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The Art of Doing a 1031 Exchange

by Kijner & Sons International Realty

 

Many clients of KSI Realty NY Inc. are savvy investors and one of our favorite topics of discussion is the 1031 exchange. Those 4 mysterious numbers are simply an IRS tax code identification that allows owners of a business or investment property to defer the recognition of the capital gain tax normally due upon the sale of the property as long as it is re-invested in a "like-kind" property of equal or greater value through the use of a qualified intermediary.

We often start our conversations with our sellers and prospective buyers by including their attorneys, wealth managers, bankers and accountants around one table to ensure that their short, mid and long term objectives are well understood. We start with a snapshot of their current state and open the discussion on their goals in 7, 15 and 30 years from now. It is crucial that all professionals have a clear understanding of what is happening first as many fields overlap and all professionals around the table will ultimately shape the final real estate deal decision making process. This is a pluridisciplinary effort.

Many misconceptions and issues can arise from the lack of communication between key professionals. Clients may sometime fail to realize that legal objectives may come in opposition with fiscal, or real estate ones. Having a clear overview and a dashboard of all mechanisms gives you the ability to take informed decisions. Multiple test scenarios are often studied in order to come up with the final approach. On a daily basis, we speak to our clients' attorneys, insurance brokers, accountants and other key financial actors to facilitate the deals. We never give financial advises, practice law or overstep in regulated and licensed industries but we talk, exchange and facilitate the flow of real estate related information to ensure that our client's end goals are achieved.

1031 exchanges are often looked as mysterious, difficult, lengthy and potentially cumbersome. To the contrary, they are actually very easy, reasonably fast and very transparent if you use the right professional. The cost is very minimal, most qualified intermediaries get a small service fee plus a percentage of the interest of the funds they hold.  This is often far less than the potential capital gain that may be paid especially for investments that have been kept for a long time. The likelihood of heightened capital gains is stronger over long periods as market prices often rise. A good business practice is to identify your qualified intermediary via your trusted professionals such as your licensed real estate broker, accountant, banker or attorney. A solid track record and years of experience in serving as a qualified intermediary is key. We advise our clients to research the nature of the guaranties offered by the qualified intermediary. Making sure their money will be safe and limiting the risk to see lifelong savings vanishing into the "wild".

Many clients forfeit the idea of a 1031 exchange thinking they have to find someone who is willing to swap, or worst that they have to buy the exact same type of property they are selling. Another classic misconception we see, is that the exchange must be simultaneous or that the entirety of the proceeds must be used for the replacement property(ies). This is all false. Even very complexed real estate deals such as REITS or other trust funds can have adequate solutions such as using DST's (Delaware Statutory Trusts) which are recognized 1031 exchanges. One of the main advantages of DST's is the ability to exchange immediately without delay on the day of closing ensuring the continuity of passive income as it is often one of the determining factors for many of our investors that are looking at ensuring the perennity of their flow of income. 

As licensed real estate brokers, we do not financially benefit from the 1031 exchange, we do not perceive a commission and at KSI Realty NY Inc. we are not qualified intermediaries. The benefit goes 100% to our clients. We share our vast knowledge of commercial and investment real estate as good business practices to allow our clients to maximize their reinvestment. Allowing them to use the deferment of the capital gain portion, which is in essence free leverage that can be used towards a new purchase until it is sold again and/or reinvested. Currently, there are no limitation to the number of 1031 exchanges one investor can undertake as long as the replacement property is kept for at least 2 years, although certain exceptions may apply. As with everything, nothing is static and clients should always seek the assistance of their attorney, accountant as well as wealth and estate planners to anticipate new regulations that are in discussion. For instance, the new tax plan law that President Trump is pushing may have repercutions to 1031 exchanges as well as state and local deductions that would be eliminated (SALT tax) or standard loan interest deductions that many homeowners and investors are relying on. This could put a serious damper to the vivacity that the real estate market has seen lately especially since the slow but steady recovery from the subprime crisis of 2008.

We advise our clients to constantly scan the fiscal and legal environment to make the best investment decisions. Also keep in mind that even failed 1031 exchanges can have benefits. If you are not able to identify a like-kind property or meet any of the restrictions rules imposed by the IRS in the allotted time, you simply defer the payment of your capital gain up to 6 months.

