Investment Strategy for Today’s Real Estate Market

Today's rapidly evolving real estate market provides lots of investment opportunities available for the real estate investor.  The opportunities may be fire sales, short sales, foreclosures (Trustee sales) or deeds-in-lieu of foreclosure.

In any event, the real estate investor must move quickly to close on the really good (i.e. well priced) real estate deals. Cash is certainly king in today’s market place.  Real estate investors that can pay all cash and close quickly will win out, and those who can’t pay cash or move quickly will lose out.

Real estate investors often want to sell some of their existing property to pay for their new acquisitions.  They also want to defer their capital gain taxes via a 1031 Tax Deferred Exchange transaction.  However, the well priced, and therefore really good real estate deals, will not wait for the investor to get his or her current properties listed, sold and closed through a 1031 Exchange transaction.

Investors must therefore find a way to structure their acquisition so that they can acquire the new investment property immediately, and then worry about selling their existing rental properties after they close on their purchase.

Acquiring the new investment property first can be accomplished through a Reverse 1031 Exchange strategy.  The real estate investor doesn’t have to wait to sell his or her existing rental property.  They can close on the new acquisition first, and then market their existing properties following the acquisition.

Although the Reverse 1031 Exchange strategy is more complicated and costly, it provides a solution for a rapidly evolving real estate market so that the more astute investors can take advantage of opportunities as they come along, according to William L. Exeter, co-founder, The Center for Wealth & Legacy. 

Real estate investors can learn more through a free educational webinar.  Click here for more complete registration information.