CHARLES H. HARRIS & ASSOCIATES (Established 1960)

Whether you deal in multi-million dollar real estate transactions or are investing money in residential rental properties for the first time, we can provide any or all of the following:

Develop a Plan of Action
Provide Real Estate Financial Analysis 
Locate Property (can also help you sell your current property)
Buyer or Seller Representation
1031 Exchange Availability (see below for further information on how to free up more equity and make it grow for your new property investment)
Financing
Land Development Consulting and Services
Real Estate Consultation Services

We will help you make your investment in real estate a lucrative decision and will work with your attorneys and tax professionals as part of a team working for you. 

Please call Thomas Kennedy, V.P. Real Estate Acquisition, Sales and Financing for further information at 1-800-952-7233 or e-mail tek@chhassoc.com.

1031 Exchange

• Defer Capital Gains
• Use More of Your Equity to Create Wealth
• Reposition Assets and Reduce Return Volatility by Increasing the Number of Properties you Own 
• Increased Leverage
• Increased Depreciation Deduction
• Improve Cash Flow
• Defer Phantom Gain on Problem Properties
• Allow for Relocation

As an investor in either commercial or residential investment real estate, the ability to grow your equity and return on investment is limited by capital gains taxes when it comes time for you to liquidate your holdings. But what if you could safely liquidate your investment and reinvest the proceeds into a new property or properties without the tax consequences.

What a 1031 Exchange does is create wealth.

By deferring capital gains taxes on your relinquished property, you will have that much more to invest in your replacement property.  Let us say, as an example, that your current property is worth $1,000,000.00 with no debt and your original purchase of that property was $500,000.00 over twelve months ago, the capital gain would be $500,000.00 that would be subject to taxes, lowering your overall purchasing power for the replacement properties by your tax base and other factors.

You can use more of your own money by deferring the tax with a 1031 Exchange.

You can also diversify your replacement property by investing in other areas in California, like San Joaquin County. Using the above $1,000,000.00, let us say that this relinquished property was in Los Angeles or San Francisco and the property was one apartment building, you could buy multiple properties in San Joaquin County for that and increasing your income, asset base and wealth while diversifying your financial risk.

This is where we come in. San Joaquin County is one of the fastest growing areas in California and has plenty of land.

Some things we can do for you on a 1031 exchange:

• We can handle both the sale of the relinquished property and the purchase of the replacement property.
• We can handle the financing for your replacement property and if the buyer of your relinquished property needs financing we can handle that too.
• We will help you locate replacement property meeting your financial objectives and the requirements of the 1031 Exchange.
• We can help you and/or your employees find homes and financing if you plan to relocate operations.
• We will provide access to a Qualified Intermediary to handle the Exchange or you may choose your own.
• We will work with the Exchange conduit to insure the requirements of the 1031 Exchange are met.
• We can provide other services specially tailored to your specific needs.

The Exchange process is very specific and strict. There can be complications for instance if you were to refinance with cash out before or after an exchange. Under certain circumstances this can create a taxable event. You also have only a maximum of 180 days to acquire the replacement property (or until the tax filing deadline, including extensions, for the year of the sale of the relinquished property). You also have only 45 days from the sale of the relinquished property to identify in writing, the identification of possible replacement properties, unless of course you can acquire all replacement properties within that 45 day identification period. There are numerous steps in the process, not mentioned, that must be undertaken to make a successful exchange. 

Please click below for the Internal Revenue Code pertaining to 1031 Exchanges and please complete the information request form below if you are interested in an exchange.

AS THIS IS HIGHLY COMPLEX AND THE ABOVE IS SUBJECT TO CHANGE, WE DO NOT ACT AS A QUALIFIED INTERMEDIARY, BUT AS A CONDUIT TO HELP IN THE REAL ESTATE TRANSACTION ITSELF.  PLEASE ENTER INTO A 1031 EXCHANGE WITH ADVICE ONLY FROM YOUR LEGAL AND/OR TAX PROFESSIONALS FOR THE LATEST IRS RULES AND HOW IT CAN BE BEST STRUCTURED FOR YOUR SPECIFIC NEEDS.  WE CAN HELP YOU FIND A QUALIFIED INTERMEDIARY IF YOU WISH.