REAL ESTATE IS THE BEST INVESTMENT YOU CAN MAKE IN YOUR LIFETIME.
BUILD AND DIVERSIFY YOUR REAL ESTATE PORTFOLIO.
MAKE YOUR INVESTMENT GROW AND LAST.

 

Working to serve you

We strive to serve your financial interests throughout the city and state. We offer the highest quality professional experience and a friendly, comfortable environment in which to conduct very important real estate business – yours.

It is the little things that count

The quality of our services are unparalleled because of the unique relationship between our agents, our support staff and management. All of us work together to achieve your very personal goals. We are supported by leading technology, a wealth of expertise and resources, attention to detail, and follow-through, to make your real estate experience rewarding.

Real People

We are self-motivated, highly independent individuals with unique personalities and styles of working to suit our diverse clientele. Each agent is a member of the Greater San Francisco Association of Realtors, California Association of Realtors and National Association of Realtors.

Nothing succeeds like success

Our continued growth and success reflects our commitment to provide the highest quality real estate services to our customers, clients and community. We continue to be a sales leader in many of San Francisco’s diverse neighborhoods. We look forward to doing business with you on a long term basis.

1031 Exchanges

If you are considering a tax shelter, 1031 Exchange is probably one of the best kept secrets in the Internal Revenue Code. Some consider it as the most overlooked potential opportunity to avoid capital gains tax incurred upon the sale of real estate property. Both the general public and many professionals who are uninformed or misinformed have overlooked this tax shelter opportunity.

1031 Exchange provides that if a business or investment property is sold and another property is purchased to replace it within six months, then the sale/purchase can be structured to be tax-free. In San Francisco, many properties have more than doubled in value over the past three years. Consequently, any San Francisco property owner(s) wishing to sell their property and take advantage of this exceedingly strong market will likely face a large capital gains tax burden when they sell their property. Deferred exchanges can be a very useful tool to investors seeking a tax shelter from the capital gains associated with the current market value appreciation.

 

The Exchange Process

A typical tax deferred exchange is very similar to a taxable sale transaction except that prior to closing on the property being sold, the “Qualified Intermediary” is assigned into the Sale Contract and instructs the closer to transfer the Exchanger’s property to the buyer via direct deeding. The exchange proceeds (equity) are deposited into a separate exchange account to comply with the exchange requirement that the Exchanger is not in actual or constructive receipt of the funds at any time during the exchange. The exchange period begins with the transfer of the first property and allows the Exchanger 45 days to identify property and a total of 180 days to close on “like-kind” replacement property. The exchange is completed when the “Qualified Intermediary” is assigned into the Purchase Contract, uses the exchange proceeds to acquire the replacement property and instructs the closer to transfer ownership from the seller to the Exchanger via direct deeding.

Exchange Equal or Greater

NOTE: A “Qualified Intermediary” is a financial services group qualified with extensive legal experience qualified to process 1031 Exchanges and offers the size and financial strength necessary to ensure the security of the exchange process.

 

How to proceed with an exchange

• Always discuss the intended exchange first with your legal and/or tax advisor.
• Call the ‘Qualified Intermediary’ of your choice prior to transferring the relinquished property.
• The ‘Qualified Intermediary’ will produce the necessary exchange agreement and other exchange documentation.
• Once an offer is accepted on the relinquished property, start looking for replacement property.
• Always insert a ‘Cooperation Clause’ in the Sale and Purchase Contracts.
• Purchase equal or greater in net sales price (value).
• Reinvest all of the net equity in the replacement property.
• Obtain equal or greater debt on the replacement property.
  Exception: A reduction in debt can be offset with additional cash, however, increasing debt cannot offset a reduction in equity.

 

Sample Cooperation Clause for the Sales Contract

Buyer hereby acknowledges it is the intent of the Seller to effect an IRC §1031 tax deferred exchange, which will not delay the closing or cause additional expense to the Buyer. The Seller’s rights under this agreement may be assigned to _____(name of your Qualified Intermediary)______, a Qualified Intermediary, for the purpose of completing such an exchange. Buyer agrees to cooperate with the Seller and _____(name of your Qualified Intermediary)______ in a manner necessary to complete the exchange.

Leverage Your Buying Power

After purchasing your first property and increasing its value, it is time to take an analytical approach to your investment. You want it performing at its optimum capacity. Is it time to trade up? Is it time to refinance and buy another with the equity? Let us advise you.

Making Sure Your Investments Grow and Last

Real Estate investments have always been a way to guarantee that you won’t out live your money in retirement. Invest in an income producing property and your initial investment should generate a monthly check, become more valuable over time, and your initial investment wil be protected.

Exchange Liquidation Tax Advice

“If you are currently in a 1031 Exchange and are interested in liquidating, there are some options that could help. A qualified, defined-benefit plan may reduce overall tax liability, while also affording protection from creditors and lawsuits.” – Pete Harrigan, – Financial and Trust Specialist, Edward Martin and Co.

At InvestSF, we work with a group of pension and planning specialists, who can determine if this sort of strategy is appropriate for you.

Click here for more information on 1031 Exchange and Tax Law Updates