Exeter 1031 Exchange Services, LLC Expands Into Seattle, Washington

1031 Exchange Services Group Expansion Continues

Exeter 1031 Exchange Services, LLC announced plans to continue its nationwide expansion of its 1031 Exchange Services Group.  The nationwide expansion will include other important geographic markets such as Seattle, Washington. 

Northwest Regional Office
800 Fifth Avenue,
Suite 4100,
Seattle, WA 98104

New Northwest Regional Office in Seattle, Washington 

Exeter 1031 Exchange Services, LLC will be opening its new Northwest Regional Office in Seattle, Washington to be located at 800 Fifth Avenue, Suite 4100, Seattle, WA 98104 in May, 2017. 

The Northwest Regional Office will be responsible for sales, marketing and client relationship management for the Northwest Region, including, but not limited to, Washington, Oregon, Idaho and Wisconsin markets. 

Reverse 1031 Exchange Transactions

Need to quickly understand what a Reverse 1031 Exchange transaction is? Welcome to the next episode of Exeter Tax Deferred Solutions' White Board Videos, which will help you learn the 1031 Exchange basics quickly. View the entire series of The Exeter Edge White Board Videos.

Listen to a full interview of Bill Exeter, president and chief executive officer, Exeter 1031 Exchange Services, LLC on the topic of 1031 Exchange issues with host Athena Paquette. Bill Exeter covers the basic issues of 1031 Exchanges, including the requirements and compliance issue necessary to successfully structure and complete a tax-deferred exchange.

Interview on Reverse 1031 Exchanges

The American Dream TV Show host Craig Sewing interviews Bill Exeter, president and chief executive office, Exeter Reverse 1031 Exchange Services, LLC on Reverse 1031 Exchange transactions and how they can help reduce the risk of successfully structuring a Reverse Exchange transaction.

Reverse Exchange Activity Has Increased

What Is A Reverse 1031 Exchange?

Most real property investors are familiar with a regular Forward 1031 Exchange whereby an investor sells his or her current rental or investment property and then exchanges into another property in order to defer the payment of their taxable gains.  The sale of the relinquished property occurs first and the subsequent purchase of their replacement property must occur within 180 calendar days from the date of the sale.  The Reverse 1031 Exchange is the opposite whereby the real estate investor can buy their replacement property first and then sell their relinquished property later.  Reverse Exchanges can give an investor a leg-up in high velocity real estate markets like today.

1031 Exchange Activity Up Substantially

You have no doubt read numerous articles recently that have been discussing news that 1031 Exchange transaction activity is way up.  We have not only heard but have experienced the same thing.  1031 Exchange volume has in fact exploded over the last 12 months or so, and the exchange activity trend continues to look very good indeed.

Reverse Exchanges Increase More Than Regular Exchanges

As we analyzed our 1031 Exchange transaction detail, we noticed an underlying trend - Reverse 1031 Exchange activity had not only jumped as well, but had jumped significantly more than Forward 1031 Exchanges on a percentage comparison basis.  It's certainly not surprising when one looks at the underlying real estate market velocity - its been a crazy real estate market.  Investors are competing with multiple offers and bidding wars in many real estate markets.  This can make a Forward 1031 Exchange stressful for the less sophisticated investor due to the strenuous 1031 Exchange deadlines involved. 

Market Risks Complicate Forward 1031 Exchanges

Regular or Forward 1031 Exchanges mean that investors sell his or her relinquished property first and then they have 45 calendar days to identify their replacement property and an additional 135 calendar days to acquire and close on the replacement property for a total of 180 calendar days for the entire 1031 Exchange.  The problem is that when a sale of relinquished property closes the depreciation recapture and capital gain tax liabilities are recognized.  Investors must identify and subsequently acquire and close on their identified replacement property acquisitions in order to defer the payment of these taxable gains.  If they can't then their 1031 Exchange fails and they must realize their depreciation recapture and capital gain taxes.

