Q: Are you telling me that there is an alternative to a painful and expensive foreclosure proceeding with my Lender?
Answer : Yes, utilizing the provisions in full compliance with IRC 1031 Section which allows a deferral of tax liability through a 1031 Exchange and Investment Grade Tenant NNN assets.
Q: Are you telling me that, in addition, to losing my property and my equity investment, that the Internal Revenue Code determines that the “Relief of Debt”, even under a possible commercial foreclosure, is a taxable event?
Answer : Yes, cancellation of debt can be a taxable event; plus there is an additional potential liability which relates to a recapture of depreciation.
Q: In a difficult set of facts, how can I approach a better solution?
Answer : You can consider an innovative solution which combines two investment and wealth preservation strategies: Using a 1031 Exchange to defer possible tax liability and leveraging the credit of an investment grade corporate tenant to provide a somewhat miraculous solution, in a commercial foreclosure context, with a very low down payment. This can serve as a very effective solution for a difficult set of circumstances, like a possible commercial foreclosure.
Q: How does a Reverse Exchange work?
Answer : First, we have a consultation with you to determine what your current best strategy may be in conjunction with your own legal and accounting professionals. Then, you determine that we can add value to your dilemma; and with one of our select group of Qualified Intermediaries who play a crucial role in documenting and directing us through this process for full IRC 1031 Compliance. ForecloseWithEase.com can provide the investment grade net leased asset whose characteristics allow this strategy to be a viable and highly leveraged solution for a troubling situation like a commercial foreclosure.
Q: What do I need to do to get started in this solution?
Answer : The proper organization, planning and execution of such a strategy must be executed like a close order military drill when facing a commercial foreclosure in this environment. ForecloseWithEase.com was founded for the sole purpose of providing the team of professionals to guide you through this process.
Q: OK, how much time do I need and what is it going to cost?
Answer : Planning is the key. The process from start to finish can be accomplished in 120-150 days. Your jurisdiction will provide the overall timeline for execution.
Fees are structured with full transparency and we can provide a menu of services for your review.
Q: Is that an all inclusive, one stop shop price? Are there hidden extra fees?
Answer : There are no hidden fees. There are predictable and reasonable legal fees; QI fees for your Reverse Exchange; possibly some lender’s legal; and a ForecloseWithEase.com Advisory fee of 1%.