New to Bigger Pockets and have an upcoming 1031 and need advice

2 Replies

Hi everyone,

I am new to bigger pockets and figure it would be worth reaching out for advice from investors that have more experience than myself.  My business partner and I have been investing in single family rentals for a bit of time and have managed to accumulate 5 in Albuquerque as well as 10 in Detroit including 2 duplexes.  We have taken a great deal of time and care to do our due diligence and not only inspect all of our properties but find partners we can trust and rely on.  We are looking for strong relationships moving forward in various markets that can allow for mutual success as we continue to expand our portfolio.  We are definitely buy and hold and looking for long term cash flow.

Our dilemma is as such.  We own a commercial building that is scheduled to close on 10.18.18.  We have done 1031 exchanges twice in the past but have never been tasked with placing such a large amount at one time.  Our partners in Detroit can only accommodate about half of our proceeds, leaving us with roughly $500,000 to invest.  We are definitely looking at expanding into new markets in order to further diversify our portfolio, but lack the kind of time we generally take to do our due diligence and find the best partners.

I am hoping some of you have advice as to where to look rather than having to go in this somewhat blindly.  In the past we have preferred smaller companies that are very hands on, that are invested in the same areas and that handle everything from purchase to rehab to sale to management.  We are very low maintenance and have been in the game long enough to know that issues arise and there is no perfect investment.

Any advice would be greatly welcomed.

Thank you in advance for your time!

Jeff

You definitely need to connect with some brokers who specialize in this stuff in the areas of the country you're interested in.  I've seen a lot of investment coming into the midwest and Kansas City lately (where I'm based) because cap rates haven't compressed quite as much as other parts of the country.  But a good broker/firm that has a large presence could point you in the right direction.  I can refer someone if you're interested. 

Also, I work in the DST space (Delaware Statutory Trust). You should consider utilizing a DST or two as a backup for your exchange if things don't materialize in time for your exchange. Happy to PM you and share more if that's of any interest.

Best of luck!

Kansas City (where I'm located as well) has become very popular among out of state investors. I would recommend visit here though if you decide on KC because there are good pockets within bad areas and also quite a few  suburbs that would be great for investing. Also depends on if your looking for multi or sfr. Feel free to connect if you have any questions. Happy to help.