Agents and Brokers
You’ve probably heard more than one presentation from a QI about deferment of capital gains taxes and the mechanics of a typical delayed exchange. Based on our experience of delivering presentations to a number of commercial brokerage firms around the country, we are pretty sure of the following:
- Reverse exchanges are not well understood by most agents and brokers. Many Clients attempting to invest effectively in today’s difficult real estate market need to be aware of all the tools at their disposal, especially those that can increase their economic benefits and favorably control the timing of their transactions.
- A reverse exchange is a vastly superior approach for most investors in commercial real estate (especially if the properties are income producing) because it can increase tax deferment potential, increase Return on Investment and give them tools to better manage the timing of transactions and the utilization of assets.
- There are distinct advantages for you if your Client does a reverse based on your suggestion — not the least of which is the increased potential to represent your Client for both the Replacement Property acquisition and the Relinquished Property sale.