1031 exchange you can grow your holdings much more faster and more efficiently than you could imagine, while practically using the government’s money. The government becomes your own business partner, allowing you to defer capital gains, and to grow your real estate portfolio. If you were looking for the best solution to grow your holdings, this is probably your best option.

As a real estate investor, you need to constantly look for new opportunities that will allow you to build wealth while not putting all of your savings at risks. This is what a 1031 tax deferred exchange promises you, minimal risks and satisfying rewards, which is probably a dream come true for any respectable investor out there. Take advantage of Delaware Statutory Trust, which is a simplified 1031 exchange solution, that will offer you the flexibility you are looking for in both the design and operation of the entity.