A 1031 Exchange can Save You Money on Taxes

 There are many great Phoenix area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a Market Analysis so you know what buyers will pay for your home in today's market. You may also call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions.

What is a 1031 Exchange?

Today I have Dave Tornell with me to tell us about what a 1031 Exchange is and how it could affect you and your real estate endeavors in Phoenix.

A 1031 Exchange is a section of the tax code that allows investors of investment properties to defer their taxes when they sell. This is the simplest form of it. Broadly stated, a 1031 exchange is a swap of one business or investment asset for another. Although most swaps are taxable, if you come within 1031, you’ll either have no tax or limited tax due at the time of the exchange.

So, when you sell your residential rental, commercial property or land, the IRS gives you the benefit of deferring your taxes if you use a 1031 Exchange. 

As far as the transaction goes, it's a regular real estate transaction except prior to the close of Escrow, you have to arrange a 1031 exchange with a company like Dave's (IPX 1031). Once you set up a 1031 exchange agreement, the proceeds from the sale of the property are set up into an account instead of being given to the seller. This account is held for the investor by a qualified intermediary (which is required by regulations) until a replacement property is found. 

A client has 180 days to purchase a new property from the close of Escrow on their property, and has 45 days from the sale of their former property. 

There are some rules you have to follow when doing 1031 Exchanges, but the big benefit is that you can save 15-30%.

However, primary homes, secondary homes, and vacation properties do not qualify for 1031 Exchanges. Fix-and-flip properties do not qualify either. However, you can use this exchange for land that you own or on residential rental properties. Anything held for investment or anything used for business can qualify for a 1031. 

There is a lot more information that we could continue talking about, but we don't want to keep you all day. If you want to reach Dave for more information, you can call him at (602) 793-1558 or email him at david.tornell@ipx1031.com. We highly recommend Dave and his company to any of our clients here in Phoenix.

In the meantime, more information on 1031 Exchanges can be found here: http://www.1031.org/about1031/faq.htm

As always, if you need any assistance buying or selling in Phoenix, please contact me and I would be glad to speak with you. If you need any more information on 1031 Exchanges, please feel free to call me.

Let us Find the Right Financing Plan for You

There are many great Phoenix area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a Market Analysis so you know what buyers will pay for your home in today's market. You may also call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I am here with my preferred lender, Tom Ross, and we are going to be talking about some typical loans that you might run into. We want you to be prepared to make informed decisions when you decide to participate in the Phoenix real estate market.

First off, there are 4 main loan types: FHA financing, conventional, VA financing, and there is also jumbo financing. 

1. FHA Loans: This loan requires the smallest minimum down payment of 3.5%. It will cap at $271,050 dollars, so buy whatever you want, but you're going to have to put down whatever it takes to get to that $271,000 mark. 
2. Conventional Loans: You can get this financing for as little as 5% down. The loan amount is up to $417,000 dollars, and the cost of conventional mortgage insurance at 5% down is typically cheaper than FHA mortgage insurance. 
• With a 680 credit score, conventional should come out to cheaper monthly payments than FHA. If your credit score is under 680, FHA may be the best way to go.
3. VA Loans: This is Tom's favorite loan product because they have a $417,000 dollar loan amount for 100% financing. There is no mortgage insurance and you also get better rates than conventional loans. They also have a great jumbo loan product available. 
4. Jumbo Loans: If you're in a situation where you need to finance a house that is worth more than $417,000 dollars, you will generally need to put down at least 20%. There are also other products that will get you in there for 10% down.

Hopefully this information has been helpful to you. If you have any questions about loans, then please give Tom a call at (602) 791-5861 or email him at tom.ross@novahomeloans.com. I refer all of our clients to him, and they are always satisfied with his services.

As always, if you have any comments or questions, please feel free to contact me. I am always willing to help with any of your Phoenix real estate needs.

Use my Free Home Assessment to Prepare for a Seller's Market

There are many great Phoenix area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a Market Analysis so you know what buyers will pay for your home in today's market. You may also call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions.

Greetings from Scottsdale, Arizona! It is 85 degrees and sunny here as April rolls in and the market here is getting as hot as the weather. April is actually our best month here for selling homes. This is because it is absolutely gorgeous outside.

So with that being said, I want to give you an idea of what's happening in our market right now as traffic begins to increase during this month.

• From MLS statistics, we can see that there are 5 months worth of inventory here. 
• This will give us a neutral market, so buyers and sellers will have equal opportunities to get great deals.
• What I foresee happening in the next 30-60 days: 
• Buyer demand will increase rapidly this spring / summer.
• This will create a seller's market.
• With this in mind, I want to give you an opportunity to find out what your home is worth. 
• Whether you're just curious or if you're serious about selling, now is the time to find out, because the market is moving very quickly right now and you'll be left behind if you wait. 
• Luckily, I have a free home assessment on my website for you to use. 

You will see a banner below that will be asking you what your home is worth. Fill that out for me and include any information about whether you have had your home remodeled or any other new construction done in the recent past. 

So, if you're looking to purchase or sell a property in the Scottsdale area, then please contact me because I would be glad to help you out. Our performance will outsell any promises out there. You can call me at (602) 413-8195 or email me at Monique@MoniqueSells.com