An Exceptional Exchange Experience, Made Easy. |
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Use a 1031 Exchange
to Buy and Sell Beach Properties
A Case Study for Property Near the Beach
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As the seasons change and summer is in the rearview mirror, we long for the warmer weather and our feet in the sand at the beach. It’s also when renters begin searching for the perfect beach rental for next summer. The ability to work remotely has created a greater demand for beach rentals, which has driven up rental rates, making beach properties a desirable investment.
Follow along with our case study as a buyer and seller use 1031 exchanges for a beach house on the Jersey Shore.
Frank, a real estate investor in Philadelphia, sold his single-family rental and exchanged into a beachfront rental property at the Jersey Shore. He was able to use the deferred tax savings to increase his buying power and had a 20% larger down payment toward a higher-priced replacement property. The new property now generates higher annual rental income and has more long-term appreciation.
Gene and Helen, owners of the beach house for 30 years, also used a 1031 exchange and moved their investment out of the property and into an alternative 1031 exchange replacement property, a Delaware Statutory Trust (DST). They eliminated the burden of maintenance on their investment and deferred an otherwise-prohibitive amount in capital gains.
Frank, Gene, and Helen not only took advantage of the deferment of tax for a savings in capital gains, they used the most powerful benefits of 1031 exchanges: preservation of equity and the time value of the deferral.
The exchanges in this example are not unique—you can also take advantage of a 1031 exchange as a powerful tool.
Follow Frank, Gene, and Helen in more detail after the jump.
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1031 exchanges have powerful benefits for investors that go beyond the tax deferral.
Follow our case study as a buyer and seller use 1031 exchanges to fit their investment to their current needs on a beach rental.
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The 1031 CORP. Exchanging Thoughts Blog
Looking for another perspective on 1031 exchanges and the real estate industry?
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Upcoming Webinars
>> Thursday, Nov. 2, 2023
12:00 Noon Eastern
>> Thursday, December 7, 2023
12:00 Noon Eastern
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1031 CORP. provides an easy-to-follow overview of 1031 exchanges and their many benefits. We'll also review the requirements of a successful exchange and the essential role of 1031 CORP. to keep the exchange transaction simple for all parties. |
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Jen Edmondson Named Branch Manager |
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Congratulations to 1031 CORP.’s Jennifer Edmondson!
Jennifer Edmondson has been named Branch Manager of the 1031 CORP. office in Bend, Oregon. Jen will continue to serve as an Exchange Officer while overseeing all exchange operations. She joined 1031 CORP. in 2022 after working in the escrow industry. Having title and escrow experience has been invaluable to her clients and team members.
Jen, who is a frequent presenter on 1031 exchanges and their many benefits, strives to provide an exceptional exchange experience, and to develop long-term relationships with her clients and our colleagues in the real estate, escrow, financial services, and tax industries.
Jen previously spent more than a decade in the health care industry as an admin coordinator for a trauma department, ICU, and NICU and as a Pediatric Hospitalist. Prior to that, she was a real estate professional for more than six years.
If you would like to congratulate Jen or would like to work with her and our Bend office, please contact her at jennifer@1031CORP.com or (541) 388-1031.
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Jennifer Edmondson
Branch Manager,
Exchange Officer
Bend, Oregon
(541) 388-1031 ext. 241
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Schedule a 1031 Presentation |
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The 1031 CORP. Exchange Team is available to present seminars, webinars, and continuing education courses on 1031 exchanges, their many benefits, and the requirements of a successful exchange to your association or groups.
Our team will tailor the presentation to your audience and time schedule.
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Brittanie Ford
Exchange Coordinator
1031 CORP.
Bend, Oregon
(541) 388-1031 ext. 231
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Brittanie Ford
Role: Exchange Coordinator
Location: Bend, Oregon
How has the use of 1031 exchanges helped your clients’ communities?
Clients use 1031 exchanges for investment properties—that means rental housing. There are so many people in Bend who need affordable rental housing. The market here is saturated with high-cost properties, so people who need housing in the area, but can’t afford to purchase, can have a quality and affordable place to live.
Usually, individual landlords are purchasing the property. Many are not using management companies—the landlords manage it directly themselves—which makes it easier for renters to get into the units.
Even if the property owner is not in the area, a portion of the rent is often spent here, in the community, especially on improvements. And, the renters' income stays local, so their spending and jobs are part of the local economy.
Before you came to 1031 CORP., your background was in escrow. How has that helped you to work as a Qualified Intermediary?
Because of my background in escrow, I feel very comfortable with the closing process and can help make the process efficient. The experience has helped me to see behind the scenes, how the closing is supposed to work and how closing fits in the exchange process. The exchange team has to keep to a schedule and be responsive to the client and closing officers’ needs. I get lots of escrow questions: understanding how to read a closing statement, how deeds are recorded, how to clear a title report, vesting, liens, judgements. It’s been helpful for all of it.
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Poll: What is the best source for market info? |
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Please select only one answer. Poll results will be reported next month.
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Newsletters from real estate professionals and groups
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Poll: Are home prices scaring off investors? |
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Your poll answers from the August issue of Exchanging Times
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Serving as a nationwide Qualified Intermediary for 1031 tax-deferred exchanges since 1991, 1031 CORP. strives to provide an exceptional exchange experience made easy for our clients and their advisors. We provide our clients with enhanced security of funds, knowledgeable exchange professionals and a commitment to keep the exchange process simple for our clients and their advisors. Our Exchange Team, which includes Certified Exchange Specialists®, has the experience and expertise to facilitate even the most complex exchange transactions, including reverse and improvement exchanges.
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