Category: 1031 Exchange General

Overview
Growing up, you collect the deed to the Reading Railroad, State Avenue, and Park Place to then realize it’s not quite as simple as a roll of the dice. The advantages and profitability of real estate investments have become more well-known and popular in recent years. Markets are getting hotter while younger people are trying to buy instead of rent, grow their wealth, and prepare for retirement. Throughout all industries, we see people looking for additional sources of income through potential rental properties. Although a great strategy and likely a lucrative venture, not everyone can invest the time and resources to managing an apartment complex, an Airbnb, an office building, or another property that requires regular oversight. For a young entrepreneur, apart from the daily challenges, current prices make it difficult to afford one let alone several investment properties. But that does not mean there are not options for those still interested. There are ways to partake in the real estate industry at an affordable price without committing to the sole responsibility. Through fractional real estate, individual investors can purchase a percentage of commercial real estate ownership that would otherwise be unattainable.
Fractional Ownership
Fractional ownership is an investment structure that allows multiple investors to purchase percentage ownership in an investment-grade asset. In the United States, there are two primary options for those interested in fractional real estate ownership:  Delaware Statutory Trust (DST) and Tenant-In-Common (TIC) ownership.
Tenant In Common Ownership
DST is a legal entity created as a trust in which each investor owns a “beneficial interest.” The DST was developed as a solution to some of the downfalls of a TIC. A TIC requires all the co-investors to agree on any action. It can only have a maximum of 35 investors, and lenders must underwrite all the borrowers within the TIC structure. A DST does not allow for any input from beneficial interest owners, meaning no need for unanimous agreement, the IRS does not have a stated limit for the number of investors a DST may have, and unlike in a TIC, a lender only underwrites a single borrower for a DST, making it easier to secure financing. The investor receives a deeded fractional ownership in the property in a percentage based upon the equity invested. These investments generally pay quarterly based on the excess rent over the property expenses, including mortgage payments. The rate of return varies from deal to deal based on the specifics of the property and financing. Typically, the sponsor knows the net rent that can be expected and can give the investor the anticipated return for the investment term. A DST is a great option for those who wish to diversify their portfolio by including some real estate elements. They allow individuals to rely on a specific return and avoid having to work directly with tenants.
Conclusion
The importance of financial literacy has been brought more attention through the growth of the internet and social media. Real estate investments are not just for moguls that purchase hotels or corporate executives buying shopping malls. There are many options for those young and old that want to diversify their portfolios, begin acquiring assets, or are already ready to upgrade their property. The standard fix and flip of houses has been a very well-known wealth-building strategy. The simple idea of buying a cheap home that needs fixing, making the repairs, and selling for a profit does sound like a piece of cake. Most of the time, the part that gets left out is how much you owe in taxes after receiving that money. Buying a house and making repairs also isn’t as attainable as it once may have been. It takes a lot of time and more money than what you’ll find in your piggy bank. Long-term investment in real estate and then exchanging for more can bring a much higher financial benefit, and it is a strategy that anyone can take advantage of. Yet, many don’t because they think they don’t qualify, can’t afford it, or believe it won’t make a difference, which is not true. It’s time to get into the real estate game, talk to a financial advisor to see if a TIC or DST may be right for you, and get your dice rolling.
Accruit’s team of experts are available to help answer questions, work through your blog