For more information on how to purchase income producing or investment properties, please contact us for your complimentary session.

----

Article originally published on October 19th, 2017 on KSI Realty New York website at http://www.nyc2buy.com/blog/the-art-of-doing-a-1031-exchange

Summer 2017 eNewsletter

by Kijner & Sons International Realty

    

SUMMER 2017 E-NEWSLETTER
    


~~~~
LISTINGS OF THE MONTH
~~~~


 
FRANCE
 


   PROVENCE-CÔTE D'AZUR

with our exclusive partner



france@kijner.com
          


Breathtaking Panoramic Sea View
of the peninsula of Giens, the double tombolo
& the island of Porquerolles

Stunning 6 Bed, 3 Bath Contemporary Villa 

with Garden and Swimming Pool

Carqueiranne, Var
at 
3,300,000 euros

     
   
  


Sea View 5 Bed, 4 Bath Luxury Villa 
overlooking the Mediterranean Sea
Gulf of Saint Tropez, Var

at 1,250,000 euros

     



To view all of our current luxury listings for sale in Provence-Côte d'Azur, click 
here.

 

PARIS & SUBURBS

with our exclusive partner



france@kijner.com



We offer tailored-made luxury solutions and unique listings for sale in Paris and its suburbs.
Our dedicated and experienced team offers full concierge and lifestyle services from housekeeping, property management, decoration to apartment hunting.
Contact us today to learn how we can be of assistance!


To view all of our current luxury listings for sale in Paris and its suburbs, click 
here.




THAILAND

New this month!
Some of our latest commercial and retail leases in Bangkok


7 Private Fully Furnished Office Spaces
Can accommodate 17 to 20 staff
Rama IV, Bangkok
starting at 
18,000 THB/month for a 28 sqm space

     
      
  


AVAILABLE ON SEPTEMBER 2017
139 sqm of Prime Commercial Space 
Phrom Phong, Bangkok
at 
180,700 THB/month

     
      

  

381 sqm of Commercial Space
Ratchada Road, Ding Daeng, Bangkok
at 160,000 THB/month

     
      

  

To view all of our current luxury listings for rent and sale in Bangkok, Thailand, click here.





NEW YORK CITY, NEW YORK

nyc@kijner.com



We have amazing properties for rent and sale all over Manhattan. Check out our latest condos, coops and townhouses now to find your next home in the Big Apple.

Whether you are looking for a doorman building in the Upper East Side, a walk-up apartment in a brownstone in Greenwich Village or the East Village, a studio in Gramercy, a 2-bed to move-in with a roommate in Midtown or a penthouse suite overlooking Central Park, we have what you need!


    

To view all of our current listings for rent and sale in New York City, click on the icons above or 
here.

Download your free NYC Renter's Guide here!


~~~~
WHAT TO DO AND SEE THIS SUMMER
~~~~


"Christian Dior, Couturier du Rêve"
Paris, France


     

        


The Musée des Arts Décoratifs in Paris, France celebrates from 5 July 2017 to 7 January 2018 the 70th Anniversary of the creation of the House of Dior. 
Be amazed by the impressive exhibition that invites you to discover the universe of its founder and its many famous designers who made Dior, the ultimate French luxury fashion powerhouse adored and revered worldwide.

Learn more and get tickets here


****


Miami Spice is Back! 


From August 1st to September 30th 2017, enjoy the yearly restaurant promotion showcasing some of the Magic City's best cuisine. No sign-up or membership required. Just visit your preferred restaurant websites to see if the Miami Spice Lunch, Brunch or Dinner Promotion applies. Bon Appetit South Florida!

 Learn more here.


HAVE AN AMAZING AND SAFE SUMMER!

****

To view all of our current listings for rent and sale, click on the desired link
France
Thailand
Miami, FL
New York, NY

We specialize in income producing properties 
as well as residential and commercial investment opportunities. 
Contact us today for your private consultation. 

To unsubscribe from our mailing list, email us at info@kijner.com.


Working with Foreign Buyers

by Kijner & Sons International Realty

Kijner & Sons International Realty is proud to be featured in the latest edition of The Residential Specialist*, a magazine by the Council of Residential Specialists (CRS). The CRS designation is the highest credential awarded to residential sales agents, managers and brokers, a symbol of excellence in residential real estate.

