Why Exchanges
Why a 1031 Exchange?
Why do people exchange real estate?
- To pyramid their investment
- To recognize a profit
- To build an estate
- To increase cash flow
- To increase leverage
- To assemble several properties
- To reduce indebtedness
- To build equity through greater appreciation
- To increase amortization
- To consolidate holdings
- To upgrade size of investments
- To balance portfolio relative to risk or location
- To upgrade quality of investments
- To avoid capital gains tax
- To acquire more speculative property
- To acquire more conservative property
- To move geographically
- To generate cash
- To eliminate debt
- To change land/improvement ratio
- To achieve immediate income
- To achieve future income
- To assume management – earning greater yields
- To eliminate management – gain more time
- To change depreciation
- To broaden or maximize the market for their property
