1031 Exchange Santa Barbara to Los Angeles

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1031 Exchange Santa Barbara to Los Angeles

Patrick Wilcox
Los Angeles, CA · Member since 2018 · 13 posts · 1 vote

I've got up to $1,100,000 in cash from a 1031 exchange to purchase in a home in Los Angeles to live in and run my production company out of. We work with large brands including Adidas and Netflix, so having a functional and professional space with a large open floor plan is important. There will be employees coming and going on some, but not all days. www.colorways.tv

The top contenders right now are:

1. Downtown or Arts Disctict Loft.

2. New construction small Lot Division in Culver City/Mid City/ Hollywood/ETC

I'd love any help/guidance/ideas. Both when it comes to selecting and purchasing a property, as well as how to utilize the over $1,000,000 in equity I'll have after the 1031 is complete.

 In exchange for your time, I can offer is my skills/expertise/know-how on using video as a tool in real estate as an agent or landlord. Cinematic video is drastically under-utilized in real estate and is now affordable for any serious agent/investor. The introduction of the Black Magic Pocket Cinema Camera 4K, sells at an insultingly low $1300 for the camera body. It's a revolutionary moment, to a similar - albeit slightly lower - degree as the introduction of the printing press.

Thank you for your time!

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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
7y

Well, you can’t 1031 into, or out of, your primary residence.....only investment/business properties.

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  • Storm S.
    Real Estate Agent · Santa Barbara, CA · Member since 2016 · 518 posts · 283 votes
    7y

    @Patrick Wilcox I’m confused by your title are you interested in anything from Santa Barbara to la?

    0Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    7y

    Well, you can’t 1031 into, or out of, your primary residence.....only investment/business properties.

    1Reply
  • Lee RipmaPro Member
    Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
    7y

    @Patrick Wilcox

    Seems like you’ll want to focus on buying an office to run your company out of since you can’t use this for your primary, as others have said. For an office I’d think about where most of your employees contractors live and pick something where their commute won’t suck.

    Podcast Guest on Show #373
    0Reply
  • Jon Schwartz
    Realtor · Los Angeles, CA · Member since 2018 · 952 posts · 1k+ votes
    7y

    @Patrick Wilcox, check out this listing:

    https://www.redfin.com/CA/Los-Angeles/2413-Hyperion-Ave-90027/home/17242521

    I love it. I just don't have a business to fill the commercial space! Silverlake is a great neighborhood for living and working. Message me if you want to chat more.

    0Reply
  • Patrick Wilcox
    OP
    Los Angeles, CA · Member since 2018 · 13 posts · 1 vote
    7y

    Quick update: Without going over all the details: this is all good for 1031 exchange, vetted by an attorney, etc. Thank you for concern though!

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    Can you explain how you're getting around using a 1031 to get a new primary?

    0Reply
  • Patrick Wilcox
    OP
    Los Angeles, CA · Member since 2018 · 13 posts · 1 vote
    7y

    It's not a new primary. I don't live in the house.

    0Reply
  • Patrick Wilcox
    OP
    Los Angeles, CA · Member since 2018 · 13 posts · 1 vote
    7y

    It's more complex than I care to explain at the moment, but I assure you this is not me going into or out of a primary residence. So all that aside, thank you for input!

    0Reply
  • Account Closed
    Real Estate Agent · Los Angeles, CA · Member since 2017 · 120 posts · 36 votes
    7y

    @Patrick Wilcox Hi Patrick. I’m assuming you are working with an agent on this one as I think the paperwork is a little different than a standard deal (I’ve also seen plenty of 1031’s being done like this in LA, not my deals but have seen it). Anywho, I think South LA (Inglewood, View Park, Park Hills Heights) could offer what you’re looking for and use your equity efficiently. I would also suggest the Jefferson Park area, it’s gentrifying quicker than other areas down there and I know I’ve seen a number of duplexes that were unpermitted conversions so you’d get the open space you’re looking for. The Culver City area would probably have the space you’re looking for but prices are higher and inventory is lower. To me, it seems Downtown areas are overpriced, given the “neighborhood” but it is trying to come up. MidCity will be hit and miss (poor quality). Maybe Cheviot Hills, but that would depend on the amount of space you want. The Cypress Park/Glassell Park area could also be an option, it’s cheaper than Atwater/Silver Lake area and you could find a larger home in your price range.

    0Reply
  • Michael T.
    Los Angeles, CA · Member since 2018 · 326 posts · 279 votes
    7y

    @Patrick Wilcox congratulations on your upcoming investment!  Since you're involved in production and entertainment my recommendation would be to be in the Mid-City area or as close to Culver City as possible.

    As mentioned the pricing in Culver City is going to be more difficult to find what you want within that price range, however, it is definitely possible.  

    Mid-City or the Cheviot Hills area will give you access to Beverly Hills, Hollywood, Culver City and multiple other locations so if we're able to find something for you in this area it would be ideal.  Being within 15-20 minutes of all the studios makes a big difference in the world of entertainment.

    Please let me know if there is anything I can do to help.

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