Crowdfunding company with 1031 option?
Hey all, My husband and I are going to sell two of our rental units this year and we are thinking about doing our 1031 exchange for the first time. Based on what I learned about 1031, our replacement property should have a value of 900K or more and the net proceeds we will get and need to invest should be around 550K. We have the following questions:
1: My husband and I individually own that two rentals ( he owns and I own one) and we wanted to combine the proceed from both sales and 1031 to one new property under both our names. I know you can't sell a property under an individual name and then buy the replacement under an LLC under 1031 rule. But I am not sure if our transactions would qualify for 1031.
2. For our next purchase, we are more focused on cash flow rather than appreciation. Ideally we want a cash flow of 3k on next investment, which is hard to find a Boston market. Then we found this crowdfunding company who claims to be able to do 1031 with estimated annual return of 6.5%. Their product is net leased portfolio DST. We just started learning about crowdfunding and would like to hear your opinions on that !
3. This upcoming 1031 replacement property will be the biggest real estate investment for us, putting it into a crowdfunding sounds a little bit risky. But we are not sure if we can find a good mutli family in the area within the time limit. We haven’t tried to invest out of state yet. is there any other options we can consider? A little bit background: We still have a small rental which is generating cash and we bought our own home. We should have enough cash reserve if we end up buying a real property. We might qualify for accredited investors for crowdfunding.
Thank you so much for reading this and looking forward to hearing your thoughts !