My single family home has a strong rental history (8+ years) and is currently occupied. I would like to sell the property to another investor and do a 1031 exchange. Not sure how to start or where the best place to list the property is. I can't show it like a regular real estate sale because I don't want to disturb the tenants. Is there a special investment property listing service that I should use? Do I need a RE agent or just a lawyer?
I live and invest in the Raleigh area. Give me some details on you property and I may have some interest or can refer you to my local REI.
Property grosses $15,600 per year. In reasonably good shape, new A/C unit in 2017. Cap rate is around 6%.
@Annette Plummer Very good question. My recommendation first is to connect with the 1031 advisor so you understand the timelines and restrictions. Have you already identified your next property(ies)? Second, are you looking for a retail priced sale or are you willing to accept a discounted price in exchange for convenience and timing that works for what you are trying to accomplish? Determining the price you are asking will guide your decision for how you are going to sell. If the price works out for investors, you'll have very minimal intrusion on the tenants during the process. If you are looking for a retail price that really only works for a new resident, it's a different story. Our company (like other investors) purchase tenant-occupied properties all of the time. If you are looking for investors, you could just throw out the offer on BP. Otherwise, just put the listing on MLS.
Thank you for explaining that Adam.
@Annette Plummer The qualified intermediary can adapt to however you choose to sell the property. Since the QI has to be a disinterested (legal term :) third party we do not replace any of the professionals you would normally use. so whether you choose to hire a realtor or post to boards yourself and fsbo the QI can make it work. Of utmost importance is that you do not close the sale without the QI in place. Documents reflecting the 1031 must be on the closing statements of the property.
But I would go ahead and market and get a contract on the property while you're educating yourself on the 1031 process.
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