Below are answers to the questions we are most frequently asked. If you don't find the answer to your question listed here, please feel free to contact us for more information.
Questions:
- Where are you located?
- Do you have properties for sale on the ocean?
- Do you have properties for sale on the river?
- Do you sell Interval Ownership (time-sharing)?
- Do you have gated communities?
- What is your Discovery Package?
- If I rent my investment property, can I expect it to cash flow?
- Is there a time limit set for building on a homesite?
- Are golf memberships included when you purchase golf course properties?
- Is it difficult to obtain financing?
- Does vacation property qualify for 1031 treatment?
- Can I ever live in a property purchased for "investment" under a 1031 exchange?
- Under a 1031 exchange, if I have $100,000 from the sale of my relinquished property, how much replacement property could I purchase?
Answers:
Q
1. Where are you located?A
1. The Litchfield Company is located in the Pawleys Island - Litchfield area, on the coast of South Carolina just 30 minutes south of Myrtle Beach.Top of Page
Q
2. Do you have properties for sale on the ocean?A
2. Yes, we offer a variety of ocean front and ocean side properties - homes and villas, 2, 3 and 4 bedrooms. For specific information about properties The Litchfield Company has available you may do your own personal search in the Real Estate Search section of our website. For information on other properties available through the area's Multiple Listing Service, please fill out our contact form or contact your sales executive at The Litchfield Company.Top of Page
Q
3. Do you have properties for sale on the river?A
3. Yes, we offer a variety of river side properties - homes, cottages and villas, 3 and 4 bedrooms plus. For specific information about properties The Litchfield Company has available you may do your own personal search in the Real Estate Search section of our website. For information on other properties available through the area's Multiple Listing Service, please fill out our contact form or contact your sales executive at The Litchfield Company.Top of Page
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4. Do you sell Interval Ownership (time-sharing)?A
4. Yes, we do have Interval Ownerships available. For specific information about interval properties The Litchfield Company has available, you may do your own personal search in the Real Estate Section of our website or contact your sales executive at The Litchfield Company.Top of Page
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5. Do you have gated communities?A
5. Yes. Litchfield By The Sea, our ocean side community, and The Reserve, our river side community, are guard gated. Litchfield By The Sea has 24 hour security. The Reserve has daily security.There are other communities in the area in which we have property listings that are gated communities. Contact your sales executive for more information.
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6. What is your Discovery Package?A
6. We offer those interested in purchasing real estate an opportunity to enjoy our area for a discounted rate. You can enjoy 3 days, 2 nights accommodations for $75 which includes a complimentary real estate tour. For more information, please see our Discovery Package section of the website.Top of Page
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7. If I rent my investment property, can I expect it to cash flow?A
7. This question should be directed to your rental management company as to historical income as it relates to your costs.Top of Page
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8. Is there a time limit set for building on a homesite?A
8. Not usually. However, you should verify current stipulations at the time of purchase.Top of Page
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9. Are golf memberships included when you purchase golf course properties?A
9. Not as a rule. However, from time to time golf memberships may be offered with certain purchases as a marketing incentive.Top of Page
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10. Is it difficult to obtain financing?A
10. No. Conventional financing is readily available on all our properties.Top of Page
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11. Does vacation property qualify for 1031 treatment?A
11. A 1031 exchange "must involve like-kind properties, and both the properties transferred and the properties received must be held for productive use in a trade or business, or for investment." But that's as far as the written definition goes. It's logical to ask if vacation property is indeed eligible.In Private Letter Rulings, the IRS has allowed for Section 1031 where the taxpayer intended to acquire property for personal enjoyment and as an investment. One PLR stated, "The home and lot you acquire in this trade will be held for the same purposes as the properties exchanged: to provide for personal enjoyment and to make a sound real estate investment."
We can read that "personal enjoyment" of a vacation property does not prevent it from being eligible for the advantages os Section 1031.
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12. Can I ever live in a property purchased for "investment" under a 1031 exchange?A
12. Yes, provided that you use the property for investment for a period of time, you can later use the property for personal use. The specific initial "investment" use period is not referred to expressly in the code; however, it is largely accepted that a 2-3 year holding period is adequate after which time a property for investment under 1031 may be used in any manner the owner desires.Top of Page
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13. Under a 1031 exchange, if I have $100,000 from the sale of my relinquished property, how much replacement property could I purchase?A
13. You can purchase as much property as you can leverage provided that you use the entire $100,000 of relinquished funds. For example, you might buy $1,000,000 in replacement property with 10% ($100,000) down.Top of Page
