Should I do a 1031 exchange? What are the alternatives?

If you have decided it is time to sell, the big question is: ” What now?” There are a number of possibilities:

1) Exchange into a larger or smaller property (depending where you are in your investment career).

2). Invest in a triple-net leased property. With these properties (such as a Wendy’s or a Taco Bell or even a Walgreens), the tenant is responsible for all costs expenses and repairs. The downside can be if the tenant leaves for any reason, you may have a difficult time replacing the income and you would assume expenses such as taxes, insurance and maintenance.

3) An Installment sale could allow you to be taxed on the gain in different tax years. Your CPA can advise if this is right for you.

4) Delaware Statutory Trusts and UPREITS. These are group investments which offer differing amounts of liquidity, cash requirements and safety. Check with your Real Estate attorney before investing in either of these.

Always check with your CPA, and your own legal counsel before embarking on a new investment strategy. It took you a while to get where you are, and you do not want to jeopardize that. We are Real Estate brokers and can’t give legal or accounting advice.

What PRS PROPERTIES CAN do for you is give you a good idea what your property is worth in the current market, and whether some small changes before the sale could be worthwhile. Remember, we are apartment owners too! We have investors looking and quite often, we can put together an offer without a listing.