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Marcellus Shale Meets 1031 Exchanges
The Marcellus Shale is a rock formation lying 5,000 to 9,000 feet below the surface, stretching from New York State through West Virginia of which sixty percent is located in Pennsylvania. Marcellus Shale exploration and drilling has overtaken the northern to southwestern part of Pennsylvania, and with it comes many new challenges and opportunities for the landowners in this area, and 1031 exchanges may help.
Gas exploration and drilling in this part of the state is not something new to landowners. However, the new technology gas companies have for locating and extracting the gas is. This technology of horizontal drilling and hydraulic fracturing has given the gas companies access to large gas deposits deep within the earth. While technology gives them the ability to locate and remove the gas, there is another hurdle these companies must face before they can actually start any of these processes - access to the land.
Many landowners have been approached by gas companies to lease their land and retain a percentage of the royalties if gas is located. The signing bonuses attached to these offers can be very attractive to the landowner depending on the level of certainty on the part of the gas company and how many companies are competing with the same landowner. While the bonuses are very attractive because they are a guaranteed payment, royalties, in the long run, may pay out more over time. |
Lunch & Learn Webinars 
1031 CORP. recently kicked off our Lunch & Learn Webinar Series providing quick educational sessions designed to help you build, sustain and preserve wealth. Grab your lunch, log on to a computer near you and we'll give a timely 45 minute session. Our sessions begin promptly at 12:05 pm and wrap up by 12:50 pm.
Tax-Deferral Strategies for Unwinding your Real Estate Portfolio
October 20th, 12:05 - 12:50 pm TODAY AT NOON!
This webinar will explore two deferral strategies that may be advantageous when you have decided you no longer want to invest in real estate and wish to begin unwinding your portfolio. Judy Wetzel, CFP will explain structured sales and charitable remainder trusts and their benefits.
Tax Consequences of Selling a Primary Residence or Vacation Home October 26th, 12:05 - 12:50 pm This webinar will review the exclusion allowed under section 121 when selling your primary residence. We'll also discuss the sale of vacation homes and when they may be eligible for a 1031 exchange.
1031 Exchanges Made Easy November 4th, 12:05 - 12:50 pm This webinar will provide an overview of 1031 tax-deferred exchanges and their many benefits. We'll also review the requirements of a successful exchange.
Advanced 1031 Issues Thursday, November 11th, 12:05 - 12:50 pm
This webinar will review topics such as reverse and improvement exchanges, personal property exchanges, related party transactions, installment sales and partnership issues. 1031 basics will not be covered so if you don't know the basics, you are encouraged to take our "1031 Exchanges Made Easy" webinar first. |
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2010 Shore Symposium Recap: Great Opportunities
Over 75 people registered for our 2010 Jersey Shore Real Estate Symposium which was held on September 11th in Somers Point, NJ. Our speakers provided a wealth of valuable information. The overall sentiments of each speaker were the same: The inventory of Shore properties on the market is starting to go down but there is plenty of selection and the prices are down significantly from a few years ago. This coupled with mortgage rates where they were in the 1940s is creating opportunities that were completely out of reach for many in the mid-2000s. For those that always dreamed of a Shore house, now might be the ideal time to sell an investment property and exchange it for a Shore property that will be used as a rental property. In a few years, you could convert your Shore rental into the vacation home you always wanted.
Joe Sheppard, REALTOR® with Prudential Fox & Roach, REALTORS®, shared the following data on the Ocean City real estate market and we've added a column to show how the Dow Jones Industrial Average performed during the same time period. All figures are based on September 1st of each year. Even with the current state of the market, real estate continues to be a profitable long-term investment.
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Year
(on Sept. 1st) |
Number of Ocean City, NJ Units Sold |
Median Price of Ocean City, NJ unit |
Dow Jones Industrial Average | |
1999 |
573 |
$215,000 |
$10,829.28 | |
2000 |
731 |
$265,000 |
$11,238.78 | |
2001 |
721 |
$300,000 |
$9,949.75 | |
2002 |
903 |
$320,000 |
$8,308.05 | |
2003 |
897 |
$415,000 |
$9,523.27 | |
2004 |
935 |
$519,000 |
$10,168.46 | |
2005 |
955 |
$600,000 |
$10,459.63 | |
2006 |
458 |
$559,000 |
$11,464.15 | |
2007 |
531 |
$535,000 |
$13,357.74 | |
2008 |
547 |
$530,000 |
$11,516.92 | |
2009 |
417 |
$470,000 |
$9,310.60 | |
2010 |
427 |
$494,000 |
$10,269.47 |
If you missed our Symposium but are interested in the insight of our speakers, videos of each of their presentations is available on our website for you to view at your convenience.
