June 1, 2009--San Diego, California--Exeter 1031 Exchange Services, LLC launched and trademarked the Zero Equity 1031 Exchange™ today, its newest addition to its portfolio of tax deferral and tax exclusion solutions. The Zero Equity 1031 Exchange™ offers investors the unique opportunity to continue to defer the payment of their depreciation recapture and/or capital gain taxes that are triggered by the forced sale of distressed investment properties even when there is no equity left in the properties.
With the economic downturn and the collapse of the real estate market, many investors have had both their income and their equity in their investment properties stripped away. Without the means to go on, they’re choosing to sell their property and structure a short sale or they’re losing their property through a foreclosure sale. For many, the greatest nightmare is still ahead since in spite of having no equity in their investment property, the forced sale of the property via a short sale or through a trustee's foreclosure sale may still trigger a sizable taxable gain.
"I’m hearing it everyday from the investors, lenders and real estate agents we work with — investors are feeling trapped. Their properties are no longer generating enough cash flow to service their debt load and the market value has plummeted well below what they owe their lender. They believe that without equity, they won’t be able to structure and successfully complete a 1031 exchange in order to defer their taxable gains and continue investing," said Kim Englert, Branch Manager, Irvine Branch Office, Exeter 1031 Exchange Services, LLC.
A Zero Equity 1031 Exchange™ lessens the pain for the investor even when there is no cash equity left in the property by allowing the investor to continue deferring his or her capital gain taxes by reinvesting in replacement property.
"We created this 1031 exchange solution in response to a demand in our marketplace. We believe that although not easy, an investor working with a sophisticated and experienced real estate broker may be able to negotiate and put together a creative acquisition package for replacement property," said William L. Exeter, President and Chief Executive Officer, Exeter 1031 Exchange Services, LLC.
A properly set up and completed Zero Equity 1031 Exchange™ may be able to get an investor out from under an existing problem property, defer the payment of their capital gain taxes, and put the investor in a better position in order to move forward with his or her life.
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Exeter 1031 Exchange Services, LLC is a leading national provider of Qualified Intermediary, Exchange Accommodation Titleholding, and Advisory services for individual, corporate and institutional 1031 exchange clients as well as cost segregation analysis services for commercial real estate investors.
Exeter administers all types of 1031 exchange transactions, including forward, reverse and improvement (build-to-suit or construction) 1031 exchange structures, in all 50 states. Exeter 1031 Exchange Services, LLC currently has national office locations in San Diego, Irvine, Ontario, Bakersfield, Fresno, and San Francisco, California and Kona, Hawaii, East Northport, New York, and Springfield, New Jersey.