There is a high demand for farmland, creating record high sales. The market is ripe with opportunity to get out while the getting is good and sell at the top of the market. With this option, you will most likely be subjected to huge fees in capital gain taxes. As licensed brokers, we are able to guide you through the process to help you preserve your wealth by deferring your capital gains. By selling your labor-intense farmland and completing a 1031 Tax Deferred Exchange, it can turn into a net-leased investment property with little to no landlord responsibilities, allowing you to defer the capital gains for investment into a cash-flowing netleased property.
Net-Leased Investment Properties are sometimes called arm-chair investments, and mirror property leasing agreements to corporate clients such as Walgreens , McDonalds, and Starbucks. This type of arrangement will allow you to keep your property but also lease it to a corporate entity with little to no oversight. The client is responsible for a number of property-related items such as property taxes, insurance, maintenance, and repairs. These leases often run for 10 to 30 years, with the option of being longer, while you enjoy the benefits of having a check deposited every month.
Our diverse real estate experience in handling these transactions will help you in listing your property, selling the land to coordinate the 1031 tax deferred exchange, and the location, negotiation, and acquisition of your new net-leased property. 1031 tax deferred exchanges are time sensitive and have strict timelines that must be followed to gain the maximum benefit available. Working with a variety of brokers, escrows, and other elements can be time consuming and complicated. Having a knowledgeable broker on your side who understands the intricacies of farmland to handle this unique and specialized niche transaction is not only beneficial, but will protect your investment and wealth, and help you to achieve your personal financial goals.