The Concept of Real Estate Exchanging

Most of us are accustomed to using money as a medium of exchange. If we want to divest ourselves of one piece of real estate, we believe we must first list the property, sell it, receive cash and then use that cash to buy another property. However, real estate exchanging is the idea of using equity in property as a spendable commodity. Under this paradigm, the process of divesting ourselves of property includes only two steps: Identifying the property we want, and spending our property to purchase it.

A successful exchange involves one critical element: getting the seller of the property we want to accept what we have for compensation.  In order to facilitate this process, agents at The Property personally present exchange offers with owners and their agents to educate them on the benefits of a particular transaction.  All transactions are structured with the mentality that all parties involved must benefit.

The Benefits of Real Estate Exchanging

Many people are familiar with the tax-deferred 1031 exchange, however, the desire to defer tax on capital gains is only one reason to exchange real estate. Others may include:

• A desire to step up basis.
• Leveraging to a larger portfolio.
• Definancing.
• Going “down and out,” or liquidating one’s portfolio.
• Overcoming a lack of financing in real estate markets.
• Changing investment strategy.
• Going in or out of management.
• To form a partnership.
• To end a partnership.
• And many, many more.

Your Source for Real Estate Exchanging

If you’ve found yourself in a real estate situation that you think may benefit from a real estate exhange or other creative solution, please CONTACT US.  We can introduce you to real estate exchanging and custom tailor a solution for your particular situation.