West Los Angeles-based online real estate investing platform RealtyMogul has launched a 1031 concierge program, designed to offer investors a curated selection of 1031 exchange-eligible properties and hand-hold clients through the process.
“Real estate is super expensive to sell,” Stephen Haskell, vice president at RealtyMogul, said. “When you sell a piece of real estate, especially when most of our clients have held their real estate for 10, 20, 30, 40 (years), sometimes generations, you’re going to have state income tax, federal income tax, you have capital gains tax, you have something called recapture of depreciation. It could be 30% to 40% cost on your sales price that you just immediately give to Uncle Sam.”
Popular among the commercial real estate market, a 1031 exchange allows real estate investors to swap one property for another and defer capital gains taxes. It’s a way to avoid taxation by preserving assets within a family, although the property must be used for business or investment purposes only and must adhere to a series of strict IRS guidelines.
Haskell was brought in to spearhead the company’s new concierge program. He joins RealtyMogul after seven years as a senior vice president at Torrance-based Kay Properties and Investments, and before that, as an officer in the U.S. Air Force. He heavily attributes his time in the military to his ability to take risks and operate under high levels of stress.
In his new role, Haskell will oversee educating how to go about participating in a 1031 exchange and strategizing varied solutions for different types of investors – whether it be to help a client diversify their portfolio or get out of active property management.
“The biggest challenge and complexity to 1031 exchanges is finding a good property to buy in just 45 days,” he said. “Because you have escrow, you have negotiations, you have due diligence, you have third party reports, inspections, appraisals, all that, and…
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