To read KSI Realty's interview in the piece written by Ms. Gayle Bennett and entitled "Working with Foreign Buyers. Tips for increasing your international client base", just scroll down on the iframed article below or click here

To learn more about the CRS Designation, click here.




Are you looking to invest abroad? Ask the specialists! We specialize in both residential and commercial real estate with an emphasis on income producing properties and luxury homes. We are servicing France (Paris and Provence-Côte d'Azur), Bangkok in Thailand and the U.S.A with New York City and Miami, Florida.

Contact us today for your a private consultation at
info@kijner.com.

--

Note: *
The Residential Specialist is published for Certified Residential Specialists, General Members and Subscribers by the Council of Residential Specialists. The magazine’s mission is: To be a superior educational resource for CRS Designees and Members, providing the information and tools they need to be exceptionally successful in selling residential real estate.

April 2017 eNewsletter

by Kijner & Sons International Realty

    
 APRIL 2017
E-NEWSLETTER
 



For those of you celebrating, we wish you and your loved ones
a joyful and meaningful holiday season.
Happy Easter, Passover and Songkran!



~~~~
LUXURY LISTINGS OF THE MONTH
~~~~


FRANCE 


   PROVENCE-CÔTE D'AZUR

with our exclusive partner



france@kijner.com
          


Waterfront 5 Bed, 4 Bath House
with Garden and Terraces

Carqueiranne, Var
at 
2,880,000 euros

     
   
  


Contemporary 8 Bed, 3 Bath Villa 
overlooking the Mediterranean Sea
Bandol, Var

at 1,910,000 euros
Co-Exclusive Listing 

     



Luxury 4 Bed, 3 Bath Villa
with Swimming Pool
 

Hyères, Var
at 
1,630,000 euros   

     



 Highlight of the Month 



Charming 7 Bedroom Villa 
with Swimming Pool and Stunning Sea Views

Carqueiranne, Var
at 1,800,000 euros - PRICE REDUCTION!

    



To view all of our current luxury listings for sale in Provence-Côte d'Azur, click 
here.

 

PARIS & SUBURBS

with our exclusive partner



france@kijner.com



We offer tailored-made luxury solutions and unique listings for sale in Paris and its suburbs.
Our dedicated and experienced team offers full concierge and lifestyle services from housekeeping, property management, decoration to apartment hunting.
Contact us today to learn how we can be of assistance!


To view all of our current luxury listings for sale in Paris and its suburbs, click 
here.


ORLANDO, Florida, USA





KSI Realty is pleased to present The Grove, Resort & Spa
Just 5 minutes to Walt Disney World
and Orlando's newest vacation home resort
2 bed, 3 bath condo units starting from the $260,000s

4 unit types to choose from:
Palm - 2 bed, 2 bath, 1,338 sq.ft/125  with balcony
Birch - 2 bed, 2 bath, 1,468 sq.ft/135  with balcony
Jasmine - 3 bed, 2 bath, 1,468 sq.ft/135  with balcony
Sable - 3 bed, 3 bath, 1,614 sq.ft/150  with solarium and balcony

Learn more by contacting us at info@kijner.com.



THAILAND

New this month!
Some of our latest commercial and retail leases in Bangkok


130 sqm of Prime Retail Space
First Floor of a Community Mall

Sukhumvit, Phrom Phong, Bangkok
at 
100,000 THB/month

     
      
  


180 sqm of Restaurant Space 
Ground Floor of a Prime Shopping and Retail Complex

Petchaburi Road, Bang Kapi, Bangkok
at 
300,000 THB/month

     
      

  


4 Shophouses with 3 Parking Spaces
900 sqm Multi-Use Complex
Ideal for a Guest House, a Hostel, a Co-Working or Office Space
a Spa, a Clinic, a Showroom, etc. 
Sukhumvit, Phrom Phong, Bangkok
at 230,000 THB/month

     
      

  

First 2.5 Floors of a Double Shophouse
270 sqm of usable space
Ideal for a Restaurant, a Pub or Coffee Shop
a Hostel, a Spa, a Clinic, a Showroom, an Office etc. 
Sukhumvit, Thonglor, Bangkok
at 280,000 THB/month

     
      



To view all of our current residential and commercial listings for rent and sale
in Bangkok Thailand, click 
here.


~~~~
COMPANY NEWS
~~~~


Don't forget to download your free NYC Renter's Guide!






