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Delaware seems to be the perfect combination of appreciation, return, and safety. There are enough reasons to substantiate that. Check out the top reasons that make choosing a replacement property in Delaware for a 1031 Exchange a very lucrative deal – Why Do A 1031 Exchange In Delaware? • Assured rent by local US government, making it a safe investment option. • House prices in Delaware are one of the most inexpensive in the country since the last recession. • Huge potential for appreciation since Delaware housing hit lowest in 2012 and now continues to rise. • You can get a much higher return on investment due to low house prices since 2007 and stable rental rates with government housing demand. • Delaware also has the lowest property holding costs such as repairs, insurance, and property tax. • ZERO Sales Tax on goods and services for anything purchased in Delaware. • The cost of living in Delaware is meagre if compared to any other state, attracting lots of stu...

                                                                                          Prove your intent The first thing the IRS examines in a 1031 exchange is your intent. The intent with which you purchase a property and use it plays a significant role in determining whether or not you will qualify for a 1031 exchange. Properties utilized for personal use don't qualify for a 1031 exchange. Only those properties that are held for use in trade, business, or investment purposes are eligible for a 1031 exchange. What does the 'Safe Harbor Rule' say? In 2008, the IRS included the safe harbor rule to the initial tax code. The rule states that so long as the investor adheres to 1031 exchange guidelines, the IRS will not question whether a dwelling unit ...

What is TIC or Tenancy-in-common? A TIC investment offers ownership in a real estate where two or more investors share an undivided, fractional interest in the asset. The shares of each investor in a TIC are not required to be equal, and ownership interests can also be inherited. Under a TIC arrangement, each co-owner receives a single deed at the time of closing for their undivided percentage of interest in the entire property. A TIC investor exercises the same rights and benefits as any sole owner of a property without the burden of managing the property. A TIC investment can either be privately arranged by investors or could be a syndicated TIC arrangement where a uniform set of rules apply to all investors. Most of the syndicated TICs are viewed as securities under federal security law. Why should I do a TIC 1031 Exchange? TIC investment is for investors who want to own institutional-grade investment properties that are managed by professionals, like office...

What is Tenants-in-Common? Tenant-in-Common (TIC) is a type of ownership in which investors receive undivided fractional interest in larger properties, similar to DSTs, but with fewer limitations attached to the property. Accredited investors who want potential appreciation through an add-on asset, not caring about current income and diversification, should invest in TIC properties. The minimum investment for TIC 1031 Exchange Properties starts as low as $1M. How Does It Work? Many real estate agencies structures and help investors do a 1031 exchange into TIC properties. These properties are viewed as top-ups that can either substantially enhance the condition of property following an acquisition, redevelop the asset, or work through renegotiating leases. No more than 35 investors are allowed in a TIC agreement. Generally, TIC properties differ from one another in terms of property type and investment strategy of the real estate agency handling the TIC. Benefits of Tenan...