Benefits of a 1031 Exchange in a Hot Seller’s Market

1031 Exchange in a Hot Seller's Market

In a hot seller's market, people are making money and there is velocity in the marketplace. In this article, we'll talk about the benefits of conducting a 1031 land exchange in a hot seller's market.

What is a "Hot Seller's Market?"

A hot seller's market is where there are more buyers than there are sellers. When the demand is high, values go up. That's what we like to see - values going up, because it means we're all building equity and the economy is gaining strength.

Values, Profits & Taxes

When values go up that also means that potential profits or gains are going up. That's where the 1031 exchange is so valuable because when you have high profits or gains you have a lot to lose in potential taxes. By using a 1031 exchange to gain the deferral and defer that gain indefinitely by acquiring a replacement property of equal or greater value, equal or greater equity, and offsetting our debt relief, we can defer the gain and keep our hard-earned equity growing and compounding without the drag of taxation diminishing our net worth or slowing the building of our wealth.

  • 1031 Hotline: If you have questions about the benefits of a 1031 exchange in a hot seller’s market, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

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