View videos of our Shore Symposium presentations |
State College Real Estate Investor Symposium
 1031 CORP. is joining forces with local companies to offer a State College Real Estate Investors Symposium on Tuesday, November 9, 2010 at Keller Williams Advantage Realty office in State College, PA. The complimentary program is designed to provide real estate investors with an update on the real estate market in the State College area. With enrollment up at all higher education institutions, there is an increasing need for student housing and Penn State has the 10th highest student enrollment in the country! Our real estate market update will be presented by Annette Yorks and Joni Teaman Spearly, ABR, two of the area's most seasoned REALTORS® and will include a look at the number of transactions, sale prices and sales trends as well as their insight on the state of the market today. The program will include information on section 1031 tax-deferred exchanges presented by Margo McDonnell, CES®, President of 1031 CORP. Also included will be a discussion on the availability of financing in the State College area. This program is a must for anyone interested in investing in Happy Valley!
TUESDAY, NOVEMBER 9, 2010 7:00 - 9:00 pm
Ramada Inn
1450 South Atherton Street State College, PA Registration and light refreshments begins at 6:30 pm.
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1031 Classes
 In keeping with our commitment to educating investors and their professional advisors on 1031 exchanges and their many benefits, 1031 CORP. regularly offers classes and workshops tailored specifically to our audience. We invite you to join us at one of our upcoming seminars.
1031 EXCHANGES MADE EASY Seminar
Thursday, November 11th, 6:30 - 8:30 pm
1031 CORP., 341 Tenth Avenue, Suite 200, Royersford, PA
To schedule a 1031 seminar or sales workshop for your group, please call Margo McDonnell, CES® at 1.800.828.1031 ext. 212 or send her an email. |
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About 1031 CORP.
Serving as a nationwide qualified intermediary for 1031 tax-deferred exchanges since 1991, 1031 CORP. strives to provide a superior exchange experience for our customers and their advisors. We provide our customers with enhanced security of funds, knowledgeable exchange professionals and a commitment to keep the exchange process simple for our customers and their advisors. Every member of the exchange team is a Certified Exchange Specialist® and has the experience and expertise to facilitate even the most complex exchange transaction, including reverse, improvement and personal property exchanges. Additional information can be found at www.1031CORP.com. |
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Margo McDonnell, CES®
Certified Exchange Specialist®
President
1.800.828.1031 ext. 212
Mobile: 610.680.6896
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Sue Umstead, CES®
Certified Exchange Specialist®
Senior Vice President
1.800.828.1031 ext. 208
Mobile: 610.755.8520
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Marissa LoCascio, CES®
Certified Exchange Specialist®
Senior Exchange Officer
1.800.828.1031 ext. 210
Mobile: 610.742.4351
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Article Exchange
 As a new feature to our newsletter, each month we share links to timely articles related to 1031 exchanges, real estate, taxes, investing and the ecomony that we think you will find interesting.
Multifamily Sales Defy the Slump The Wall Street Journal September 22, 2010 Apartment Market, Rents Rebound The Wall Street Journal October 6, 2010 PNC Survey: Phila. Economy's Recovery Will Be Gradual Philadelphia Business Journal October 7, 2010 PA House Approves Tax on Gas Drilling in Marcellus Shale The Philadelphia Inquirer September 30, 2010 If you have any article you would like to share, please forward it to Margo McDonnell, CES®. and we'll include it in next month's reading list. |
Look for 1031 CORP. at TriState's 2010 ACRES Visit Margo McDonnell and Sue Umstead at the 1031 CORP. exhibit at the 2010 Annual Commercial Real Estate Show on October 27th at Harrah's Chester.
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 Look for 1031 CORP. at CII Council's Fall Forum Visit Sue Umstead at the 1031 CORP. exhibit at the 2010 Fall Forum on October 21st at The People's Light & Theatre Company in Malvern, PA. |
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"LIKE" 1031 CORP. on Facebook and receive daily tidbits on 1031 exchanges and related areas.
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Don't be scared of 1031!
Let 1031 CORP.
use its tricks to make
your 1031 a treat!
Happy Halloween
A/K/A
10-31 Day
from your
Friends at 1031 CORP. |
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