A Powerful Strategy For Exchangors and Their Clients

The 1031 Exchange sector – like much of the real estate industry – is in transition. The unprecedented scale of the historic worldwide “Liquidity Crunch" affecting the economy here in the first decade of the 21st century, places a premium on dealmaking skill-sets like never before.

Nothing makes you look better to a client than having the right answer at the right time. Understanding how to create liquidity, when there is none, is now critical in helping restore confidence in the American economy, and mitigating the growing recession – before it reaches catastrophic heights.

Experienced real estate investors (and their professional advisers) who practice creative deal structuring techniques as a primary focus of their business (such as members of the Society of Exchange Counselors, the National Council of Exchangors, and CCIM's)… have long understood the powerful advantages available to creative investment strategies by way of IRC Sec. 1031 Tax Deferred Exchanges, and IRC Sec. 453 Installment Sales.

1031 Exchange professionals also realize that these dealmaking strategies become even more powerful during the tight-money cycles that regularly occur in the American economy.

What they may not be fully aware of is how the skilled and calculated use of the Illinois-type Title-Holding Trust adds yet another powerful dealmaking catalyst to the Exchangor's arsenal, often providing more flexible “catalytic" solutions for enhancing many types of Exchanges, as well offering more powerful options to Installment Sales or “wraps".

Real estate investors often need to think outside of the box and look for creative solutions when trying to sell 1031 investment property. This is much more critical in challenging real estate markets – and perhaps none more challenging than today’s “deleveraging" credit environment. Now, more than any time in the past 70 years, most prospective buyers are facing great difficulty in obtaining financing for the purchase of 1031 investments.