Trade-In Your Property Through R.J. GULLO’s
1031 Trade-In Program

“1031 Trade-In Program Designed For The 21st Century Investor”

By: Russell J. Gullo, CCIM, CEA

Are you the owner of an income-producing or investment-held property? Are you tired of the day-to-day management headaches that are associated with your property? Do you like the financial benefits and have built a sizable amount of equity in your property through equity-build-up and appreciation over the years? But you can’t afford to sell because of your large gain (profit) and the tax consequences that you would pay? Would you like to receive the financial rewards of owning part of an investment grade property, without the day-to-day management headaches?

Today, this is possible through a tool designed by the R. J. GULLO COMPANIES, called the “R. J. GULLO’s 1031 Trade-In Program”. This program is structured using both Section “1031” of the Internal Revenue Code, which allows owners of income-producing or investment-held property the opportunity to PAY NO TAX when disposing of property. Along with Revenue Procedure 2002-22 individuals can take their equity (net proceeds) when performing a “1031 exchange” and use the funds from the relinquished property being disposed of to acquire a part of a professional management-free investment grade property, without being involved in the day-to-day activities of ownership.

This program allows owners who own either one or many scattered income-producing or investment-held properties to consolidate their equity and use it to acquire a part of a passive property such as a large apartment community or a NNN leased single tenant property like a Walgreens or CVS property. This concept is known as a T.I.C. (Tenant-In-Common Ownership) investment. A TIC sponsor is responsible for finding, acquiring and operating the property that will be owned by a hand full of other co-owners that want to benefit from the financial rewards without being involved in the day-to-day management. As a co-owner you receive an undivided interest in the property and receive a deed for the your portion of ownership.

One of the biggest advantage of this program is that we are able to guarantee ownership in the new T.I.C. (replacement property) without having your relinquished property either sold or on the market. That’s right, we are able to place you into ownership of the new T.I.C. property before disposing of your relinquished property and can arrange for the interim financing of the new acquisition without having the equity from the relinquished properties. In addition, we can also arrange for the sale of the relinquished property or properties after the fact, through the “R. J. GULLO’S 1031 Trade-In Program”.

This concept eliminates the issues of timing, trying to bring together the structuring of the “1031 exchange period, eliminates the problem of not having the equity from the relinquished properties if not sold yet, and eliminates the problem of not having a buyer for the relinquished property yet. A conventional “1031deferred exchange”, meaning a sale of the relinquished property and then the purchase of the replacement property, also works with this “R. J. GULLO’s 1031 Trade-In Program”.

So, if you would like to participate in being able to acquire part of an investment grade property that you would not be able to own on your own because of the size of the asset, and leave the day-to-day management activities to a professional management company, and don’t have to worry about having a buyer for your relinquished property or the funds to acquire part of a T.I.C. property, then the “R. J. GULLO’s 1031 Trade-In Program” could be exactly what the doctor ordered.

Russell J. Gullo, CCIM, CEA, is a certified exchange advisor, president of R. J. GULLO & CO., INC., which is a national “qualified intermediary” for real estate exchanges, and chief executive officer, of the R. J. GULLO COMPANIES of real estate investment services. In addition, he is director of operations of the RUSSELL J. GULLO School of Real Estate Investment Studies, founder of the AMERICAN INSTITUTE OF REAL ESTATE EXCHANGORS and president of the Buffalo Investors & Exchangors Group (B.I.E.G.). Mr. Gullo can be reached at (716) 675-1500, (866) R J GULLO

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