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Investing In Real Estate Foreclosures
There were more than a million foreclosed or "distressed" properties that hit the market this past year. And about the same amount or maybe more will be going on the market this year. These homes come in all shapes and sizes from two bedroom cottages to million dollar mansions. While the big banks may own a large majority of them and may be preparing to sell most of them at auction, the majority of them, in fact the best of the lot will be sold many months before the auction date.
Let's talk 1031 Exchange
There is a section in the US Tax Code that deals with an investor being able to sell a property and to reinvest the proceeds in a new property and in the process deferring all capital gains taxes on that sale. This is what is called the IRC section 1031. "No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which Is to be held either for productive use in a trade or business or for investment.

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