AMBAR Financial Group - Real Estate Investment Services

Do I have to exchange a condo for another condo, or a duplex for a duplex, etc.? Is that what they mean by "like-kind" exchange?
Do I have to use a Qualified Intermediary during a §1031 Exchange?
If I execute a §1031 exchange will my tax bill go away entirely?
For a §1031 Exchange, what do I need to do when selling my original property?
Why are TICs (Tenancy-In-Common) so popular now?
How can I decide which replacement property I should exchange into?
How are TICs financed?
How are property taxes allocated with a TIC?
How are decisions made in a TIC, such as installing a new roof?
What is the goal of a TIC investment?
I would like to sell my investment property, but am worried about the taxes I will owe. What are my options?
I have run out of depreciation expense on my rental property? What can I do to shelter my rental income from taxes?
Has your rental property gone vacant recently? Are you satifsfied with the income you are receiving from your investment?
I have heard that I can hold Real Estate in my IRA. Is this true?
Are REITs (Real Estate Investment Trusts) like the partnerhips of the 80s?

Not exactly. Exchanges can be made between other assets besides Real Estate. In the Real Estate world any type of real estate may be exchanged for any other type of real estate, as long as it is not your primary residence or your vacation home. The exchanger's intent must be to hold the properties as investment or business use.
Yes, a "Qualified Intermediary" provides safe harbor protection for §1031 exchanges and will facilitate the exchange for a fee, no cash or other benefits can go to the exchanger. Without using a QI, an exchange may be reviewed by the IRS and invalidated by the courts.
No. A §1031 Exchange is a tax deferral strategy. At the point you sell your last property without doing an exchange, your capital gain tax bill at both the Federal and State level will be due. A sometimes forgotten item is the Depreciation Recapture Tax which is also due upon sale.
You will want to have your Real Estate Agent include a Cooperation Clause into your selling contract. You will also want to adhere to the strict timelines mandated by the IRS.
In 2002, when the IRS firmed up the allowable number of Tenant-In-Common owners, one of the major remaining uncertainties regarding the use of TIC ownership for a §1031 exchange disappeared. As a group, TIC owners can now buy interests in institutional properties.
Due Diligence is something AMBAR prides itself on. Economic growth and demographic trends of any particular region are very important factors to consider when finding a replacement property. We have industry resources which will allow you to do a side-by-side comparison of one property against another.
Tenant-In-Common properties get the necessary acquisition funds through raising private equity (from exchange investors such as yourself) as well as financing from large institutional lenders. Property Suppliers will typically raise 35 - 50% through private equity and 50 - 65% through financing a "group loan" for all of the TIC investors.
Because the property is a Tenancy In Common and not legally divided, the property supplier will receive a single property tax bill rather than separate bills for each owner. This property tax bill is treated as an expense on the property and paid from "FFO" or Funds from Operations.
Large capital outlays or other major decisions regarding the property always require a majority or unanimous vote by the owners. The property management company handles typical day-to-day decisions.
TIC investments may have several goals including growth and income or a combination of the two. The potential "income" comes from lease or rental income collected from operations, while the "growth" component comes from the real estate asset appreciating in value typically, over a span of 3 - 7 years.
The taxes due on the sale of an investment property include Federal Capital Gains, State Capital gains, and Depreciation Recapture. AMBAR can help you understand your individual situation and the best course of action regarding your properties. It is possible that a tax deferred property exchange is a strategy that you may pursue.
Depreciation is the expense that the IRS allows for standard "wear and tear" on a building or property. There are many methods used to calculate this deduction. Typically the longer you own a property, the less the write-off becomes. Depending on your personal financial situation, tax deferred property exchange strategy to reinitiate your depreciation expense might be worth considering.
AMBAR specializes in investment properties in regions across the United States, which offer consistent income, appreciation due to the property's surrounding economic growth, and a excellent hedge against inflation.
Although this is not suitable for everyone, owning Real Estate is easier than you think! Through a self-directed IRA, qualified investors can become a partial owner of an office building, apartment building, or retail center with no personal involvment.
Although the "partnership" stigma was still attached to REITs through the 1990's, REITs today have stood on their own as a solid investment vehicle. Many changes in the program structures, such as income orientation and lower leverage profiles, have proven that REITs are a solid alternative investment to the temperamental stock market.

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