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Welcome to Vesta Strategies! |
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Vesta is not your typical 1031 exchange company. We understand that your investment is special and unique; just like a precious gem. Many of our clients tell us that their properties are like diamonds in the rough; holding extraordinary value and potential. We want to help you bring out and preserve this value by making the very best decision when it comes to this treasure, not only for today but for generations to come. You are invited to call us at our National Toll Free Number (888) 212-1031 where we will assign a personable Vesta representative to you at no cost or obligation.
You need the best of all worlds in order to make the most informed decision. When you work with our company, you will have access to a top notch group of experts including seasoned real estate professionals, CPAs and attorneys. All this is available to you at no cost. Our desire is simply to provide you with the best information available so that you can make an informed decision. We have often found that having access to all of these professionals and being able to coordinate their efforts can be at times impossible. That is why we have assembled this special team to act in concert as your trusted advisor. "As a commercial real estate broker and principal, I've completed 1031 exchanges with dozens of different Accommodators. For my money, Vesta Strategies is the best." Patrick Wakeman
Vesta has a strong background in the exchange industry with decades of real world experience handling every available exchange method for investors nationwide. Vesta represents the collaboration of real estate and tax experts. Vesta leads the exchange industry by providing licensed tax attorneys and CPA’s on staff. This means that we will guide you effortlessly through the exchange process and have the resources available to assist you every step of the way. "My broker didn't know anything about 1031 exchanges. It was so scary to be dealing with the tax laws and latest guidelines. I had peace of mind when I handed the transaction over to Vesta. I knew I was in good hands." Si Tran
Our clients benefit from our relationship with America’s premier regional banks and investment institutions. These strategic relationships give our clients flexibility in completing their exchange while providing them with world-class service. This service is combined with our meticulous accounting system ensuring that your transaction is handled safely and accurately. Personal It is our commitment at Vesta that our valued clients remain in control of their investment strategies. Vesta Strategies achieves this through a diverse, multi-lingual support staff; dedicated and ready to answer your questions and concerns. With regional and branch offices throughout the country, your Vesta representative is readily accessible when, and where you need them. "I don't have much experience dealing with 1031 exchanges and it's good to know that when I have a problem or question, help is just one phone call away---whether it be in the evening or on the weekend. I appreciate excellent and reliable service." "I just wanted to write and say "Thank You" for the fantastic service we received from your company...It was the most complicated one yet; exchanging one lot into 5 properties with 3 parties involved in different aspects of each property. Your team made the exchange as simple as possible and followed up with phone calls and emails throughout the process. I plan on using you for all my exchanges and recommending you for all of my clients. Thanks again." Gary Fogleman, Owner How Can a §1031 Exchange Benefit You? The 1031 exchange process allows owners of investment property to diversify their real estate assets. An investor can choose to sell a small investment property for a larger property or vice versa. Investment property owners also have the option to exchange one property for several properties or merge several properties into one. Investors can achieve geographical diversity by exchanging their real estate holdings anywhere in the United States. There are many choices and opportunities available and Vesta will help find the best fit for you. What is a §1031 Tax-Deferred Exchange? §1031 Exchange is one of the oldest standing tax laws in the country. Tax-Deferred Exchanges were first introduced in 1921 allowing owners of investment property to defer the payment of capital gains associated with the sale of these properties. This procedure is outlined under the Internal Revenue Code Section 1031, and involves a series of rules and regulations that must be met in order to take full advantage of this great tax benefit. As a Qualified Intermediary, Vesta has a complete understanding of everything that is involved in utilizing this section of the code and will walk you effortlessly through this process. What are the Advantages of a 1031 Exchange? Tax Savings: A 1031 exchange allows you to exchange your property for another and defer the payment of federal and state capital gains taxes. This allows you to preserve your hard-earned equity and in effect, reinvest the tax you owe as an interest-free, no-term loan from the government.
