Peregrine Private Capital - About 1031s - Learn About 1031s

Learn About 1031s

Growth in the TIC 1031 ownership sector has exploded with the many benefits of a 1031 Exchange arrangement. Here are answers to frequently asked questions.

What is a “1031 Exchange?”
1031s at a Glance
The Benefits of a 1031
How will a Tenant-in-Common (TIC) transaction benefit me?
Who has the expertise to help me?

What is a “1031 Exchange?”

The Internal Revenue Services defines the like-kind exchange:

"Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.

Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets."
Back to Top

1031s at a Glance

  • The property owner can sell certain property and then reinvest the proceeds in ownership of like-kind property and defer the capital gains taxes.
  • Property exchanges must be done within the rules of the tax code and the Treasury regulations.
  • Tax advantages may be significant for real estate buyers.
  • Commercial and investment properties qualify.

Back to Top

The Benefits of a 1031

  • Tax deferment
  • Property upgrade, change or consolidation
  • Elimination of time- or labor-intensive property management services
  • Diversification
  • Differences in regional growth or income potential.

Back to Top

How will a Tenant-in-Common (TIC) transaction benefit me?

Growth in the TIC 1031 ownership sector has exploded with the many benefits of a 1031 exchange arrangement. Simply, multiple investors invest in undivided fractional interests in real property by pooling their assets and benefiting from the efforts of others, such as through contracts concerning leasing, management and operation of the acquired property.
  • TIC ownership is a form of real estate ownership.
  • Two or more persons have undivided, ownership shares, which is not required to be equal.
  • Each co-investor receives an individual deed at closing for his or her undivided percentage interest in the entire property.
  • Owners of investment real estate are able to enjoy a commercial-type property with a lower or smaller investment.
  • Owned property can be exchanged for property that requires less hassle - less time and labor - to manage.

Back to Top

Who has the expertise to help me?

Your key contact
Robert S. Smith, MBA, of Peregrine Private Capital Corporation, is a registered representative of Concorde Investment Services, LLC, Member FINRA/SIPC

Robert specializes in helping people practice smart investing through, among other services, the retail distribution of tenant-in-common eligible properties.

Before founding Peregrine Private Capital Corporation, formerly Oregon 1031 Investments, Robert began his financial career as a consultant with Merrill Lynch, managing assets for the principals of Portland’s burgeoning athletic footwear industry. He holds a bachelor’s degree with honors from the University of Oregon, as well as a master’s degree from the Atkinson School at Willamette University.

Robert is a founding member of the Tenant-In-Common Association (TICA) and serves on the Ethics and Standards Committee. He helped shape TICA’s Code Of Ethics and Best Practice guidelines.

Links and Resources
Contact Us


Back to Top


Dynamic Content -powered by MightyMerchant v3.626    


IMPORTANT DISCLOSURE INFORMATION
This information is provided strictly as a courtesy. No information provided on this Web site or by any employee of Peregrine Private Capital Corporation shall be construed as promissory, or as any representation of past, current and future financial performance. None of the content herein shall be considered as advice or recommendation pertaining to financial advisement.

As with any investment in real estate, there are risks associated with TIC ownership, including:
1. Vacancy rates which can impact cash flow.
2. Fluctuations in the real estate market that impact the value of the property.
3. There are risks associated with the loss of a major tenant. Multiple tenant situations can mitigate, but will not eliminate, this risk.
4. There may be a loss of control since TIC ownership requires unanimous approval to take a major action, such as a re-finance or sale.
5. There is no known secondary market for TIC interests and therefore the investment is considered illiquid.

It is not possible to address all relevant risk factors in this forum. Risk factors are outlined in the Private Placement Memorandum for each offering. Investors should thoroughly understand all risk factors and discuss them with their financial representative prior to investing in a 1031/TIC offering.

We make no representation as to the completeness or accuracy of information provided on this Web site. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party information made available through this Web site. You assume total responsibility and risk for your use of this Web site and all others to which it links.

Additionally, when you visit links to any Web site provided here, you are leaving this Web site. We make no representation as to the completeness or accuracy of information provided at these third party Web sites, nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third party information.

The fact that a link has been provided to a site is NOT an endorsement, authorization, sponsorship, or affiliation by Peregrine Private Capital Corporation with respect to such site, its owners, or its providers.

Web Site Disclosure of State Registrations
The information included in this Web site is strictly intended for individuals residing in the states of Arizona, California, Colorado, Florida, Oregon, Texas, Virginia, and Washington.

Offers of investment products and services may not be made or accepted from any resident outside the specific states referenced. If you are not a resident of one of the states listed above, this site is not intended for your use.