Friday, June 1, 2007

1031 Real Estate Into Stocks or Bonds?

I have some very exciting news I want to share with you this week regarding a new product available through First Horizon that may help you sell more real estate. First Horizon has been working for the past several years to develop a way for clients to sell their property and do a 1031 tax free exchange into the stock or bond market, and avoid paying Capital Gains tax. This is because many investors, for whatever reason, are at the end of the line in their current real estate investing, and want a way to switch their real estate investment into the stock market, without paying Capital Gains Tax. This is something that has been very difficult to accomplish because of the IRS’s definition of a like kind exchange, but very recently we have been able to develop a fund that will allow this to happen, that is acceptable to the IRS. This means that now we have put a mechanism in place whereby clients selling rental property, that don’t want to reinvest their money into new rental property, can now 1031 into a type of mutual fund with First Horizon. This is valuable to you as an agent, because I am sure you have run into clients that didn’t want to list their property to sell because they dreaded the thought of paying Capital Gains. Now those clients can list their property with you, and sell and 1031 into this Mutual Fund with First Horizon, and avoid the Capital Gains Tax. The Mutual Fund then pays the client a 6% per year dividend, and they will also receive a rate of return on their investment when they sell their shares of the mutual fund. I will be sending more information out on this program as we receive the flyers, etc., but I wanted to give you a quick introduction to let you know it was there in case it could help you with any of your current client situations. Feel free to shoot me an e-mail, or give me a call with any questions. Always available 207-2665

Shane Cook
Senior Mortgage Specialist
800-256-7887/Cell 252-207-2665


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