1031 exchange and another questions

6 Replies

Hello to all friendly members on this forum !

I have rental property, which I want to sell, but ....
gain taxes.
In my case it is exeptionalyl painfull, because I obtained this property
as the part of divorce settlement and I am older person now.
I already spent a lot of money for professional consultations
, it helps but not to the end. ( lack of preperation from my site)

I am in the process now to educate myself , as much as I can about 1031 exchange option.
I want to be able to ask right questions during next expensive meeting with the lawyer or
CPA.

What I am looking for over her, for precious help....

I am looking for recommendation of the websites which offer help with 1031,
and this is their business,
they do not require the client to be accredited investor
they provide the listing of properties for sale
and what very important, they provide at least closely estimated analysis
of the deal. ( price, rent amount, property taxes, other costs etc)


After my investigations , I am the most interested in rural California,
or Atlanta Georgia, or Charlotte North Carolina.
During my searches I found website of type I am looking for, I think it was Atlanta,
their listing was very limited, but provided this analyse.
but I did not save it ( did not realized how preasure it was) and can not find it again.

So please, if someone went through 1031 exchange process, please share the websides
which helped to find the right property, even better if they manage rentals.
My case is so pityful, so the cost to even higher limits is wort it.

Thank you very much eva
P.S:

My expectations, with flexibility

To have at least 600k from the sale
take 120-150 k cash ( pay taxes on this amount)
Invest in 2 sigle family houses
To have close to 2k cash flow from the rent
possible ? or the dream ?

PLEASE HELP

Hey @Eva Fox , welcome to the BP community!

Lots to unpack here but let's take it a few steps at a time. You will definitely want to educate yourself a bit further on 1031 exchanges. Researching here on BP is a great start.

 I'm not aware of any one-stop shop websites that will help you with every aspect of the 1031 from start to finish. This is a fairly complicated process that will involve an intermediary to guide you through the process. However, they won't (as far as I'm aware) help you find the properties to purchase. They simply make sure you're going through the proper steps and meeting the proper deadlines. You will want to ask around or search here on BP for exchange intermediary recommendations. 

The other piece of the puzzle is finding the properties you wish to purchase with the 1031 funds. This can be done by networking with investors and real estate pros in the market you've chosen to purchase in. I would recommend picking a market and sticking with it. Since you will be on a tight timeline, focus will be key. If you're searching in 3 very different markets and aren't quite sure what you're looking for, this could lead to you missing one of those important deadlines. 

So, separate this out into two sections: 1. Looking for an exchange intermediary & 2. Looking for deals. Now, go through the steps for each of these.

Hope this helps a bit. If you want to learn more about Atlanta, please feel free to reach out anytime!

@Eva Fox , You're going to need a team for this.  The 1031 itself has to managed by an unrelated 3rd party whose only role is that.  As far as your sales and purchase process you'll use your regular realtors, title company etc.  And if evaluating certain passive 1031 opportunities for replacements you'll probably want to access a broker/dealer or a commercial realtor for commercial opportunities.

Most of these folks are vey willing to consult with you at no charge and trust you'll later use their services to perform their assigned tasks.

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@Eva Fox When you do find a property you want to exchange into, remember to leverage cost segregation to accelerate the depreciation to get extra cash-flow up front. You may also want to explore the benefits of changing some capitalized items to expenses from your previous property to give you a tax advantage going into the new property. This may sound confusing but it is to your advantage. 

Thank you so very much for posts and so valuable informations.

i am studying really intensive way,so mad with myself,I do it so late.

The best luck to you golden hearted people 

e

@Eva Fox I'm happy to introduce you to a 1031 intermediary that I have worked with in the past. Generally speaking, they can point you in the right direction and answer questions to ensure that you remain compliant with 1031 guidelines. 

Feel free to reach out and I can make the connection.

@Eva Fox

I want to recap what you're asking because it was a little confusing and it matters a lot.

I think you want to sell your property and buy new so it can give you some cash out and meet your goal of $2k income per month.  The property that you're selling is worth $600k, correct?   You're gonna sell it for $600k, put $150k in your pocket, leaving $450k to buy 2 rentals.  You said you're older and want a very capable property manager.  To avoid the tax hit, you're planning on a 1031 exchange.  I take it you have not lived in the house 2 of the last 5 years. 

There are no companies in Atlanta that do all that.  However, you just need a few people to help.  

1.  You need a listing agent in LA that understands your goals for the sale of your house.  Fast close doesn't help you. 

2.  You need a reputable agent in Atlanta or Charlotte who can get you through the 1031 Exchange.  You would be looking for $200,000 houses with $1300+ per month rent -- a newer house would be best.  That's a highly sought after scenario.  Make sure your agents understands this and that you know that you'll have to make a lot of offers, very quickly to win a deal.  Be prepared.  

If you're buying near Atlanta, you need to narrow your focus on a few suburbs.  Douglasville, Covington, McDonough, Canton are good starting points.  I believe they would be in your price range.

A great 1031 exchange company in Atlanta is Starker.  They are very reputable.

http://www.starker.com/contact...

After you buy a couple of houses, I hope you'll continue to learn how to get more from this sale.  

Good luck to you!