****


To view all of our current listings for sale and for rent, click on the desired link
France
Thailand
Miami, FL
New York, NY

We specialize in income producing properties 
as well as residential and commercial investment opportunities. 
Contact us today for your private consultation. 

To unsubscribe from our mailing list, email us at info@kijner.com.


REBNY Newsletter - Numbers you need to know

by Kijner & Sons International Realty

KSI Realty New York office is pleased to share with you REBNY's latest Research Newsletter. The report is comparing all the real estate transactions from 2014 to 2015 for citywide residential home sales including 1-3 family homes, condominiums, and cooperatives as well as investment property sales including commercial, manufacturing and multifamily rental properties

According to Mike Slattery, REBNY Research Department Senior Vice President "[i]n 2015, the total consideration for all real estate transactions was $113.4 billion, a 33 percent increase in total consideration compared to $85.2 billion in 2014. ­­­­­­­­­­­­In 2015, there were 53,904 real property sales, a 10 percent increase over the 49,099 in 2014".

To download the newsletter, click here, or view the image below.


Welcome to Shanghai!

by Kijner & Sons International Realty

 

 

KSI Realty has arrived in Shanghai, China's largest city by population, and is getting ready for tomorrow's grand opening of the Overseas Property and Investment Show to be held for 4 days at the city's exhibition center (SEC).

Our booth is being set up at this very moment and all of our partners and team members from Florida, France, Thailand and Costa Rica have gathered for this special event to help wealthy Chinese investors - making up a large portion of the expected 35,000 visitors - invest and relocate abroad.   

Come to our booth #2009 to learn more about residential real estate and commercial investment opportunities in Costa Rica, Thailand and France as well as immigration, short sales and foreclosures in Florida, USA. 


 



Discover Beautiful Costa Rica

by Kijner & Sons International Realty

Kijner & Sons International Realty would like to share with you a video of Costa Rica's stunning landscapes and provinces. Enjoy!


http://www.youtube.com/watch?v=BdKiPR3kdjo&feature=g-vrec&context=G25c5b3aRVAAAAAAAABg

If you are looking to invest in or relocate to Costa Rica, we can help! To learn more about Costa Rica, click here.

You can also read our Q&A about investing and living in Costa Rica whether you are considering buying a commercial or a residential property. We sell casinos, teak farms, hotels, restaurants, luxurious villas....just check our "Featured Properties" page!

Questions, comments? Contact us at info@kijner.com

Real Estate as an Investment

by Kijner & Sons International Realty

If you are looking to invest in real estate, Kijner & Sons International Realty would like to share with you a list of advantages and disavantages you should keep in mind when considering residential or commercial opportunities in either Miami or Sarasota Florida:

Advantages of Real Estate:

1. Relatively high yields
2. Leveraging opportunities
3. Income tax flexibility
4. High degree of personal control
5. Equity buildup
6. Hedge against inflation

Disadvantages of Real Estate

1. Relatively poor liquidity
2. Large capital requirements
3. Necessity of constant management
4. Landlordism: involvement with tenants
5. Risk

What’s a Home Warranty?

by Kijner & Sons International Realty

A home warranty is a service contract, normally for one year, which helps protect home owners against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear. Coverage is for systems and appliances in good working order at the start of the contract.

Check your home warranty policy to see which of the following items are covered. Also find out if the policy covers the full replacement cost of an item. 

  • Plumbing
  • Electrical systems
  • Furnace
  • Water heater
  • Heating ducts
  • Water pump
  • Dishwasher
  • Garbage disposal
  • Stove/cooktop/ovens
  • Microwave
  • Refrigerator
  • Washer/dryer
  • Swimming pool (may be optional)

To learn more about the home warranty policy for a property in Florida, read our "Q&A on real estate and purchasing a residential property in Florida": http://www.kijner.com/Q-A-Florida

If you are looking to purchase a home in Miami or Sarasota, Florida, contact Kijner & Sons International Realty: info@kijner.com

-- 

Sources:

The National Association of Realtors® (NAR)
American Home Shield, www.ahswarranty.com, REALTOR® Benefits Partner

Displaying blog entries 1-9 of 9

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Kijner & Sons International Realty
83-85 Boulevard de Charonne, 75011 Paris, France


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