REASONS TO EXCHANGE
In addition to deferring taxes and reinvesting savings, there are many other
advantages to exchanging investment properties, including:
Leverage: Leverage your equity to acquire a more valuable property
or properties.
Diversification: Spread your equity to acquire a more valuable
property or properties.
Consolidation: Consolidate the equity among properties varying in
value, type or location.
Cash Flow: Move equity from a low income producing property (like
raw land) to a higher income producing property such as retail or industrial.
Management Relief: Trade property with excessive maintenance and
overhead for managed property.
Increased Depreciation: Change property types to take maximum
advantage of available depreciation.
Estate Planning: Turn tax deferral into tax savings by including
1031 strategies in your estate plan.
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