As Irma’s wrath has taken a toll on Florida it is evident that everyone has an account of hardship and overcoming adverse business conditions. Real estate opportunities in the Keys, Puerto Rico and Virgin Islands were at the center of discussion. With the Keys starting the long road to recovery, banks are starting to lend to hotels there, while the US territories dually hit are not so lucky since many areas may not see power for 6 months. Real estate opportunities in areas like Puerto Rico that were just starting to come back before the storm are going to require some patience and need a focus on infrastructure.
This month’s speaker was Ron Raitz of the Atlanta Deferred Exchange who discussed the benefits of 1031 exchanges and why it so important to preserve this financial instrument. Studies done by the National Association of Realtors show 1031s to be a pro growth vehicle that if done away with may have some unintended consequences; including increase in cost of capital, decrease in investments, and economic contraction to the tune of 13.1 billion per year. This has come into some controversy lately as a freebie and a tax revenue raiser but would have an immense affect on real estate. If you want to take action you can contact your elected representative or go online at www.1031taxreform.com