Why Would You Use a Reverse 1031 Exchange? - 05/31/08 09:31 PM
The real estate market has changed considerably over the last few years, even the last few months, with the residential real property market getting especially hit hard.  And, with the commercial real estate market beginning to show signs of weakness, the investor must rethink his or her strategy when it comes to investing in rental properties or investment properties. 
The amount of real property inventory on the market has increased significantly because properties are taking much longer to sell.  There has also been a significant increase in the number of foreclosure, deed-in-lieu of foreclosure and short sale transactions with bankrupcties right … (0 comments)

Does a True Reverse Exchange Qualify? - 05/31/08 08:53 PM
First, what is a "true reverse exchange?" 
Reverse Exchange
The reverse exchange allows a real estate investor to acquire his or her like-kind replacement property first and then subsequently dispose of (sell) his or her relinquished property later provided he or she comply with the specific 1031 exchange deadlines. 
True Reverse Exchange
A true reverse exchange refers to a transaction that is structured such that the real estate investor would acquire and actually take title to the desired like-kind replacement property.  This would result in the real estate investor owning both the relinquished property that has not been sold yet at … (0 comments)

Reporting Your 1031 Exchange for Federal Income Tax Purposes - 05/31/08 07:32 PM
It is well past the deadline to file your personal income tax return for the 2007 income tax year.  You should have filed it by April 15, 2008 unless you filed for an extension of time to file. 
Receiving Lots of Income Tax Related Questions
However, I have been receiving a lot of calls over the last few weeks from taxpayers as well as income tax advisors and preparers asking when and how to report their 1031 exchange transaction on their income tax returns.  So, we clearly have a lot of people operating under an extension of time to file their … (0 comments)

West Los Angeles 1031 Exchange Workshop - 05/30/08 09:02 PM
1031 Exchange Seminar
See all of our 1031 exchange seminar programs.
Basic to Intermediate Level 1031 Exchange Seminar
This is a basic to intermediate level workshop on forward, reverse and improvement (build-to-suit or construction) tax-deferred, like-kind exchange transactions pursuant to Section 1031 of the Internal Revenue Code and Section 1.1031 of the Treasury Regulations.
Educational Workshop Content
The educational workshop will begin with an introduction to various tax-deferral and tax-exclusion strategies, including combining Section 1031 with Section 121.  The discussions will focus on the requirements, structures, processes, strategies, and compliance issues necessary to successfully complete a tax-deferred, like-kind exchange transaction.  We … (0 comments)

It's 3:00 AM in the morning.....Will Your 1031 Exchange 1031 exchange Qualified Intermediary Pick Up The Phone? - 05/30/08 08:59 PM
ITS OUT! 
Our most recent issue of The Exeter Exchange newsletter (Volume II,  Issue I) is out in hardcopy and PDF formats.  The Exeter ExchangeTM newsletter is written, produced and distributed by Exeter 1031 Exchange Services, LLC for the educational benefit of its clients and their Realtors and professional advisors. 
You can obtain a hardcopy of The Exeter ExchangeTM by contacting any of our national branch offices or by downloading it from our website at http://www.exeter1031.com/The_exchange_Newsletter_Archives.aspx.
Volume II Issue I Topics Include: It's 3:00 in the morning...Will your QI pick up the telephone? New standards for choosing a provider. Ten key questions to ask when … (0 comments)

Domestic Terrorism? - 05/28/08 11:21 AM
I have been in the real estate industry, specifically in the 1031 exchange industry as a Qualified Intermediary, for almost 24 years.  This is my third major real estate market cycle that I have gone through. 
You Will Success If You Keep Your Cool
The one thing that I have always noticed is that those who keep their cool make out really well during the real estate market cycle's progress and always end up surviving and coming out in a better position than they were before and those that panic usually make mistakes and come out much worse at the end … (8 comments)