Reverse Exchange Helps Minimize Market Risks

This market risk exposes investor to potentially failed 1031 Exchanges, and explains why Reverse 1031 Exchanges have become so popular over the past 12 months or so.  The Reverse Exchange gives an investor the ability to take all the time they want to locate and acquire suitable replacement property, including doing their due diligence, before they sell their relinquished property.  The market risks involved in a Forward 1031 Exchange (i.e. identifying property within 45 days and completing the exchange within 180 days) because they actually acquire and close on their replacement property first so there is no risk that they will not be able to located, identify and acquire the replacement proeprty within the deadlines.

#ReverseExchange #Reverse1031 #ReverseTaxDeferred #ReverseLikeKind #ExeterReverse #Exeter1031

Reverse 1031 Exchanges Are NOT Monsters

I just finished reading an entire message board thread that started with a post by a member of the board that wanted to structure a Reverse 1031 Exchange but was concerned that everyone seemed to call Reverse Exchanges "Monsters."

Reverse 1031 Exchanges NOT Monsters
Now, I've been administering Reverse 1031 Exchanges for many years now, and I can tell you that they are more complicated and absolutely do require more proactive planning compared to regular forward 1031 Exchanges if you want to be successful with your Reverse 1031 Exchange. And, Investors that merely jump into a Reverse Exchange without any planning and good understanding of what is involved is asking for a difficult and challenging Reverse 1031 Exchange. I do not deny any of that.

Powerful 1031 Exchange Strategy
However, when Reverse 1031 Exchanges are used properly and are planned for well in advance, they can be a very powerful strategy in reducing the amount of risk involved with locating, identifying and acquiring suitable replacement property in your 1031 Exchange. I prefer to use the Reverse 1031 Exchange when ever possible so that I can acquire first and not have to worry about whether or not I will be able to acquire my replacement property.

My advice
Just do you homework, ask lots of questions, retain the services of an experienced Reverse 1031 Exchange services provider, make sure that you have a clear picture of what will happen in your Reverse 1031 Exchange, and absolutely do not pick your Reverse 1031 Exchange service provider merely based on fees, or you will be sorry. You definitely get what you pay for in the Reverse 1031 Exchange field. Experience and expertise and priceless for a smooth Reverse 1031 Exchange transaction.

Reverse 1031 Exchange Webinars on August 24, 25, 31, 2009

Follow-up Inquiries Re: Reverse 1031 Exchanges
I received a number of follow-up emails after my recent post about Reverse 1031 Exchanges Gaining in Popularity in the Current Market asking for more information regarding Reverse 1031 Exchanges and how they can be used in today's rapidly evolving real estate market.

Website Content on Reverse 1031 Exchanges
We do not have any material that can be sent via email, but we do host content on Reverse 1031 Exchanges, which is available on our affiliated companies' website through Exeter Reverse 1031 Exchange Services, LLC.

Reverse 1031 Exchange Webinars
However, The Exeter Learning Institute does host weekly webinars, generally on Mondays, on a variety of tax deferred and tax exclusion subjects, as well as other topics such as Economic Forecasts, Demographic Investing, and more.

We do have three Reverse 1031 Exchange webinars scheduled during the next 30 days.

Reverse 1031 Exchanges Gain in Popularity in Current Market

Significant Buying Opportunities
Incredible investment opportunties abound everywhere today. I'm sure that you have seen them, or at the very least heard of them. There are properties that are being sold everyday via a short-sale, via foreclosure (Trustee's Sale) or deed in lieu of foreclosure, or directly by the financial institutions that have already taken the property back via foreclosure (REO Property). The potential long-term return from these investment properties is absolutely astounding. The investment opportunties often already provide positive cash flow.

Cash Is King: But Must Move Fast
The catch is that those who have cash are in control. Cash is King. Investors that have all cash can make offers and move and close on the acquisition of the troubled property quickly. This creates challenges for those that would like to structure a 1031 exchange because you have to move quickly and will generally not have time to sell your existing relinquished property in time to structure a 1031 exchange transaction.

