Deals That Won’t Wait: Investment Strategy for Today’s Real Estate Market

Today's rapidly evolving real estate market offers a multitude of investment opportunities for the real estate investor. Opportunities can be found in fire sales, short sales, foreclosures (Trustee sales) or deeds-in-lieu of foreclosure.

But, it’s all in the timing. The real estate investor must move quickly to close on the really good (i.e. well priced) real estate deals. Cash is certainly king in today’s market place. For real estate investors that can pay all cash and close quickly the deal is a huge win. For those who can’t pay cash or move quickly it’s lost opportunity. Or is it?

Many times real estate investors want to sell some of their existing property to pay for their new acquisitions and they want to defer their capital gain taxes via a 1031 Tax Deferred Exchange transaction…but, the deal won’t wait. The well priced, and therefore really good real estate deals, will not last while the investor get’s his or her current properties listed, sold and closed through a 1031 Exchange transaction.

The challenge is finding a way to structure the acquisition so that investors can acquire the new investment property immediately, and then worry about selling their existing rental properties after they close on the deal.

A Reverse 1031 Exchange strategy is the answer. The real estate investor doesn’t have to wait to sell his or her existing rental property. They can close on the new acquisition first, and then market their existing properties following the acquisition.

Although the Reverse 1031 Exchange strategy is more complicated and costly, it provides a solution for a rapidly evolving real estate market so that the more astute investors can take advantage of opportunities as they come along, according to William L. Exeter, co-founder of The Center for Wealth & Legacy™ and founder of The 1031 Exchange Institute™.