I have held some single family homes since 2000 and I wanted to start selling them in 2016. I can absorb one sale per year but anything over that I was hoping to 1031 into something that is more hands off. I know very little about what options I might have in that regard, or who would be a good person to deal with in order to find a suitable property/situation for an exchange.
hi Kevin- I may be able to help. I work in the world of DSTs. I cannot write about it online, as all investors don't qualify according to guidelines. Please give me a call if you have any interest. Best- Leslie
We did a 1031 turning one property into 3. It is a great way to delay the tax hit! Just make sure you hire an experience coordinator that makes sure you follow all the red tape!
I am working with lot's of investors from California. Many own properties where cash flow isn't great but due to demand have a ton of built up equity and want to cash out before Cali crashes again in values.
They are all doing 1031's.
DST's and things like that you have no direct control of your investment and are locked in over a certain period of time.
You can be passive owning NNN single properties or for example multi-unit strip centers. Also really large apartment buildings with scale. You can even land non-recourse loans.
It depends on how much money you are talking. If you are selling houses where you will have millions to exchange then you have options.
If you have say 100k from a sale then you are much more limited and to get into larger properties would have to buy a small partial interest and give up control.
My Cali clients have huge equity gains to 1031 in some cases in the millions from the sale of the property.
NNN single property is more compressed so could possibly hit high single digits cash on cash with 25% down. Strip centers can hit about 15% or more cash on cash annual return off of 25% down.
You need to talk to different people to look at your options and see what makes sense.
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