Need Access to 1031 Exchange Experts Anytime 24/7 - 05/23/08 09:34 PM
At Exeter, we thought so, too. 
You just never know when a 1031 exchange related question or issue pops up and seems to be getting in the way of completing a real estate transaction.  It can be so refreshing to know there is a 1031 exchange Qualified Intermediary that you can turn to 24 hours a day, 7 days a week, 365 days a year.
We Have The 1031 Exchange Answers You're Looking For. Go Ahead, Ask.
Our senior 1031 exchange specialists are always available to answer your 1031 exchange related questions no matter how technical or complicated they might be.  … (5 comments)

Happy Memorial Day Weekend to the Rainers Family - 05/23/08 05:02 PM
I know this is going to be a busy weekend for many of you, or at least I hope it is shaping up to be a busy and profitable real estate weekend for you.
Best Wishes for a Busy and Profitable Memorial Day Weekend
Our 1031 exchange volume at Exeter 1031 Exchange Services, LLC has continued to slowly increase since late February, so we continue to think that we have seen the bottom of the market in terms of transaction activity.  I think we still have about 12 to 18 months before we come close to the bottom of the market … (4 comments)

DRE Credit 1031 Exchange Workshop for Realtors in Los Angeles - 05/22/08 09:31 PM
1031 Exchange Seminar
See all of our 1031 exchange seminar programs.
Basic to Intermediate Level 1031 Exchange Seminar
This is a basic to intermediate level workshop on forward, reverse and improvement (build-to-suit or construction) tax-deferred, like-kind exchange transactions pursuant to Section 1031 of the Internal Revenue Code and Section 1.1031 of the Treasury Regulations.
Educational Workshop Content
The educational workshop will begin with an introduction to various tax-deferral and tax-exclusion strategies, including combining Section 1031 with Section 121.  The discussions will focus on the requirements, structures, processes, strategies, and compliance issues necessary to successfully complete a tax-deferred, like-kind exchange transaction.  We … (2 comments)

10 Questions to Ask a Prospective 1031 Exchange Company (Qualified Intermediary) - 05/17/08 06:11 PM
This is a follow-up to my recent post today regarding things to consider when choosing a 1031 exchange qualified intermediary entitled It's 3:00 AM. Will your QI Answer The Phone? 
Ten Questions to Ask When Choosing a 1031 Exchange Qualified Intermediary
A little due diligence can pay off when you ask the right questions before choosing your 1031 exchange Qualified Intermediary. We offer the following questions as a service to our readers:
Are you an independent QI or are you affiliated ("captive") with another business?
This may or may not be significant, but it could reveal a broader agenda for securing other … (0 comments)

It's 3:00 AM Will Your 1031 Exchange Qualified Intermediary Pick Up The Phone? - 05/17/08 05:52 PM
It's 3:00 a.m.  Will your 1031 exchange Qualified Intermediary answer the phone?
We can't always choose when an idea or a burning question will pop into our heads. And it's not unusual for that to happen after one's head has hit the pillow and the light is switched off. 
"If I could only call now," one laments, "I have to know or I won't rest."
How many of your vendors and business partners would pick up the telephone in the middle of the night ready to answer a question or take on a new challenge? In a global economy where business is … (0 comments)

Have We Just Gone And Taken A Stupid Pill? - 05/17/08 04:40 PM
I was speaking with a 1031 exchange client yesterday regarding their real estate portfolio.  He has a number of single family residential investment properties as well as his primary residence.  His primary residence is underwater by about $200,000.00 and he was looking for advice on what to do about it. 
I initially thought that he was having financial trouble with his entire portfolio.  So, my first line of questioning was centered around what his goals and objectives were and what was the status of the other investment properties in his protfolio.  He said that he was not having financial troubles and … (17 comments)

Recession? Don't Jump To Conclusions So Fast! - 05/16/08 11:48 PM
There has been a lot of talk lately about whether we are in a recesion, heading for a recession or might even avoid a recession.  We certainly have a weakening economy, especially in the real estate world, but I do not believe that we are in a recession. 
Recession Took a Detour
The Wall Street Journal posted an article on Wednesday, May 14th, 2008 entitled "Recession?  Not So Fast, Say Some."  It leads in with "A funny thing happened to the economy on its way to recession: It's taken a detour." 
Growing Number of Economists Doubt Recession
This is the view … (8 comments)

A Job Well Done! Accolades From A Tough Critic! - 05/16/08 03:54 PM
I received the following email from an escrow officer complimenting us on our service.  This particular escrow officer is an exceptionally talented, exceptionally technical, and exceptionally brilliant certified senior escrow officer, so to receive this compliment for Maureen Brown and Shelby Shoemake on our 1031 exchange team was saying quite a bit.
I had to share it with everyone and to congratulate Maureen and Shelby on an exceptional job (as always). 
 
