1031 Replacement Properties
A 1031 exchange offers real estate investors the opportunity to defer paying these taxes by reinvesting their equity in one or more investment properties.
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DST 1031 PROPERTIESDiversify Your 1031 Exchange Equity
A customized approach to real estate Investing.
NL1031 was formed to provide a customized approach to real estate investors and their advisors by leading a coordinated strategy for unique solutions in the disposition of their real estate in a tax efficient manner. The firm brings four decades of experience in the investment industry with a specialized focus in real estate. Specialties include: 1031 exchanges, DST, UPREIT, Triple Net Lease Real Estate, Private Equity and Family Offices. NL1031 works closely with attorneys, CPAs and real estate professionals to advise real estate owners on 1031 replacement options.
Delaware Statutory Trust (DST)
DST investments are “packaged” by a Sponsor who is responsible for all property management, asset management and property operations.
Tenants-In- Common (TIC)
The 1031 TIC structure allows multiple investors to enjoy the 1031 tax deferral benefits of directly investing in a property as tenants-in-common.
1031 Exchange Property Types
A §1031 Exchange is a valuable tax strategy for those selling and buying real estate for investment. Whenever a business or investment property is sold and there is a gain, generally the person selling the property has to pay taxes on the gain at the time of sale. IRC §1031 provides an exception and allows payment of the tax on the gain to be deferred if the seller reinvests the proceeds in a like-kind property as part of a qualifying §1031 Exchange. By exchanging one property for another, the property owner can defer federal and state* capital gains taxes, leaving greater net profits for reinvestment. In addition to improving cash flow, §1031 Exchanges also allow investors to shift an investment from one geographic region to another, trade older properties for newer ones, leverage existing equity, and diversify, improve and/or increase a real estate portfolio.
Founder
Mark R. Baran - Founder and President
Mark Baran formed Net Lease 1031 in 2018 after serving in senior roles of several prominent national real estate organizations. Prior to Net Lease 1031 he was the Co-Founder of Four Springs Capital, LLC where he originally led the Capital Markets Group since its formation in 2008 before specializing in the 1031 DST tax deferred division of the firm during which he advised investors, accountants and attorneys throughout the country. Mark has more than thirty years of experience in real estate, investment management and private equity including senior roles in real estate at JMB Realty and Boston Capital. Prior to Four Springs Capital, LLC, Mark advised high net worth investors, family offices and foundations at Neuberger Berman, Nicholas Applegate, State Street Research and Spencer Trask Ventures as well as Yale University raising funds for the Yale endowment. Mark currently serves on the Council of Advisors for the National Foundation for Cancer Research and is the former chairman of its investment committee. He is also the founder of Swim4TheCure and has been active in various community and alumni organizations at Yale University and in Greenwich Connecticut. Mark received a BA from Yale University where he studied architecture and administrative science and earned a CIMA designation at the Wharton School at the University of Pennsylvania.
About Us
1031 Exchange Investments
With a 1031 exchange, real estate investors can defer their capital gains tax on the sale of a property if they reinvest the proceeds in another qualifying property under the Internal Revenue Code Section 1031.
Alternative Investments
1031? DST? TIC? UPREIT? Net Lease 1031 can help with all of these. Please contact us to request a list of our 1031 Exchange NNN, DST and TIC offerings.
Diversified Property Listings
We offer pre-vetted investment opportunities with full transparency. Our listings include industrial, medical, office and retail properties. Contact us for more details.
Experienced Management Team
Our team of seasoned industry veterans can help you with all your 1031 exchnage needs.
Stringent Due Diligence
NL1031 works closely with attorneys, tax and real estate professionals to advise real estate owners on 1031 replacement options.
1031 Exchange Advantages
A 1031 Exchange, also known as a tax-deferred exchange, is a common, fairly straightforward strategy that affords significant tax advantages to commercial property owners.
Dispositions of real property are taxable in the year in which you sell the property, but employing a 1031 Exchange defers that taxable event.
Delaware Statutory Trust (DST) and Tenant in Common (TIC) investments allow the smaller investor to access larger institutional-grade properties with the tremendous advantage of tax deferral via a 1031 exchange.
Another advantage of doing a 1031 exchange is consolidation. Investors can exchange multiple properties into one larger investment property that is easier to manage.
Cash flow and overall income can both be increased through a 1031 tax-deferred exchange. For example, a vacant parcel of land that generates no cash flow or depreciation benefits can be exchanged for a commercial building that does.
Every situation is unique when considering the advantages of a 1031 exchange, and it is always advised that the taxpayer consult with his or her tax advisors before making any decisions.
NET LEASE 1031 REAL ESTATE
1031 Exchange Rules:
45 Days
Identify the replacement property(s) within 45 days of the date of sale
180 Days
Complete purchase of new property(s) within 180 days from the date of sale
Tax Status
The buyer of the replacement property must be the same legal entity as the seller
Cash
A Qualified Intermediary must hold the proceeds during an exchange
Price Paid
All funds from original sale must be reinvested in a replacement property(s)
Debt
Mortgage amount on the new property must equal or more than mortgage paid off at sale
Specifics of 1031 Real Estate
You can now invest in commercial real estate properties that were previously hard to find and even more challenging to access. NL1031 works closely with attorneys, tax and real estate professionals to advise real estate owners on 1031 replacement options.
Deferred 1031 exchanges are the same as any 1031 exchange, except they come with some additional restrictions. Says the IRS, “The first limit is that you have 45 days from the date you sell the relinquished property to identify potential replacement properties. The identification must be in writing, signed by you and delivered to a person involved in the exchange like the seller of the replacement property or the qualified intermediary. However, notice to your attorney, real estate agent, accountant or similar persons acting as your agent is not sufficient.” But even with the deferment, the whole property exchange must be completed no later than 180 days after the sale. To facilitate this transaction, investors often use qualified intermediaries, commonly known as 1031 Accommodators, to facilitate the exchange. 1031 Accommodators typically know the ropes and many specialize in 1031 exchanges. You cannot act as your own accommodator, nor can your real estate agent, broker, banker, accountant or attorney.
Like-kind refers to the type of property being exchanged. You can exchange any investment real estate for any other type of investment real estate – for example, vacant land can be exchanged for rental property. In most cases your personal residence is not a like-kind investment property. In addition, you can often exchange one property into multiple properties. The three-property rule allows for an exchange into three separate properties which can provide for diversification of your capital.
A triple net lease, also referred to as an NNN lease, is quite different than a traditional lease. With this type of lease, a tenant is responsible for paying for property taxes, building maintenance and insurance, in addition to the rent.
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Greenwich, CT 06830