Overview
Growing up, you collect the deed to the Reading Railroad, State Avenue, and Park Place to then realize it’s not quite as simple as a roll of the dice. The advantages and profitability of real estate investments have become more well-known and popular in recent years. Markets are getting hotter while younger people are trying to buy instead of rent, grow their wealth, and prepare for retirement. Throughout all industries, we see people looking for additional sources of income through potential rental properties. Although a great strategy and likely a lucrative venture, not everyone can invest the time and resources to managing an apartment complex, an Airbnb, an office building, or another property that requires regular oversight. For a young entrepreneur, apart from the daily challenges, current prices make it difficult to afford one let alone several investment properties. But that does not mean there are not options for those still interested. There are ways to partake in the real estate industry at an affordable price without committing to the sole responsibility. Through fractional real estate, individual investors can purchase a percentage of commercial real estate ownership that would otherwise be unattainable.
Fractional Ownership
Fractional ownership is an investment structure that allows multiple investors to purchase percentage ownership in an investment-grade asset. In the United States, there are two primary options for those interested in fractional real estate ownership:  Delaware Statutory Trust (DST) and Tenant-In-Common (TIC) ownership.
Tenant In Common Ownership
DST is a legal entity created as a trust in which each investor owns a “beneficial interest.” The DST was developed as a solution to some of the downfalls of a TIC. A TIC requires all the co-investors to agree on any action. It can only have a maximum of 35 investors, and lenders must underwrite all the borrowers within the TIC structure. A DST does not allow for any input from beneficial interest owners, meaning no need for unanimous agreement, the IRS does not have a stated limit for the number of investors a DST may have, and unlike in a TIC, a lender only underwrites a single borrower for a DST, making it easier to secure financing. The investor receives a deeded fractional ownership in the property in a percentage based upon the equity invested. These investments generally pay quarterly based on the excess rent over the property expenses, including mortgage payments. The rate of return varies from deal to deal based on the specifics of the property and financing. Typically, the sponsor knows the net rent that can be expected and can give the investor the anticipated return for the investment term. A DST is a great option for those who wish to diversify their portfolio by including some real estate elements. They allow individuals to rely on a specific return and avoid having to work directly with tenants.
Conclusion
The importance of financial literacy has been brought more attention through the growth of the internet and social media. Real estate investments are not just for moguls that purchase hotels or corporate executives buying shopping malls. There are many options for those young and old that want to diversify their portfolios, begin acquiring assets, or are already ready to upgrade their property. The standard fix and flip of houses has been a very well-known wealth-building strategy. The simple idea of buying a cheap home that needs fixing, making the repairs, and selling for a profit does sound like a piece of cake. Most of the time, the part that gets left out is how much you owe in taxes after receiving that money. Buying a house and making repairs also isn’t as attainable as it once may have been. It takes a lot of time and more money than what you’ll find in your piggy bank. Long-term investment in real estate and then exchanging for more can bring a much higher financial benefit, and it is a strategy that anyone can take advantage of. Yet, many don’t because they think they don’t qualify, can’t afford it, or believe it won’t make a difference, which is not true. It’s time to get into the real estate game, talk to a financial advisor to see if a TIC or DST may be right for you, and get your dice rolling.
Accruit’s team of experts are available to help answer questions, work through your blog

Overview
Growing up, you collect the deed to the Reading Railroad, State Avenue, and Park Place to then realize it’s not quite as simple as a roll of the dice. The advantages and profitability of real estate investments have become more well-known and popular in recent years. Markets are getting hotter while younger people are trying to buy instead of rent, grow their wealth, and prepare for retirement. Throughout all industries, we see people looking for additional sources of income through potential rental properties. Although a great strategy and likely a lucrative venture, not everyone can invest the time and resources to managing an apartment complex, an Airbnb, an office building, or another property that requires regular oversight. For a young entrepreneur, apart from the daily challenges, current prices make it difficult to afford one let alone several investment properties. But that does not mean there are not options for those still interested. There are ways to partake in the real estate industry at an affordable price without committing to the sole responsibility. Through fractional real estate, individual investors can purchase a percentage of commercial real estate ownership that would otherwise be unattainable.
Fractional Ownership
Fractional ownership is an investment structure that allows multiple investors to purchase percentage ownership in an investment-grade asset. In the United States, there are two primary options for those interested in fractional real estate ownership:  Delaware Statutory Trust (DST) and Tenant-In-Common (TIC) ownership.
Tenant In Common Ownership
DST is a legal entity created as a trust in which each investor owns a “beneficial interest.” The DST was developed as a solution to some of the downfalls of a TIC. A TIC requires all the co-investors to agree on any action. It can only have a maximum of 35 investors, and lenders must underwrite all the borrowers within the TIC structure. A DST does not allow for any input from beneficial interest owners, meaning no need for unanimous agreement, the IRS does not have a stated limit for the number of investors a DST may have, and unlike in a TIC, a lender only underwrites a single borrower for a DST, making it easier to secure financing. The investor receives a deeded fractional ownership in the property in a percentage based upon the equity invested. These investments generally pay quarterly based on the excess rent over the property expenses, including mortgage payments. The rate of return varies from deal to deal based on the specifics of the property and financing. Typically, the sponsor knows the net rent that can be expected and can give the investor the anticipated return for the investment term. A DST is a great option for those who wish to diversify their portfolio by including some real estate elements. They allow individuals to rely on a specific return and avoid having to work directly with tenants.
Conclusion
The importance of financial literacy has been brought more attention through the growth of the internet and social media. Real estate investments are not just for moguls that purchase hotels or corporate executives buying shopping malls. There are many options for those young and old that want to diversify their portfolios, begin acquiring assets, or are already ready to upgrade their property. The standard fix and flip of houses has been a very well-known wealth-building strategy. The simple idea of buying a cheap home that needs fixing, making the repairs, and selling for a profit does sound like a piece of cake. Most of the time, the part that gets left out is how much you owe in taxes after receiving that money. Buying a house and making repairs also isn’t as attainable as it once may have been. It takes a lot of time and more money than what you’ll find in your piggy bank. Long-term investment in real estate and then exchanging for more can bring a much higher financial benefit, and it is a strategy that anyone can take advantage of. Yet, many don’t because they think they don’t qualify, can’t afford it, or believe it won’t make a difference, which is not true. It’s time to get into the real estate game, talk to a financial advisor to see if a TIC or DST may be right for you, and get your dice rolling.
Accruit’s team of experts are available to help answer questions, work through your blog