There are many different types of exchanges afforded to you under the §1031 Exchange. Knowing which one is right for you will depend on your particular needs. Be assured that whatever those needs are, your Vesta Strategies advisor has the experience and expertise you can rely on. Types Of Exchanges Delayed Exchange The most commonly used exchange is the Delayed Exchange, which is also known as the Starker exchange. The process of a Delayed Exchange begins upon the close-of-escrow of the relinquished property. From that close, you will have a maximum of 45 days to identify up to three potential properties that you wish to exchange for. After the 45-day period, you have an additional 135 days to complete the purchase of one or all three of those properties identified. Vesta provides you with all the documentation and guidance to help make this process hassle free. To find out more about the time periods, click here! Simultaneous Exchange You may consider a Simultaneous Exchange if you have already identified a property or properties you wish to exchange for prior to the closing of escrow of the relinquished property. In this scenario, the two properties will be exchanged concurrently. Because some risks and timing complications may arise, investors typically call on a Qualified Intermediary such as Vesta for assistance in doing this type of transaction. By doing so, an exchangor avoids the possibility of having their exchange disallowed due to having unrestricted control (constructive receipt) of the proceeds from the property sold. Therefore, when you work with Vesta, we will act on your behalf as the controller of these proceeds as you complete the legal process. However, you will still maintain full discretion of how the proceeds are handled. You can rest assured that we will prudently and effectively manage your funds with the help of our strategic banking partners and detailed accounting system. Improvement Exchange/Build-To-Suit Often, the investor will want to make improvements to the replacement property and have the cost of the improvements included in the exchange value of the replacement property. The improvements may consist of repairs or remodeling of an existing building, or the construction of a new building on raw land. It is important to know that all improvements should be completed and the exchange estate dispersed within the 180-day time period. As a result, these types of exchanges have to allow for certain uncalculated risks to arise, advance planning is critical in conducting an Improvement/Build-To-Suit Exchange. Our knowledgeable consultants are not only experienced in handling this type of an exchange but will also make sure your plans for this exchange are carried out in the most efficient manner. Reverse Exchange A reverse exchange offers unique advantages for Exchangors who want to find a replacement property before they sell the investment property they currently own. This legal procedure was expanded upon and new revenue procedures were added in October of 2000. An Exchangor can now purchase the desired property without the time restrictions found under other types of exchanges. Vesta will help you by acquiring title to that new property, allowing enough time for the old one to close. We will essentially hold on to that property until you are ready to make the exchange. Please see "Reverse Exchanges - A Brief Overview" for more details. "Many of the investors don't know all the rules and they get confused with the number of days and types of properties to exchange...Vesta saved one of my deals and had the exchange documents drafted in less than two hours on the same day as closing! I know I can count on Vesta." Uyen Tu, Escrow Officer As with any real estate investment transaction, there are important rules you must follow. In a 1031 exchange, there are specific time periods in which certain elements of the exchange must be completed. This is where the benefit of having a trusted advisor makes a world of a difference. Your Vesta advisor will carefully and personally guide you through the specific deadlines, resulting in a seamless transaction. Time Period Table
45 Day Time Period An exchangor has 45 calendar days from the close of escrow on the relinquished property to identify up to three investment properties. Certain restrictions apply if an exchangor would like to identify more than three properties and they should first contact Vesta for details. How to Identify Exchange Property An exchangor formally identifies replacement property by submitting a written form to Vesta indicating each property they intend to purchase. This form can be mailed, hand delivered, or faxed to Vesta’s office. The exchangor may also choose to identify additional properties that they would consider to be in "back up" position. Call Vesta for details. 180 Day Time Period Once the 45-day time period has lapsed, the exchangor has an additional 135 days to close on any and all replacement properties. The combined 45 days to identify and an additional 135 days to close constitute a total of 180 days to complete an exchange transaction. *Please take note that if you close escrow on the sale of your investment property after October 15th, you will need to file a tax extension to use the full 180 day benefit. Reverse Exchange: A Brief Overview "My first §1031 Transaction was done with Vesta Strategies, LLC. Our most recent exchange involved a "1031 reverse exchange." We are now completing the final stages of that sale. As always, all their questions are being answered, their paperwork delivered to title on time, allowing a seamless close of escrow. Everything was timely and in order. My clients are very impressed with your extensive knowledge and ability to facilitate all their needs. Thanks again to you and your awesome staff! It is a pleasure doing business with you." Diane Pereira, Bailey Properties What Is A Reverse Exchange? A reverse exchange is used when an investment property owner wants to buy the replacement property before selling their existing property; while qualifying their transaction under the Internal Revenue Code Section 1031 When To Do A Reverse Exchange? There are several uses for a reverse exchange here are a few common reasons: 1. The Property that you are interested in is unique and is only available for purchase now. The seller of that property is not willing to wait for you to sell your existing property.
2. The property that you want is a deal of a lifetime. The price is right. The expenses involved are relatively small compared to the potential upside of the completed transaction.
3. An owner of investment property wants to sell their existing property and do an exchange but does not want to worry about finding replacement property under any time restraints. With a reverse exchange the time periods don’t begin until the replacement property closes. How To Do A Reverse Exchange Step 1 The investment property owner enters into a contract to buy the replacement property the same way as is customary in their area. Step 2 The seller of the replacement property is made aware that the sale of the property will involve a reverse exchange but that it will NOT delay the closing. A clause should be written into the contract stating: "This contract is subject to a reverse exchange per Revenue Procedure 2000-37. Seller agrees to cooperate with this procedure at no cost to them."Step 3 Vesta prepares the necessary agreements and creates an independent tax entity. The agreements assign the purchase contract to the new entity. This new entity will take title to the replacement property and close escrow. Step 4 The new entity holds on to the property until the existing property is sold. The maximum time the new entity can hold the property is 180 days from the close of escrow on the replacement property. Step 5 The existing property is sold and a simultaneous exchange occurs between the investment property owner and the new entity. This completes the exchange process. Financing Issues Funds to close the transaction can come from various sources such as: 1. Cash savings 2. Cash advances on credit lines 3. Direct lending where the guarantor of the note is the investment property owner The Reverse Exchange Procedures The information described above is simply a brief overview of the new provisions and is not intended to provide a complete or comprehensive coverage of the revenue procedures. All taxpayers should consult with their tax and legal advisors regarding their particular circumstances. As with any specific area of real estate law, tax deferred exchanges under IRC §1031 have their own language, which may be confusing to those who are unfamiliar with these transactions. As always, your friendly and knowledgeable Vesta professional is just a phone call away! Tax Deferred Exchange Terminology You can reach us in several different ways. Contact us through our National Toll Free Number at (888) 212-1031 or email us at info@vestastrategies.com. You can also stop by one of our local friendly offices. Give us a call at our National Toll Free Number and we will help you find the office closest to you. Branch Offices: Northern California Tennessee North Carolina Illinois
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