This usually involves you investing in something and waiting for a long period of time. This might take months or years and has an enormous amount of uncertainty involved because you do not know how much profit you are going to make and over what duration of time.
1031 investments are different from any other form of investment as you get the profit right after you close the sale of the property. 1031 Investments opens many doors as you can roll over the profit from a sale made to another and another and so on. When you do this consistently it also increases your equity each year, so does your growth and when you reinvest the profit attained from the previous sales made even though each year the amount varies due to tax.
There is a popular example of an investor who has invested over 25 years and after depreciation, loan payout he still managed to make 2.5 million. This is because of the fact that he went on strictly by the rules and he had ample help from his hired professionals without whom this wouldn’t have happened. There are other examples of investors who went on and invested their profits into the government’s money, which helped them to earn even more.
The biggest struggles that many of the new investors have in common is how to obtain the money to purchase the first real estate property which your qualified intermediary will be able to help you to figure out. This might seem too good to be true especially when it comes to 1031 investment.
Furthermore, when we think about what these investors do after with their investment, there are two usual scenarios. They either cash in all their earnings and do not invest or roll over the investments any further or they die and pass it on. Yes, you heard that right. Many investors hold their properties until death and therefore pass it on to their heir in which case, the tax virtually disappears. Obviously, this cannot be done by every investor as they are probably mid-aged or young. In this case, the investor does not live to witness the property being used but inheritance has its merits and the one who inherits will hold the property dearly because of both monetary and sentimental value.
Investing through 1031 investment is ideal not only when you’d like to treat it as an investment but it also is an amazing opportunity to turn it into something much bigger. For example: a shopping mall with the help of other investors. This could lead to a huge success. There is no investment opportunity more profitable instantly as well as in the long run other than 1031 investment.
1031 Exchange is so far one of the most profitable investment opportunities available in current economy. Do not miss on this. Invest today.