Austin, TX (PRWEB) September 07, 2016
Realized, a technology-enabled financial services firm specializing in complex 1031 exchange transactions, today announced the full launch of an innovative real estate technology platform that streamlines the process of finding, evaluating, purchasing and managing 1031 exchange replacement properties. The virtual marketplace allows individual investors that are selling any size property to easily diversify their holdings into multi-million dollar real estate portfolios sponsored by the nation’s top real estate companies.
Considering its ability to defer capital gains taxes – which often amount to 30 to 40 percent of an investor’s profits – the 1031 exchange is a powerful vehicle for building long-term wealth, though it comes with its own set of stringent IRS requirements. The rules stipulate that a real estate investor must identify potential properties to reinvest in, just 45 days after selling a property.
“The strict 45-day deadline and competitive real estate market leave investors with less than $2 million of 1031 equity in a dire position, choosing between reinvesting in small local properties that don’t fit their lifestyle and investment objectives, or facing a significant tax bill,” said David Wieland, Realized co-founder and CEO. “This is precisely the problem that Realized solves.”
The Realized platform simplifies the 1031 process, reducing the time, expense and risks inherent in re-investing in properties through a “like-kind” exchange. The secure online marketplace allows 1031 investors to pool their capital and co-invest in diversified portfolios of institutional-quality properties. Investors can conveniently compare investment opportunities across the U.S., consult with the company’s expert team, co-invest in properties, and monitor their investment performance online, from anywhere. The platform uses algorithms designed to offer each investor high-quality educational resources and tools based on their unique needs, experience and objectives.
“Our technology makes the process of finding, evaluating and reinvesting in institutional-quality replacement properties efficient, but it’s only part of the Realized solution,” said Wieland. “The real value for investors is the unlimited, free, one-on-one, offline investment support from our team of experts in real estate, tax and finance. Collectively, the Realized team has assisted more than one thousand individuals and families to co-invest some portion of their 1031 equity into high-quality, exchange-eligible investments."
For top real estate operators, Realized represents a new source of attractively priced, passive, long-term capital. Building on IRS data, the company projects that individual investors will execute 285,000 like-kind exchanges in 2016 – a figure that represents $67 billion in 1031 equity from investors seeking lower-risk, stable cash flow properties. The Realized team has successfully structured, financed and syndicated nearly $1 billion in 1031-qualified investments using the Delaware Statutory Trust (DST) structure. Backed by 60 years and $5 billion of successful real capital markets experience, Realized understands real estate and the importance of alignment of interests, so both investors and operators share in the success.
“Our platform connects investors to properties and sponsors, increasing transparency and reducing costs. All 1031 investors now have access to the expertise and tools to make smart exchange investments that can offer attractive returns and eliminate all landlord duties along the way,” said Wieland. “We believe this is the first step in making fractional 1031 investments through DSTs a mainstream financial product that will have wide-ranging benefits for the next generation of investors and retirees.”
Realized sees strong potential for collaboration with other trusted professional services providers. Working with Realized, real estate brokers, accountants, attorneys and investment advisors can help their customers successfully navigate one of the most profitable and complex transactions at their disposal while creating new revenue opportunities and differentiation from competitors.
Founded in 2014, Realized forms the missing link between 1031 exchange investors seeking long-term, passive income, and seasoned real estate operators seeking capital for high-quality investment properties. Realized is based in Austin, Texas. For more information, please visit http://www.realized1031.com.