In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Broadway
After a period of service as a rental, landlords can choose to sell their property. Nesbitt Realty is a full service brokerage and we have successfully and quickly sold many rental properties at best market value for our former property management clients in Broadway.
If you decide you would like to sell your property, Contact us and we'll begin by preparing a comparative market analysis to help figure out what your rental unit will likely bring if sold. We'll also prepare estimated proceeds so you know how much you'll actually make after the settlement.
What is a 1031 Tax Exchange and how can it benefit me?
A 1031 Tax Exchange is usually of greatest benefit to landlords in Broadway that have held property for a longer period of time (more than ten years). Thanks to IRC Section 1031, a properly structured 1031 exchange allows a landlord to sell a property, to reinvest the proceeds in a new rental and to defer all capital gain taxes. IRC Section 1031 (a)(1) states:
“No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment.”
To understand the powerful protection a 1031 exchange offers, consider the following examples:
- An investor has a $100,000 capital gain and incurs a tax liability of approximately $35,000 in combined taxes (depreciation recapture, federal and state capital gain taxes) when the property is sold. Only $65,000 remains to reinvest in another property.
Assuming a 25% down payment and a 75% loan-to-value ratio, the seller would only be able to purchase a $260,000 new property. - If the same landlord chose to exchange, however, he or she would be able to reinvest the entire $100,000 of equity in the purchase of $400,000 in real estate, assuming the same down payment and loan-to-value ratios.
As the above example shows, exchanges shelter landlords from capital gain taxes as well as facilitating significant portfolio growth and increased return on investment. In order to access the full potential of these benefits, it is important to have a good working knowledge of the exchange process and the IRC. For instance, an accurate understanding of the key term “like-kind” can reveal possibilities that might have otherwise been overlooked.
What is a short-sale?
A short-sale happens when the seller sells a property for less than what is owed on the property. In the past, because of market contractions, some of our property owner clients have found themselves in an untenable situation with regards to their rental property. In those cases the best way out was often a short sale. Quite frankly, due to market expansion and inflation, this has not been much of an issue lately.
But, if you need it, members of our staff have CPDE (certified distressed property expert) training. We can clarify the ramifications of a short-sale help you decide if that choice is best for you and your rental property.
Should you understand more about our area?
Nesbitt Realty's Guide to Real Estate is a handy resource for anyone who hopes to find out more about Broadway and nearby areas. The Guide to Real Estate compiles facts regarding what has sold and what is on the market, and some interesting facts that you might not know. Also, our Guide spotlights quite a few of the aspects of residing in Broadway. Of course, all of this is interesting for buyers and sellers, but property owners and renters will also find the facts to be very informative.
Landlord Reference
a free source for property owners in Broadway
- Before you move a tenant into your property in Broadway
- Collections and evictions
- Communications with the renter
- During the lease term
- End of lease term and what happens when a tenant breaks the lease
- How does the owner get paid?
- How your management company handles the association and your community
- How your property management company handles utilities
- How we find renters
- Insurance matters for landlords using our property management
- How Nesbitt Management handles keys
- Broadway owner responsibilities
- Maintenance, repairs & inspections for your rental investment in Broadway
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your property
- When property owners don't yet know their new address
- Vetting tenants in Broadway