Real estate investing has gained tremendous traction in the past few years.  More and more people are choosing to buy property for investment due to its strong risk / return profile.  Businesses continue to grow and expand, resulting in hot and competitive markets. Properties listed for sale can come under contract within hours.  Trying to grow your real estate assets in fast-paced real estate markets like Texas, Florida, California, or Colorado can become overwhelming.  Nearly every Qualified Intermediary or “QI” still leans on either a purely paper-based system or a makeshift software built for title work. These exchange methods are not only outdated but also inefficient.  Forms are subject to human error or get misplaced and sometimes they aren’t even filled out. This is a costly error if an exchanger were the subject of an IRS audit.  Forms also take time, a highly sought-after commodity in fast-moving business transactions.  
Ideally, a standard forward exchange would begin with the property owner reaching out to their QI before listing the property they would like to sell.  But every deal is different, and an exchange can become very complex very quickly.  A property owner may find themselves at the closing table ready to sell and an exchange needing to happen.  The pen and paper used by so many do not meet the criteria for a rush exchange, let alone a same-day one. 
Accruit has more than 20 years of experience as a nationally recognized Qualified Intermediary and Exchange Manager Pro℠ software.
The ability to provide rush and same-day exchanges is just one of the many reasons Exchange Manager Pro℠ makes Accruit stand out.  The cloud-based software increases security through two-factor authentication, document retention, and electronic signature capture.  Exchange Manager Pro℠ is built on a 1031 exchange rules-based system with wizards to help the client service professionals processing exchanges without constant oversight and feedback.  With an estimated increase of 2-3x the number of exchanges processed per person.  Users of Exchange Manager Pro℠ can spend more time working with clients and less time with administrative tasks.  Accruit holds the highest customer service score in the industry and our new software is another testament to the level of services and satisfaction we provide to our clients 
Accruit is now extending these advancements to Title Companies, Qualified Intermediaries, Banks, Attorneys, and others.  There are options suited for every business’s needs.  Take a look at our Exchange Manager Pro℠ plans – Exchange Facilitator, Managed Service and Software as a Solution.  Find the plan that best suits you and your business needs. 
Exchange Facilitator clients using our automated software features can take advantage of Exchange Manager Pro℠ increased efficiencies, coupled with the depth of knowledge of Accruit’s team of professionals without having to become QIs themselves.  The Exchange Facilitator is an independent consultant and the main point of contact with exchangers regarding 1031 exchanges in the marketplace. Title Companies, Banks, Wealth Advisors and CPAs are often Exchange Facilitator’s.  Although Exchange Facilitator’s can be diverse in nature, they all have a common desire to focus their attention and resources on the growth of their core business while also participating in a value-added service for their customers.
Exchange Facilitator Plan Offers Unique Solutions to:

No more turning away business or referring to competitors
Provide a better customer experience
Drive a new revenue source

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Managed Service clients can easily upload necessary documents and information through the cloud and allow Accruit and Exchange Manager Pro℠ to process the exchange.  This allows them to focus on their clients and enjoy a new line of revenue.  The Managed Service offering allows white-label processing, embedded Qualified Intermediary (QI) functionality and administration, reporting, tracking and funds management for

