By The Sea Sotheby's International Realty - Beverly Farms Massachusetts Real Estate

715 Hale Street
Beverly Farms, MA 01915

Office: 978.865.1168
Fax: 978.921.0022

Team@RealtyByTheSeaUS.com

White Glove Services

	For Buyers
	Local Resources
	For Sellers
	For Investors

White Glove Services:

At By the Sea Sotheby's International Realty, we are ready to assist our clients achieve their goals in real estate. Our sophisticated agents and support staff have the expertise and resources to meet each client's individual needs. The following is a brief overview of the services for which we can extend or provide referrals:

	Thorough Comparable Market Pricing Report
	Tailored Property Search
	Multi Faceted Marketing Strategy
	Investment Research and Analysis
	Expert Legal Counseling
	Financing and Mortgages
	Preferred Contractors
	Home Inspections
	Professional Photography
	Staging Services
	Sotheby's International Realty® tools and brand provide international outreach for property searches by location or lifestyle
	Global Distribution Program - a service that shares print and electronic listing information with over 450 Realty offices in 37 Countries and Sotheby's Auction houses in 13 countries worldwide for qualified properties
	Sotheby's International Realty® website reaches an international marketplace to showcase your property
	Sotheby's Auction House locations have realty desks with designated representatives catering to auction house clientele.
	Specific neighborhood knowledge and access to skilled agents who live and work in the towns we represent
	Innovative and personalized advertising
	Property analysis

For Buyers

Luxury Homes, Global Reach

Sotheby's International Realty® brokerages take great pride in using considerable experience, resources, and global connections to artfully unite extraordinary properties with extraordinary lives. Born of the storied auction house, we continue to provide exceptional service and astute valuation for many of the world's finest and most luxurious homes.

	Exquisite Homes
	A network of offices to assist you locally and globally
	A team of associates with knowledge of their local markets
	A web site that displays property listings from around the world

For Sellers

Home Selling

Why Sotheby's International Realty®

Beginning with its establishment in 1744, the Sotheby's auction house has earned a reputation for a keen eye in the valuation of fine possessions. Continuing this fine tradition in exceptional real estate and professional seller services, brokerages within the Sotheby's International Realty® network represent many of the world's luxury houses and estates. We see in every relationship and every transaction an opportunity to extend the centuries-old Sotheby's International Realty® reputation for distinctive properties, prestigious heritage and, above all, the highest level of service.

A global network accessing a far-reaching qualified client base

	Time-tested appraisal, sales and marketing experience
	An international sales force of associates with local knowledge
	Proprietary print marketing and advertising programs
	A compelling web site driven by a powerful brand
	Strong connections with the clients of Sotheby's auction house

How We Connect Your Property to Qualified Buyers

Such distinctive homes can attract interest from far beyond your local market. Along with an enviable network of local contacts, your Sotheby's International Realty® broker has the advantage of a relationship with a national and worldwide community of expert real estate professionals. When you list your home with a Sotheby's International Realty® office, it is presented to prospective purchasers from all over the world in addition to your neighborhood. Our network includes associates who understand their local markets and are able to identify appropriate prospects both within and beyond their areas. Sotheby's International Realty® marketing initiatives also offer exclusive access to Sotheby's auction house clients, and your real estate property listings are well positioned to attract the attention of these well-qualified buyers.

For Investors

We specialize in working with investors who would like to use Real Estate to enhance their portfolio of investments. We can guide every step of your investment process whether it be rental property, multifamily condo conversions, commercial real estate, TICs or 1031 Exchanges.

ABOUT SECTION 1301 EXCHANGES

In a typical transaction, the property owner is taxed on any gain realized from the sale. However, through a Section 1031 Exchange, the tax on the gain is deferred until some future date.

Section 1031 of the Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a property owner trades one or more relinquished properties for one or more replacement properties of "like-kind", while deferring the payment of federal income taxes and some state taxes on the transaction.

The theory behind Section 1031 is that when a property owner has reinvested the sale proceeds into another property, the economic gain has not been realized in a way that generates funds to pay any tax. In other words, the taxpayer's investment is still the same, only the form has changed (e.g. vacant land exchanged for apartment building). Therefore, it would be unfair to force the taxpayer to pay tax on a "paper" gain.
The like-kind exchange under Section 1031 is tax-deferred, not tax-free. When the replacement property is ultimately sold (not as part of another exchange), the original deferred gain, plus any additional gain realized since the purchase of the replacement property, is subject to tax.

We recommend consulting with your tax advisor regarding the advantages of a 1031 exchange.

I also can highly recommend the following Exchange Facilitator:
Lynne Bagley at Orexco www.orexco1031.com

Tenant in Common (TIC) Investments

A tenant-in-common investment is a structure of property ownership where multiple investors pool their funds to own one entire property. As a TIC owner, an investor has an undivided fractional interest in one property and shares in their portion of the net income, tax shelters and appreciation. Each TIC owner receives a separate property deed and title insurance for their portion in the property investment. This gives the investor the same rights of ownership that a single owner would enjoy. Because TIC offerings are often "packaged" with management and financing in place, TICs may offer a more simplified solution for the 1031 investor searching for replacement property.

Real Estate or Securities

	For 1031 exchange purposes TICs are fractionalized interest and deeded real estate. Co-ownership of real estate in the form of TICs can be structured other than a partnership. The IRS Revenue Ruling 2002-22 provides further guidance in this area.
	Securities include investment contracts. An investment contract is a financial arrangement where investors contribute capital with the expectation of profit and rely on the efforts of a sponsor to oversee the investment process.
	"The fact that TIC interests typically are investment contracts under securities laws does not inherently disqualify them as property that may be exchanged under Section 1031."1 TICs are structured as both real estate and securities. TICs are fractionalized ownership in real estate and investment contracts as securities. TIC Advantages
	TIC investments provide simplicity by eliminating active management headaches. Individuals who are ready to relinquish the day-to-day burdens of being a landlord, or who own land and would like an income producing property, may benefit from TIC investments. TIC programs provide a "mailbox management" investment that may save time and money.
	TIC ownership allows an investor the ability to diversify their 1031 exchange into more than one property, and to own potentially larger property(ies).
	Cash flow from operations is generally paid monthly and is tax-sheltered via depreciation-pass-through and interest deductions (in many cases a portion of the investor's net income is tax sheltered.)
	A TIC investor may experience appreciation over the time a property is held.
	Minimum equity requirements as low as $200,000 allow an individual to invest in larger, possibly institutional-grade properties that they otherwise could not purchase. TIC Risks
	TIC interests are direct investments in real estate and are subject to all risks of owning, operating and disposing of real estate.
	Results from investing in real estate vary through cyclical economic times.
	The cost to acquire a TIC interest may be more than purchasing a property by the whole due to additional expenses of making the property available to multiple co-owners and marketing it in the form of a private security offering.
	A TIC interest is an investment in real estate and is an illiquid investment. There is no established secondary market for the resale of TIC interests.
	TIC investments may not be suitable for all 1031 exchange investors.

Each Office is Independently Owned and Operated. ©2008 Sotheby's International Realty Affiliates LLC. Sotheby’s International
Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Equal Housing Opportunity.

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