Santa Ana, CA - Feb 12, 2019 – While Section 1031 of IRC is incessantly benefitting real estate investors, the demand for experienced Qualified Intermediaries, which generally are real estate firms, has also seen a significant rise. As per the rules, in order to obtain the benefits of tax deferment through a 1031 exchange, an investor must involve a Qualified Intermediary. A Qualified Intermediary represents the parties involved in a 1031 exchange and is also responsible for carrying out the entire exchange. So, 1031 exchanges aren’t possible without the involvement of Qualified Intermediaries.
Real estate firms like Grubb and Ellis Realty Investors LLC and its contemporaries have helped a lot of investors over the years in successfully closing their tax-deferred exchanges. Headquartered in the Santa Ana city of the California state, Grubb and Ellis Realty Investors LLC deals in buying, selling, and managing multifamily properties, office spaces, and industrial properties. The company offers services related to almost all investment plans including property management, brokerage, and consultation. Founded in 1998, Grubb and Ellis Realty Investors LLC has successfully established a strong presence among its peers. As per the company’s policy makers, the firm is capable enough to pull off profit out of any investment.
While there are many things in 1031 exchanges that require an investor’s attention, the team of experienced financial advisors at Grubb and Ellis Realty Investors LLC believe that one requirement that needs extra attention is the time limitation. The reason is obvious. Upon successfully closing on the sale of the relinquished property, an investor gets a deadline of 45 days for identifying the potential replacement property. Also termed as ‘identification period’, these 45 days are extremely crucial as failing to identify the potential replacement property within this time frame will immediately cancel the exchange. Generally, investors get 180 days in total for every 1031 exchange they do. On account of missing any of the deadlines, investors shouldn’t expect any kind of extension from 1031 Corporations as there is no provision for extensions.

When it comes to the benefits that 1031 exchanges offer, it is evident that they aren’t limited to tax deferment only. 1031 exchanges also provide many other added benefits. For example, in a 1031 exchange, an investor can acquire a replacement property even if it is located in a different state. In other words, 1031 exchanges provide much-needed diversification to investors. Therefore, investors always have the opportunity to acquire properties that are built in more developed localities. This can also increase cash flow as properties situated in better locations will generate more revenue than the ones located in the outskirts.

Grubb and Ellis Realty Investors LLC also has a solution for investors, who are looking to get rid of the burden of property management. The solution to this is ‘NNN leases’. A NNN lease requires the tenant to pay additional property expenses along with the base rent. Therefore, expenses like insurance, property taxes, and maintenance cost, which usually are the liabilities of a landlord, become the responsibility of the tenant under a NNN lease arrangement. Since the tenant of a property is required to pay for its maintenance, properties leased under NNN leases generally have low base rent as compared to ones that are leased under a gross lease.