If I am considering selling a rental, what type of broker should I be looking to list with? A broker who focuses on selling investment properties or a broker focused on buyers looking for primary homes? Does it matter?
Also, I know 1031 can only be used when purchasing like-properties (real estate to real estate), but is it possible to move proceeds into a commercial syndication?
@Jonathan Oh , Two cents on the broker. Good realtors are good realtors. There's a huge difference between SF and MF/commercial realtors and you don't want to mix those. But a good realtor is one who knows how to sell your house for highest and best and get it done. You may find your highest price is with an end user/homeowner resident. You don't want someone only looking for potential landlords in that instance. You also don't want someone who only has a network of investors because let's face it investor always want to buy at a discount right ? :)
In order to use a 1031 for a syndication the syndication has to be set up so you can take a deeded interest in a % of the real estate itself as a tenant in Common. Most syndications are an LP type structure or an LLC structure and because of financing issues cannot offer you a TIC interest in the real estate itself. A membership interest in the LP or LLC will not qualify for 1031 treatment.
Depending on your needs and strategy there are other products that can accommodate you if you're simply looking for passive involvement and other routes to take if you're looking for aggressive returns that would be 1031 compliant.
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