1031 Exchange Zine

Introduction to 1031 Exchange Properties For Sale

 

When it comes to growing one's money there are different ways by which one can do so. It is said that the advantage of the rich is that they are well aware of these ways to grow the money that they have and that in turn makes them richer as a result.

 

If you want to grow your money you have to invest it at 1031gateway.com. This means that you put it in something that will make its value bigger. Putting your money in a savings account is not investing as money placed there loses value in the long run. The reason for this is the economic inflation rate. Common investment vehicles include stocks and mutual funds. Investing in stocks is a popular way to make your money grow. For example you bought a stock at a certain price at a certain time. After two years the price of that stock doubled . Then that means that your money doubled too. But of course investing in stocks and mutual funds come with risks. In order for you to manage the risk you have to research the companies whose stock you want to be included in your portfolio.

 

Another way by which people invest their money is to invest it in 1031Gateway real estate. Now this would of course involve a bigger amount of money. People make money here by buying a piece or real estate at a low price and then selling it for a higher price later on.

 

Now in real estate there is also what you call 1031 investment properties. These are the properties that are exchanged for another. It is called 1031 because you would find the details about it in IRC Section 1031. The properties that are exchanged are those that are only used in business. Those that are used as homes cannot be exchanged. So what are people interested in buying this kind of investment property? Well you see in the exchange there is no tax that needs to paid out to the government as long as there is no cash that was involved in the exchange. What this means is that if you have a property exchanged, you can sell it when its value goes up and then you save on capital gains tax because of that. That is why there are those who make investments in these type of properties. They want to pay a lower tax on these when they profit from it. For further details regarding 1031 exchange properties, go to http://www.ehow.com/about_6546257_1031-exchange-definition.html.