1031 Tax Group

1031 Exchanges
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1031 Tax Group

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Member since 2008 · 34 posts · 0 votes

I am just interested in finding out if there is anyone in this group that was involved in the 1031 Tax Group debacle with Ed Okun?

There have been a few new developments and I wanted to know from your side how things are going.

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  • Account Closed
    Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
    18y

    I never heard of the person or the issue.

    I googled his name and found a few things. Too many to read right now.

    What is the essence of the situation?

    John Corey

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  • Bill ExeterBusiness Member
    1031 Exchange Qualified Intermediary · San Diego, CA · Member since 2008 · 1k+ posts · 1k+ votes
    18y

    Hi John,

    We have extremely few situations in the 1031 exchange qualified intermediary industry where someone has misappropriated clients' 1031 exchange funds, but this is one of those situations.

    Mr. Okun specifically entered into the 1031 exchange industry to acquire qualified intermediaries for the sole purpose of using the client 1031 exchange funds else where. He did have the intent to pay the funds back, but got caught.

    The 1031 exchange qualified intermediaries under his control have filed for bankruptcy protection and are being reorganized. He has pledged assets and the intent is to repay all clients, but when/if they receive their 1031 exchange funds it will be well after their 45 and 180 calendar day deadlines.

    Exeter 1031 Exchange Services, LLC and Exeter Trust Company4.726 Reviews
    WebsiteView Page
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  • Skylar Howard
    Real Estate Consultant · Siesta Key, FL · Member since 2008 · 421 posts · 50 votes
    18y

    I am looking to raise capital for shortsales I am negotiating. I live in Orlando. Is it legal for someone to use their 1031 exchange to partner with me on some of the properties I have under contract? If so, does anyone have an idea where I may find sources? I have considered contacting the local exchange companies, but there has got to be a better way.

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  • Bill ExeterBusiness Member
    1031 Exchange Qualified Intermediary · San Diego, CA · Member since 2008 · 1k+ posts · 1k+ votes
    18y

    Yes, absolutely. You can have 1031 exhange clients buy into real estate short sales with you. The key is that the 1031 exchange investor must acquire a direct interest in the real estate as a tenant in common interest if their 1031 exchange is to qualify.

    Qualified Intermediaries will most likely not release their client database to you because it would be a violation of the 1031 exchange clients privacy. The QI might be willing to tell their clients about you, but I doubt it unless they know you, have a relationship with you and trust you.

    Also, becareful in how you attempt to raise investors. You can unknowingly violate certain state laws that might govern raising funds. It usually falls under state securities laws. I would highly recommend discussing the issues with a securities attorney or real estate attorney so that you make sure you do not accidentally cross any lines.

    I'd be happy to discuss this further if you would like.

    Exeter 1031 Exchange Services, LLC and Exeter Trust Company4.726 Reviews
    WebsiteView Page
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