In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Stonegate_at_faircrest
After a period of service as a property, rental investors may decide to sell their rental unit. Nesbitt Realty is a full service brokerage and we have successfully and quickly sold many properties at best market value for our former property management clients in Stonegate_at_faircrest.
If you decide you would like to sell your rental, Connect with us and we'll begin by preparing a comparative market analysis to help figure out what your rental can probably bring if sold. We'll also prepare estimated proceeds so you know how much you'll really take away from the settlement.
What is a 1031 Tax Exchange and how can it benefit me?
A 1031 Tax Exchange is usually of greatest benefit to landlords in Stonegate_at_faircrest who have held rental for a longer period of time (more than ten years). Thanks to IRC Section 1031, a properly structured 1031 exchange allows a real estate investor to sell a property, to reinvest the proceeds in a new rental property and to defer all capital gain taxes. IRC Section 1031 (a)(1) states:
“No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment.”
To understand the powerful protection a 1031 exchange offers, consider the following examples:
- A rental investor has a $100,000 capital gain and incurs a tax liability of approximately $35,000 in combined taxes (depreciation recapture, federal and state capital gain taxes) when the property is sold. Only $65,000 remains to reinvest in another property.
Assuming a 25% down payment and a 75% loan-to-value ratio, the seller would only be able to purchase a $260,000 new property. - If the same real estate investor chose to exchange, however, he or she would be able to reinvest the entire $100,000 of equity in the purchase of $400,000 in real estate, assuming the same down payment and loan-to-value ratios.
As the above example shows, exchanges shelter property owners from capital gain taxes as well as facilitating significant portfolio growth and increased return on investment. In order to access the full potential of these benefits, it is important to have a comprehensive knowledge of the exchange process and the IRC. For instance, an accurate understanding of the key term “like-kind” can reveal possibilities that might have otherwise been overlooked.
What is a short-sale?
A short-sale happens when the seller sells a property for less than what is owed on the property. In the past, because of market contractions, some of our real estate investor clients have found themselves in an untenable situation with regards to their rental property. In those cases the best way out was often a short sale. Quite frankly, due to market expansion and inflation, this has not been much of an issue lately.
Above all, if you need it, members of our staff have CPDE (certified distressed property expert) training. We can clarify the ramifications of a short-sale help you decide if that option is right for you and your rental unit.
Do you need know more about our local real estate market?
Nesbitt Realty's Guide to Real Estate is a helpful tool for everyone who needs to investigate real estate facts about Stonegate_at_faircrest and nearby communities. The Guide to Real Estate compiles information regarding what has sold and what is on the market, as well as a couple of surprising facts that you may not know. In addition, our Guide spotlights some fundamentals of living in Stonegate_at_faircrest. As might be expected, all of this is useful for purchasers and sellers, but rental investors and renters might also find the facts to be somewhat edifying.
Landlord Reference
a free archive for rental investors in Stonegate_at_faircrest
- Before you put a renter in your rental property in Stonegate_at_faircrest
- Collections and evictions
- Communications with the renter
- During tenancy
- End of lease term and what happens when a tenant breaks the lease
- How does the rental investor get paid?
- How your property manager handles the association and your community
- How your management company handles utilities
- How Nesbitt Realty & Management finds renters
- Insurance matters for owners using our property management
- How Nesbitt Realty & Management manage keys
- Stonegate_at_faircrest rental investor responsibilities
- Maintenance, repairs & inspections for your property in Stonegate_at_faircrest
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your property
- When landlords don't yet know their new address
- Vetting tenants in Stonegate_at_faircrest