When it comes to 1031 exchanges, you have several options when it comes to properties and it can be hard to decide what your best option is. In this article, we are going to explain a few reasons to consider debt-free DST properties for your 1031 exchange.
No Refinancing or Lender Foreclosure Risk
With all-cash, debt-free DST property, there is no risk of refinancing or lender foreclosure.
Safety & Simplicity
Buying your property free and clear is perhaps the safest way to own real estate. It also protects your principal and reduces the risk of future issues with the property.
With debt-free property you have the flexibility to weather any market fluctuations, recessions, or other related issues.
Eliminates Potential Debt Issues
In a typical 1031 exchange, your replacement property has to be of equal or greater debt compared to your relinquished property. This can be an issue if interest rates are high at the time of the exchange. Debt-free DST property avoids this issue entirely.
Save Money with a 1031 Exchange!
A 1031 exchange is a fantastic vehicle to save money when selling real estate. At Commercial Partners Exchange Company, we work directly with investors and taxpayers to facilitate their 1031 real estate exchanges. With over twenty years of experience, our intermediaries are well-versed in the 1031 exchange process and can walk you through every step from closing to closing. Don’t hesitate to reach out to us at our downtown Minneapolis office to chat with one of our qualified intermediaries about your situation.
- Start Your 1031 Exchange: If you want to get your 1031 exchange started, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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