If you own a lot of little invest properties your energies are spread over a bunch of different properties over a broad geographic space. That's a lot of furnaces, and roofs, and properties to keep an eye on.
Many investors use 1031 exchanges to sell a bunch of little relinquished properties and consolidate that money into one centralized replacement property. If your primary business is to be a real estate broker but you happen to own a bunch of little multifamily housing units, why not sell those little multi-family housing units and purchase an office building in which you can put your real estate brokerage company and maybe still have some space to rent out to a title company, or a mortgage processing company so that you can really focus your equity and your attention on your core business, which is being a real estate broker.
Selling a bunch of little relinquished properties, and pooling those proceeds into one centralized property allows you to focus your attention and maximize the efficiency of your operation.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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