EXIT STRATEGIES FOR THE REAL ESTATE INVESTOR…
SDISSM stands for Self Directed Installment Sale. The SDISSM is a specially designed, long term, capital gains deferred installment sale of your appreciated property in which you retain substantial control over the installment sale process. The reason the sale is referred to as “self-directed”, is because of the considerable control you have over the installment sale process. In addition, the SDISSM eliminates the risks and pitfalls of a traditional installment sale. The SDISSM insures that an outside buyer pays cash into the SDISSM, which in turn insures that capital is available and secure to pay you for the appreciated property through installment sale payments.
A Self Directed Installment Sale enables you to eliminate the risks of the traditional installment sale and places you in control over the transaction and payments. The SDISSM also enables you to receive the benefits of capital gains and depreciation deferral while eliminating the risks from the buyer.
NOTE: The failure rate of 1031 Exchanges is around 15 percent, or $23 billion annually.
*Source: NAFEP; FEA, Aug 2007 -Letter to FTC Source: Los Angeles Business Journal, Nov 26, 2001 • by Christopher Keough
The 1031 Rescue is a tax compliant strategy that, in the event that their 1031 Exchange fails, the 1031 Exchangor is allowed to receive capital gains deferral. This is accomplished through the use of Asset Exchange Group's Self Directed Installment Sale (SDISSM) in conjunction with a 1031 Exchange.
With a typical 1031 Exchange, all capital gains taxes must be paid in that tax year if the Exchangor fails to successfully complete the exchange. Depending upon the state, Capital gains taxes can be 20% to 28% for both federal and state.
With the 1031 Rescue, if the 1031 Exchange fails, then Asset Exchange Group will turn over an installment note for your property and you will then receive a series of payments and defer capital gains taxes over the term of the note.
To learn more about the Self Directed Installment Sale, the 1031 Rescue, or the 1031 Exchange, go to Tax Deferred 1031 Exchange or click on the link.















