Those who aren’t in the real estate business may have never even heard the term “1031 exchange,” but that doesn’t necessarily mean it is of no use to you. In particular, a 1031 Exchange could be particularly useful if you’re planning to sell one investment property and purchase another.
To be clear, the 1031 exchange, or “like-kind exchange,” must follow strict rules set forth by the Internal Revenue Service. (Check with your tax attorney and/or your CPA to determine what these rules are.)
A very important concept to understand as part of home ownership is the importance of home title insurance. An owner’s title policy protects the buyer, as opposed to lender’s title insurance. As the name implies, the latter provides coverage only to the lender. If a title’s chain of ownership is challenged this difference can be a very significant distinction.
The current real estate market is increasingly turning toward investment in potential cash-flowing properties – and your raw land may exhibit great potential for buyers.
If you’re interested in selling land, you already have the advantage of a ripe market. However, investors are looking for specific characteristics when seeking out new opportunities.