I am going to deal with a topic today for those of you that own income producing properties. Now would be a good time to evaluate your portfolio.
Featuring:
Bob Nelson, Eugene real estate investment broker
Bob Nelson: Are you satisfied with what you have? Would it be better to own a different property or a series of properties in order to facilitate what your plans for the future might entail, such as you got a kid going to college and you need to refinance something, that’s an easy solution. Or if the idea is you own one large property and you would rather own two smaller properties or three smaller properties for estate purposes or for refinancing purposes, all of this can be done without triggering the capital gains tax that would have been paid to the federal government or to the state of Oregon. That’s a tax deferred exchange. If you wanted to study it further it’s internal revenue code section 1031. It tells of the rules and regs that have to be followed for you to complete a 1031 tax deferred exchange.
Actually the easiest thing is to go to my website. I’ve got all of that stuff outlined in plain English. Not quite as good as maybe, council directly from your CPA as to how it would apply to you but it gives you the basics. All of these things can be done but it takes a certain amount of planning. The biggest part of the planning is figuring out what do you want your portfolio to do for you? If you’re absolutely satisfied with what’s there, including its financing, on occasion de-financing is a rather positive thing to do because it increases your cash flow. If there’s anything that would concern you about, “I would like to be in a better position,” now is a great time to think about it. Financing is still very low in interest rate, a little conservative you have to have a larger equity position, but that’s okay, not a problem. Give me a call if you have questions or concerns about anything I’ve just now mentioned.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30 on KPNW for the “Real Estate Today” radio show.
Leave a Reply