In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Maurertown
After a period of owning a property, real estate investors may decide to sell their rental property. Nesbitt Realty is a full service brokerage and we have successfully and quickly sold many properties at best market value for our former landlord clients in Maurertown.
If you decide you would like to sell your property, Email us and we'll start by preparing a comparative market analysis to help figure out what your rental unit will likely bring if sold. We'll also prepare estimated proceeds so you understand how much you'll actually net at 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 Maurertown who have owned rental unit for a longer period of time (more than ten years). Thanks to IRC Section 1031, a properly structured 1031 exchange allows a rental investor to sell a property, to reinvest the proceeds in a new 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 real estate 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 demonstrates, exchanges protect rental 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 crucial 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 uncover 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 landlord 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 even so, if you need it, members of our staff have CPDE (certified distressed property expert) training. We can clarify the consequences of a short-sale help you decide if that choice is best for you and your property.
Should you understand more about the area?
Nesbitt Realty's Guide to Real Estate is a handy resource for anyone who wants to find out more about Maurertown and neighboring communities. The Guide to Real Estate includes information regarding what has sold and what is currently listed, and a few interesting facts that you may not know. And, our Guide features some fundamentals of life in Maurertown. Of course, all of this is helpful for buyers and sellers, but real estate investors and tenants might also find this information to be quite sobering.
a handy reference for rental investors in Maurertown
- Before you lease out your investment in Maurertown
- Collections and evictions
- Communications with the tenant
- During tenancy
- End of tenancy and what happens when a renter breaks the lease
- How does the landlord get paid?
- How your rental manager handles the association and your community
- How your rental manager handles utilities
- How Nesbitt finds tenants
- Insurance matters for landlords using our rental management
- How Nesbitt Realty & Management manage keys
- Maurertown property owner responsibilities
- Maintenance, repairs & inspections for your property in Maurertown
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your rental
- When owners don't yet know their new address
- Vetting tenants in Maurertown