Exchange Resource Group

Upcoming Classes with ERG

1031 Exchanges, 1 Hr CE Class, hosted with Lifestyles Unlimited

Date:

May 23, 2023

Location:

Zoom

Time:

12:00 – 1:00pm

Contact:

Reach out to us for more information

1031 Exchange Essentials, 1 hr CE Class, hosted by Elevated Title

Date:

May 23, 2023

Location:

8480 E Orchard Rd #4000, Greenwood Village, CO

Live only

Time:

10:00am – 11:00am (MST)

Contact:

Tonya Stevens

Tonya@ElevatedTitleCo.com

Reverse 1031 Exchanges and Improvement/Construction Exchanges

Date:

May 30, 2023

Location:

Zoom

Time:

10:00am – 11:00am (MST)

Contact:

Caleb Ernst at ERG

caleb@erg1031.com

Signup Link:

ERG Zoom Class Sign Up

1031 Exchanges, 1 hr CE class hosted by Capital Title

Date:

June 8, 2023

Location:

4611 Preston Rd Ste 400, Frisco, TX 75034

Live Only

Time:

12:00pm – 1:00pm

Contact:

Lauren Pulido,

lpulido@ctot.com

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Reverse 1031 Exchanges and Improvement/Construction Exchanges

Reverse 1031 Exchanges provide investors with maximum flexibility and options for their exchange. From construction and renovations, to timeline flexibility, a reverse exchange is a powerful tool to be able to grow your real estate portfolio.

They allow investors to:

1) To purchase a property before they have sold their old property.

2) To do improvements to a property using tax deferred dollars.

3) To build new construction using tax deferred dollars.

How does it work

The Purchase

ERG will set up an LLC as the Exchange Accommodation Titleholder (EAT) in the state where the property is located. This entity will take title and purchase the property.
The entity, which is owned by ERG, will hold the property under an exchange agreement for the exchanger until the conclusion of the exchange
The exchanger will provide the funds or be the guarantor on a loan to the EAT to enable the purchase of the property. ERG will sign the closing documents (and loan documents) at the time of the closing as buyer.

The Sale

The exchanger will proceed with the sale of there property through a straight 1031 exchange.
Once the exchanger sells their relinquished property, the proceeds can be used to fund improvements/construction or be used to repay the financing of the purchase.

Improvements and Construction

All improvements/construction using exchange funds will be done while ERG owns the property.

Closing Out the Reverse Exchange

At the conclusion of the exchange, ERG will transfer ownership of the EAT (LLC) and the property to the exchanger. This transfer serves as the acquisition of the replacement property by the exchanger.

At ERG, we specialize in complicated and strategically structured reverse exchanges. While they may seem complicated, we can walk you through the process and simplify the steps. Reach out to us to see how you could utilize a reverse 1031 exchange.

Want more information?

Download ERG's Brochure

Client Spotlight: James H.

James was a teacher in the Denver area and wanted to sell a property he acquired years prior. He didn’t want to pay the capital gains taxes from the sale but didn’t know where to start. He contacted ERG and we were able to walk him through the process and the regulations. He completed his exchange in 2022 and was able to take advantage of the tax deferral benefits of a 1031 exchange.

"Thank you ERG so much for helping me through my first 1031 exchange. As a school teacher, I did not have a ton of knowledge about how exchanges worked and the benefits therein. Your team was incredibly helpful walking me through all the rules and regulations of the exchange. Please know that you changed the trajectory of my life with this exchange. I was looking at a large tax burden from the sale of my vacant lot, and now I am reaping the benefits of deferring those funds into a cash flowing rental property."

-- James H.

Sold a lot in Denver, CO

Sales Price: $230,000

Basis: $15,000

Capital Gains: $215,000

Purchased a house in Lakewood, CO

Purchase Price: $230,000

Capital Gains Tax Deferral: $42,033.00

Meet the team at ERG