JUST A SPECIAL NOTE.
Since I starting doing these [1031 exchange] TIC escrows, I have been dealing with every QI in the country, and believe me "all QI's … (8 comments)

1031 Exchanges with Real Estate AND Personal Property Blog Post No. 1 in a Series - 05/14/08 12:04 AM
I've been writing and speaking on 1031 exchange related topics for almost 24 years now and it still amazes me at how many taxpayers really do not understand what a 1031 exchange is, what type of investment property qualifies, what the requirements are and how to properly structure them.  Hence the existence of my blog. 
Personal Property and 1031 Exchanges
The one area that always seems to amaze and surprise my audience is the fact that personal property held for investment also qualifies for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code. 
Qualified property does not have to … (2 comments)

Happy Mother's Day - 05/10/08 11:58 PM
We often take our Mothers for granted.  I see it all the time.  And, I know that I have been guilty of this as well.  I look back at my life and realize what a great job she did in raising me, and I realized that I need to tell her this tomorrow when we get together for her Mother's Day brunch. 
Don't forget to tell your Mother how much you appreciate her. 
… (8 comments)

Structuring 1031 Exchanges with Seller Carry Back Notes or Seller Financing - 05/10/08 11:52 PM
The real estate markets have certainly changed over the last 12 to 18 months.  Sellers and buyers alike have been forced to think outside of the box and get more creative in order to structure and close their real estate transactions.
Mortgage Industry and Capital Markets
The tightening of underwriting criteria used by lenders, the disappearance of the capital markets, and collapse of many mortgage banking firms combined with the ever changing and increasingly volatile interest rates, have changed the real estate market for quite sometime to come. 
Seller Carry Back Notes or Seller Financing
These changes have prompted a significant … (0 comments)

Real Estate Propery Management for SFR and Multifamily Properties to be Discussed on The Exeter Group RE Talk Radio - 05/10/08 11:37 PM
What do you do once you have purchased your investment property?  How do you take care of them?  How do you manage them, or maybe more important, who do you have manage them.  This can be a very important issue once you have purchased your rental or investment property. 
The management of the property is critical to the successful outcome of your rental or investment property, and can significantly affect your month cash flow.  Andrew Schlesier with Utopia Management, Inc. will help discuss the various property management issues that you should be aware. 
The Exeter Group Real Estate Talk Radio ShowTM
The … (0 comments)

History of TIC Investment Properties to be Discussed on The Exeter Group RE Talk Radio - 05/10/08 11:31 PM
There has been lots of talk about tenant-in-common investment properties, or also referred to as TIC investment properties for short, since the Internal Revenue Service issued Revenue Procedure 2002-22 in March 2002. 
We thought that an historical perspective might be useful so that you can learn where TIC investment properties came from and how they developed over time, so we will be covering this over the next few months by discussing this with a number of guest experts. 
The Exeter Group Real Estate Talk Radio ShowTM
The Exeter Group Real Estate Talk Radio ShowTM is live each and every Monday from 12:00 … (0 comments)

San Diego Association of Realtors (SDAR) Annual Expo - 05/08/08 10:09 PM
There has been plenty of advertising regarding the San Diego Association of Realtor's (SDARs) Annual Real Estate Expo that starts tomorrow, Friday, May 9, 2008, but just in case you had not seen the promotional pieces and had forgotten, I thought I would make a quick blog post.
The SDAR Annual Real Estate Expo is held at the San Diego Convention Center.  There are lots of educational programs as well as trade show exhibits.  You can pick-up new ideas for building and managing your real estate busienss.  Exeter 1031 Exchange Services, LLC will be exhibiting like it has for many years.  … (2 comments)

