Why exchange into long-term leases as §1031 Replacement Properties?
Many real estate investors have accumulated substantial real estate portfolios over a period of many years. In many instances, these investors have completed a §1031 tax deferred exchange into Replacement Properties. The exchange transaction has allowed them to eliminate the payment of capital gain taxes and roll equities into larger and better performing properties. Now that investors have met many of their long-term investment objectives, they desire to increase their monthly cash flow and simultaneously reduce the management problems typically associated with most real estate investments. An ideal solution is to exchange into a net leasehold interest, providing excellent cash flow with fewer responsibilities associated with the ongoing management of the property.