Demand for Reverse 1031 Exchanges
The need to move quickly in the acquisition of short sale properties, foreclosure properties or REO properties has resulted in an unexpected increase in Reverse 1031 Exchange transactions. Investors are identifying tremendous buying opportunities and moving on the acquisitions quickly by acquiring the replacement properties immediately through a Reverse 1031 Exchange.

The Reverse 1031 Exchange allows the investor to move much quicker by taking advantage of the current investment opportunities created by the present real estate market cycle. The investor can buy their replacement properties first and then worry about selling their existing relinquished property within the next 180 calendar days.

Reverse Exchange Pricing

We do a lot of reverse exchange transactions each and every month. In fact, we have seen an increase in reverse exchanges this year compared to what we thought we would see given the real estate market.

How Much is Not Enough and How Much is Too Much

The question we obviously get asked often is how much should we expect to pay for a reverse exchange transaction? Reverse exchange providers are still feeling their way along the pricing models to a certain extent. We see prices that run from $1,800.00 (which should really, really scare you) to well over $25,000.00, which is absolutely rediculous (unless it is a huge transaction).

Complicated Tax Deferred Exchanges

Reverse exchanges are complicated tax-deferred exchange strategies that should not be taken lightly. We have seen many pricing models in the industry, and generally, the lower fees are nightmares waiting to happen, while the really high end fees are taking advantage of the real estate investor.

Competent Reverse Exchange Servicers

Generally, competent reverse exchange servicers are going to be charging somewhere between $5,000.00 and $8,000.00, which should include the reverse exchange services, the documentation, any consulting needed to get the job completed, and the set-up maintenance and dissolution costs and service for the separate LLC that is set-up for each individual reverse 1031 exchange transaction.

Why and When Would You Consider a Reverse 1031 Exchange?

Significant Changes in the Investment Real Estate Market

The investment real estate market has changed quite a bit over the last few months, especially in the residential real estate market segment. And, the commercial real estate market is beginning to demonstrate signs of slowing and price adjustments, the real estate investor must review their strategy when it comes to investing in investment or income properties.

Total real estate inventory listed in the real estate industry today has increased dramatically because real estate is taking much, much longer to market and subsequently close. Buyers are having extremely difficult times in obtaining, qualifying for and funding new debt. Credit and capital markets are beginning to normalize, but there is still quite a ways to go before it is considered normal> There has also been a tremendous increase in foreclosure, deed-in-lieu of foreclosure and short sale transaction activity.

Complicates the Planning, Structuring and Coordination of 1031 Exchanges

Real estate markets like this make planning and structuring 1031 exchanges even more difficult for the investment property owner.

Reverse 1031 Exchanges

The reverse 1031 exchange can put real estate investors back in the drivers seat of the real property transaction because he or she can take all the time they need to find the best and most suitable investment property and then acquire it first before the relinquished property has even been listed for sale.

The real estate investor then has 180 calendar days after they have found their new like-kind replacement property to market and sell their existing relinquished property. It is certainly a buyers market, but priced properly the property will move.

Increased Reverse 1031 Exchanges

We at The Exeter Learning Institute had expected to see a significant reduction in the number of reverse 1031 exchanges during 2008. The real property market would seem to favor selling first and then acquiring the like-kind replacement property via a forward 1031 exchange within the 1031 exchange deadlines.

However, we have been extremely pleases to actually see an increase in reverse 1031 exchanges due to the various problems within the credit, debt and capital markets. Buyers are facing difficult challenges in obtaining and qualifying for new debt and then closing on the relinquished properties and the real property owners are faced (forced) with the prospect of purchasing their replacement properties first or lose their investment property opportunity completely.

Reverse 1031 exchanges allow them to proceed with their replacement property purchase without losing their deposit, losing the income property opportunity, while still keeping the opportunity to defer the payment of their income taxes by using the reverse 1031 exchange.

Contact Information For Help

You can visit Exeter Reverse 1031 Exchange Services, LLC's website for more detailed and in depth information on reverse exchanges.

Call Exeter 24/7

You can also reach a senior executive of Exeter Reverse 1031 Exchange Services, LLC anytime you would like to speak to them - 24 hours a day, 7 days a week.