Real estate investing has gained tremendous traction in the past few years.  More and more people are choosing to buy property for investment due to its strong risk / return profile.  Businesses continue to grow and expand, resulting in hot and competitive markets. Properties listed for sale can come under contract within hours.  Trying to grow your real estate assets in fast-paced real estate markets like Texas, Florida, California, or Colorado can become overwhelming.  Nearly every Qualified Intermediary or “QI” still leans on either a purely paper-based system or a makeshift software built for title work. These exchange methods are not only outdated but also inefficient.  Forms are subject to human error or get misplaced and sometimes they aren’t even filled out. This is a costly error if an exchanger were the subject of an IRS audit.  Forms also take time, a highly sought-after commodity in fast-moving business transactions.  
Ideally, a standard forward exchange would begin with the property owner reaching out to their QI before listing the property they would like to sell.  But every deal is different, and an exchange can become very complex very quickly.  A property owner may find themselves at the closing table ready to sell and an exchange needing to happen.  The pen and paper used by so many do not meet the criteria for a rush exchange, let alone a same-day one. 
Accruit has more than 20 years of experience as a nationally recognized Qualified Intermediary and Exchange Manager Pro℠ software.
The ability to provide rush and same-day exchanges is just one of the many reasons Exchange Manager Pro℠ makes Accruit stand out.  The cloud-based software increases security through two-factor authentication, document retention, and electronic signature capture.  Exchange Manager Pro℠ is built on a 1031 exchange rules-based system with wizards to help the client service professionals processing exchanges without constant oversight and feedback.  With an estimated increase of 2-3x the number of exchanges processed per person.  Users of Exchange Manager Pro℠ can spend more time working with clients and less time with administrative tasks.  Accruit holds the highest customer service score in the industry and our new software is another testament to the level of services and satisfaction we provide to our clients 
Accruit is now extending these advancements to Title Companies, Qualified Intermediaries, Banks, Attorneys, and others.  There are options suited for every business’s needs.  Take a look at our Exchange Manager Pro℠ plans – Exchange Facilitator, Managed Service and Software as a Solution.  Find the plan that best suits you and your business needs. 
Exchange Facilitator clients using our automated software features can take advantage of Exchange Manager Pro℠ increased efficiencies, coupled with the depth of knowledge of Accruit’s team of professionals without having to become QIs themselves.  The Exchange Facilitator is an independent consultant and the main point of contact with exchangers regarding 1031 exchanges in the marketplace. Title Companies, Banks, Wealth Advisors and CPAs are often Exchange Facilitator’s.  Although Exchange Facilitator’s can be diverse in nature, they all have a common desire to focus their attention and resources on the growth of their core business while also participating in a value-added service for their customers.
Exchange Facilitator Plan Offers Unique Solutions to:

No more turning away business or referring to competitors
Provide a better customer experience
Drive a new revenue source

https://js.hscta.net/cta/current.js”> hbspt.cta.load(6205670, ‘7e7c17ab-6957-4a14-9054-a82c95420e0a’, {“region”:”na1″});
Managed Service clients can easily upload necessary documents and information through the cloud and allow Accruit and Exchange Manager Pro℠ to process the exchange.  This allows them to focus on their clients and enjoy a new line of revenue.  The Managed Service offering allows white-label processing, embedded Qualified Intermediary (QI) functionality and administration, reporting, tracking and funds management for

