[ ABOVE: This building and land in Florida were acquired by Sandlapper Capital with the intent to resell it to 1031 investors. The building’s tenant is a roofing company. ]
Greenville-based Sandlapper Securities LLC has launched a new venture, 1031 Replacement Property Solutions, and its website, 1031RPS.com, as an online marketplace for investors to access available securitized 1031 replacement property options, primarily for use when executing a 1031 tax-deferred exchange.
An Internal Revenue Code §1031 exchange allows an investor of real property to defer any gains (or carry forward any losses), as well as any recapture of previous depreciation deductions when they dispose of such assets. The proceeds must be used to acquire new “like-kind” real property assets within a specific period of time and under certain conditions.
The exchange has long been a tool for real estate and real property investors and business owners.
“When you consider how quickly 40-plus percent of any gains can be eroded when selling an asset through the payment of federal and state taxes and depreciation recapture, having the ability to ‘defer’ those obligations with a 1031 exchange becomes a monumental tool for investors to maximize and redeploy monies into new investments,” said Sandlapper founder and CEO Trevor L. Gordon.
One of the major challenges of the 1031 exchange is the limited time in which “exchangers” need to find and acquire suitable replacements.
1031RPS provides exchangers access to real property solutions that are available and suitable for immediate identification in an exchange and immediate investment by accredited investors. Only those replacement property offerings that have gone through Sandlapper’s internal quantitative and qualitative due diligence processes will be listed on the site, company officials said.
“We continue to see an increased need for replacement property choices, so this site was developed to provide access to a greater inventory of immediate opportunities and a vehicle to deliver property and offering-specific research and disclosure,” Gordon said.
Founded in 2005, Sandlapper Securities is the flagship firm in the Sandlapper Group of Companies and is an independent securities brokerage with registered representatives throughout the United States.