1031/Real Estate

At Dream Catcher Financial, we specialize in providing 1031 replacement properties in the form of Tenants in Common (TIC). Each strategic partner that we deal with has it's own niche, such as apartments, industrial, office buildings, and retail, and presents opportunities throughout the United States.

What is a 1031 Tax-Deferred Property Exchange?

A 1031 exchange can be a financial planning tool that utilizes Section 1031 of the IRS code. It can allow a property owner to sell investment or business real estate and defer 100% of the capital gains tax by replacing it with “like kind” net leased replacement property. The IRS defines “like kind” property as any real property held for business or investment purpose. A 1031 exchange into net leased property can convert taxes into assets generating annual income yields.

Types of Exchanges: One example of an exchange is a delayed exchange. This is a three-way exchange in which an intermediary, usually a title company or escrow agent, facilitates the transaction.

Qualified Intermediaries with experience in this area are available to assure a proper exchange takes place.

An investor should examine the suitability of this type of investment in the context of his or her needs, investment goals, and financial capabilities. Each should make his own independent decision as to the suitability and risk versus potential gain or loss.

Investors should also consult a personal attorney, accountant, or business/tax advisor about the risks and merits of this type of investment. See Risk Factors below.

Risk Factors

There can be substantial risk associated with federal and state income tax aspects of a 1031 exchange. You should always consult with your own tax advisor with respect to all tax risks and issues relating to a purchase of replacement property interest for a tax deferred exchange.

There can be substantial risks associated with investments in real estate and should only be purchased by persons familiar with such risks. Accordingly, prospective investors should, prior to purchase, consult with their own legal, tax, and financial advisors.

The information contained within this website regarding TIC, 1031 or Direct Participation Program investments does not constitute an offer to sell any securities, which will only be made pursuant to a duly authorized confidential private offering memorandum. The information contained within this website is not intended to be a description of all the material factors an investor should consider before investing. Prior to making any investment decision, prospective investors should carefully review the confidential private offering memorandum. Some investments, including limited partnership, may not be suitable for all investors, redemption may be for more or less than the original amount invested, the investment is illiquid, there are special risks associated with investing in real estate, and there is no assurance that all or any of the investment objectives can or will be achieved. Further, Dream Catcher Financial Services is not providing tax advice to any prospective investor, and each prospective investor is urged to consult its own tax advisors.