In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Colonies Of Madrillon
After a period of service as a rental unit, landlords often choose to sell their rental unit. Nesbitt Realty is a full service brokerage and we have successfully and quickly sold many rentals at best market value for our former property management clients in Colonies Of Madrillon.
If you decide you would like to sell your rental property, Phone us and we'll start by preparing a comparative market analysis to help predict what your rental property can probably bring if sold. We'll also prepare estimated proceeds so you understand how much you'll actually make after the settlement.
What is a 1031 Tax Exchange and how can it benefit me?
A 1031 Tax Exchange is usually of greatest benefit to real estate investors in Colonies Of Madrillon that have owned property for a longer period of time (more than ten years). Thanks to IRC Section 1031, a properly structured 1031 exchange allows a landlord to sell a property, to reinvest the proceeds in a new rental unit 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 property owner 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 rental 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 demonstrates, exchanges protect investors 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 critical to have a good working 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 occurs 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 property owner clients have found themselves in an untenable situation with regards to their 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.
But, if you need it, members of our staff have CPDE (certified distressed property expert) training. We can go over the consequences of a short-sale help you decide if that choice is right for you and your rental property.
Do you need understand more about the community?
Our Guide to Real Estate is a handy tool for anyone who needs to learn more about Colonies Of Madrillon and surrounding areas. The Guide to Real Estate provides facts regarding what has sold and what is for sale, as well as many shocking facts that you may not be aware of. Also, our Guide highlights many of the elements of residing in Colonies Of Madrillon. Of course, most of this is interesting for buyers and sellers, but landlords and tenants will probably also find these tools to be very enlightening.
Landlord Reference
a free reference for rental investors in Colonies Of Madrillon
- Before you rent out your investment in Colonies Of Madrillon
- Collections and evictions
- Communications with the tenant
- During the lease term
- 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 property manager handles utilities
- How Nesbitt Realty finds tenants
- Insurance matters for property owners using our property management
- How Nesbitt Realty & Management manage keys
- Colonies Of Madrillon property owner responsibilities
- Maintenance, repairs & inspections for your rental property in Colonies Of Madrillon
- 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 renters in Colonies Of Madrillon