SANDLAPPER Securities LLC, a full-service independent broker-dealer and dealer manager of investment products, launched a new focused venture called 1031 Replacement Property Solutions that allows accredited investors to access an inventory of available securitized 1031 replacement property options primarily for use when executing a 1031 tax deferred exchange. The new website serves as an online marketplace where investors can browse open real estate investments.
An Internal Revenue Code section 1031 exchange allows an investor of real property to defer any gains (or carry forward any losses) they have, as well as any recapture of previous depreciation deductions when they dispose of the asset, as long as the proceeds are used to acquire a new like-kind property within a specific period of time and under certain conditions. This exchange has long been a valuable tool for real estate and real property investors and business owners.
“When you consider how quickly 40+ percent of any gains can be eroded when selling an asset through the payment of federal and state taxes and depreciation recapture, having the ability to ‘defer’ those obligations with a 1031 exchange becomes a monumental tool for investors to maximize and redeploy monies into new investments,” said Sandlapper founder and chief executive officer Trevor Gordon.
According to the company, one of the major challenges of the 1031 exchange are the limited time parameters in which exchangers need to find and acquire suitable replacements.
1031 Replacement Property Solutions provides exchangers access to real property solutions that are available, suitable for immediate identification in an exchange and immediate investment by accredited investors, according to Sandlapper.
The company noted that only those replacement property offerings that have gone through their internal quantitative and qualitative due diligence processes will be listed on the site.
“We continue to see an increased need for replacement property choices, so this site was developed to provide access to a greater inventory of immediate opportunities and a vehicle to deliver property and offering-specific research and disclosure,” said Gordon. “The site also offers an access point to our professionals who can consult directly with the exchange investor on building perhaps a more broadly diversified portfolio using our inventory of undivided fractional interests suitable to hopefully meet both their exchange and investment needs.”
He added, “Many of our exchange clients are looking to invest proceeds that today constitute a great amount of their overall net worth, which in many cases came from a single asset. We can help them exchange those proceeds, maximizing their investable assets through the deferral of the taxable and recapture liabilities, into multiple replacement properties with the ability to diversify by asset class or geography, where suitable. This helps to reduce the overall investment risks they had with a prior lack of diversity.”
Founded in 2005, SANDLAPPER Securities is the flagship firm in the SANDLAPPER group of companies and is an independent securities brokerage firm with registered representatives located throughout the United States.