Build a bridge over troubled waters
The US lost 8 million jobs in this recession. Rents are down and vacancy rates have soared. Over a trillion dollars of bad loans are coming to the market in the next few years. Hundreds of banks are projected to disappear. Ride out the storm by using net lease property to store value and recurring cash flow.
Diversify from real estate to bonds on a tax-deferred basis
Effectively replace real estate exposure with a corporate bond. Low leverage property leased to highly rated credit tenants offer the opportunity to 1031 exchange higher risk real estate into a long term bond equivalent security. This can be powerful personal financial and tax planning if used appropriately. This type of bond equivalent property also can allow for enhanced liquidity with improved access to the credit markets to raise cash levels.
Debt Component to a multi-property exchange
Replace the debt component of a multi-property 1031 exchange with 10% equity or even less and free up surplus exchange cash to acquire other unleveraged real estate with value added potential in a multi-property exchange.