Help understanding the 1031 process

[Chris John]

Hello all

My brother and I have created a complicated mess with our real estate transactions over the past decade. We're now trying to clean things up via an LLC. Currently, we have some houses in California that we're considering selling and purchasing multifamily properties out of state. We purchased these properties over 10 years ago, so we would like to avoid a major tax hit by utilizing a 1031 if possible. We're concerned about the difficulties involved with selling and buying in the given time frame, etc. and are hearing about delayed and reverse 1031 exchanges.

Does anyone know of a good resource or contact that we should be checking out to learn about this process?

Thanks!

[Glenna Wood]

Contact Dave Foster or other QIs here on BP. For me I'm always biased to the KISS rule and would just do simple 1031's property by property. The key to success is know what you can buy before you sell by researching that new market thoroughly first. Don't waste your window scratching your head on what to buy. I never put the for sale sign up unless I've watched a market for at least 6 months and keep a possible replacement list updated. Then once you sell, make your offer(s) on the replacements right away. Also keep in mind is your main goal get out of CA or find new multifamily? If you're buying in a market with not many multifamily properties available, does it work for you exchange into SF(s) for a few years as an interim step? Best wishes!