You're Invited to Earn 2 Hours of DRE Credit on Tuesday in San Diego, CA - 05/05/08 10:37 PM
Our in depth 1031 exchange program is tomorrow, Tuesday, May 6th, 2008.  I will be presenting an in depth look at the requirements, structures, processes, strategies, and compliance issues necessary to successfully complete a 1031 exchange transaction. 
Realtors can earn 2.0 hours of California Department of Real Estate continuing education credits for attending this 1031 exchange seminar.  You can visit http://www.exeterco.com/1031_exchange_seminar_san_diego.html for more complete details and to RSVP. 
Investors and other advisors are welcome, too.  We also offer 2.0 hours of CE credit for CPAs and CFPs.  I look forward to meeting you personally. 
… (0 comments)

Happy Cinco de Mayo (almost belated) - 05/05/08 10:30 PM
Hello ACTIVE RAINERS,
Happy Cinco de Mayo! 
I was so busy today that I almost forgot to wish everyone a Happy Cinco de Mayo.  What a great day to celebrate the fiesta of Mexico.  Cinco de Mayo is one of my favorite annual holidays because I love the food, I love visiting with the people of Mexico and I love the scuba diving in Mexico, especially in Cozumel. 
So, Happy Cinco de Mayo.  May your fiesta be fun, happy and safe. 
… (2 comments)

Increase in Reverse 1031 Exchange Activity - 05/04/08 12:57 PM
We expected to see a drop in reverse 1031 exchange activity during this real estate market downturn, but we were surprised to actually experience an increase in reverse 1031 exchange transaction volume.
Sale and Purchase Scheduled to Close Concurrently
What we found is that investors were putting both properties under contract.  They were putting their relinquished properties under contract and contracting for their like-kind replacement properties that they intend to acquire as part of their 1031 exchange transaction.  Their intention of course was to close both properties as close together as possible (note: you must close on your relinquished property first unless you wish to … (7 comments)

Fellow Rainer to Discuss Seller Carry Back Notes on The Exeter Group Real Estate Talk Radio Show - 05/03/08 01:43 PM
Seller carry back notes or seller financing has once again become a hot topic.  Creative financing had become a thing of the past with all of the "easy money" or "easy loans" with "easy qualifying."  As we all know, times have changed and "easy money" is long gone. 
Buyers/Borrowers now have to actually qualify for financing.  Imagine that!  What a unique concept.  Anyway, I digress.  So, sellers are now forced to think in more creative terms and seller carry back notes or seller financing has resurfaced once again. 
We had FELLOW RAINER Dawn Rickabaugh on The Exeter Group Real Estate Talk Radio Show last month and received … (4 comments)

Difficult Real Estate Markets Call For Creative Thinking and Creative Financing - 05/03/08 12:27 AM
Seller Carry Back Notes or Seller Financing
Creative financing had dropped off quite a bit over the last few years given the lending environment and "easy money" or "easy qualifing."  The real estate market has of course changed quite a bit and the "easy financing" days are well behind us. 
So, what do sellers do now?  They have to get more creative in structuring their transactions.  It a buyer's market, so transactions have to be structured to assist (read encourage) the buyer to buy.  Naturally, the seller carry back notes have made a comeback.  We are seeing much more creative financing … (6 comments)

Not Just Another 1031 Exchange Seminar; Its An Advisory Meeting - 05/01/08 09:28 PM
We listened to our clients and their advisors.  They told us that most 1031 exchange seminars were too shallow and superficial.  They indicated that most of the speakers and/or programs would cover the basics of 1031 exchanges, but not get into the nitty gritty.  They wanted to ask more questions, but the venue and set-up was just not conducive to do so.  And, they said they did not want to attend any more 1031 exchange/tenant-in-common investment property seminar combinations - they wanted to learn more in depth material and strategies about 1031 exchanges. 
Not Just Another 1031 Exchange Seminar
We heard you.  We … (2 comments)