Real estate investing has gained tremendous traction in the past few years.  More and more people are choosing to buy property for investment due to its strong risk / return profile.  Businesses continue to grow and expand, resulting in hot and competitive markets. Properties listed for sale can come under contract within hours.  Trying to grow your real estate assets in fast-paced real estate markets like Texas, Florida, California, or Colorado can become overwhelming.  Nearly every Qualified Intermediary or “QI” still leans on either a purely paper-based system or a makeshift software built for title work. These exchange methods are not only outdated but also inefficient.  Forms are subject to human error or get misplaced and sometimes they aren’t even filled out. This is a costly error if an exchanger were the subject of an IRS audit.  Forms also take time, a highly sought-after commodity in fast-moving business transactions.  
Ideally, a standard forward exchange would begin with the property owner reaching out to their QI before listing the property they would like to sell.  But every deal is different, and an exchange can become very complex very quickly.  A property owner may find themselves at the closing table ready to sell and an exchange needing to happen.  The pen and paper used by so many do not meet the criteria for a rush exchange, let alone a same-day one. 
Accruit has more than 20 years of experience as a nationally recognized Qualified Intermediary and Exchange Manager Pro℠ software.
The ability to provide rush and same-day exchanges is just one of the many reasons Exchange Manager Pro℠ makes Accruit stand out.  The cloud-based software increases security through two-factor authentication, document retention, and electronic signature capture.  Exchange Manager Pro℠ is built on a 1031 exchange rules-based system with wizards to help the client service professionals processing exchanges without constant oversight and feedback.  With an estimated increase of 2-3x the number of exchanges processed per person.  Users of Exchange Manager Pro℠ can spend more time working with clients and less time with administrative tasks.  Accruit holds the highest customer service score in the industry and our new software is another testament to the level of services and satisfaction we provide to our clients 
Accruit is now extending these advancements to Title Companies, Qualified Intermediaries, Banks, Attorneys, and others.  There are options suited for every business’s needs.  Take a look at our Exchange Manager Pro℠ plans – Exchange Facilitator, Managed Service and Software as a Solution.  Find the plan that best suits you and your business needs. 
Exchange Facilitator clients using our automated software features can take advantage of Exchange Manager Pro℠ increased efficiencies, coupled with the depth of knowledge of Accruit’s team of professionals without having to become QIs themselves.  The Exchange Facilitator is an independent consultant and the main point of contact with exchangers regarding 1031 exchanges in the marketplace. Title Companies, Banks, Wealth Advisors and CPAs are often Exchange Facilitator’s.  Although Exchange Facilitator’s can be diverse in nature, they all have a common desire to focus their attention and resources on the growth of their core business while also participating in a value-added service for their customers.
Exchange Facilitator Plan Offers Unique Solutions to:

No more turning away business or referring to competitors
Provide a better customer experience
Drive a new revenue source

https://js.hscta.net/cta/current.js”> hbspt.cta.load(6205670, ‘7e7c17ab-6957-4a14-9054-a82c95420e0a’, {“region”:”na1″});
Managed Service clients can easily upload necessary documents and information through the cloud and allow Accruit and Exchange Manager Pro℠ to process the exchange.  This allows them to focus on their clients and enjoy a new line of revenue.  The Managed Service offering allows white-label processing, embedded Qualified Intermediary (QI) functionality and administration, reporting, tracking and funds management for

Since 1921, the rules for qualifying and completing 1031 like-kind exchanges are in all areas of commerce. Like-kind exchanges are a tax deferral, NOT a tax avoidance. By deferring the taxes, property owners can reinvest that money back into the economy by applying the money towards a productive property, creating jobs for entry-level to top executive employees, housing opportunities, and more. 
A Accruit requires the taxpayer to indicate how many properties they intend to acquire. Once those transactions are complete, the funds can be returned. 
Early Release of Funds
If a taxpayer decides not to move forward with an exchange, they must acknowledge to their QI that they understand they will pay all applicable taxes on the gain. Even so, exchange facilitators are only permitted to disburse funds at particular times for particular reasons. The only time someone can terminate an exchange early is at the end of the 45-day identification period. If the taxpayer has not identified a single property by 45 days, they can close their exchange, and the funds can be disbursed. If the taxpayer has identified any property, funds must be held until the transaction is complete or at the end of the 180-day exchange period. Suppose an exchange facilitator is found to be deviating from the rules. In that case, failure to comply with regulation could jeopardize any of this taxpayer’s previous exchanges and any other exchanges facilitated by the company.
1031 Exchange Timeline
“Can I start a 1031 exchange after I’ve sold my property?” or “I just closed on my property; can I still do an exchange?” There are a few variations to this question, but ultimately the answer is always the same. Once you’ve sold and closed on a property, it is no longer eligible for exchange. The taxpayer cannot take actual possession or control the net proceeds from the sale of a relinquished property in a 1031 exchange. An exchanger must contact a QI before selling their property. If you find yourself short on time or at the closing table, don’t lose hope with processing an exchange. With Accruit’s patented software, Exchange Manager Pro℠, we can get you set up for a rush exchange in under an hour.