New Real Estate agent Questions
I am currently finishing up my real estate license. I am getting ready to 1031 my property from CA to AZ. What Broker would be the best to “Hang my license” if I am planning on mostly using my license for my businesses? Also has anyone gone through a 1031 that knows if I am able to 1031 into 2-3 properties rather than one expensive one. Thank you in advance.
Hi Robert, it appears your question has 2 parts so I'll try to tackle the 1031 piece. Replacing your expensive CA property with 2-3 cheaper ones in AZ is fairly straightforward. The basics of 1031 are that you can identify 'up to 3 replacement properties in the immediate 45 days following COE on your relinquished property'. You then have to close on at least one of your identified properties in 180 days and invest 100% of the sale proceeds of relinquished property towards the purchase. I think you can use funds to pay some of your closing costs but I've heard conflicting info on this.
I did a very similar exchange last year and I would caution to keep an eye on your reserves. It is likely that you will spend a lot of money out of pocket (make ready of the property you sold, possibly buying more expensive property than your 1031 funds can cover, make ready of purchased property) which cannot come from the proceeds of your sale. You're probably looking at a nice bump in cashflow once the dust has settled, but that is 6-12 months out (unless you buy turnkey and occupied at market rent) so make sure you have the cash on hand to sustain. Best of luck!
@Brian Moore Thank you sir
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Originally posted by @Robert Keay:I am currently finishing up my real estate license. I am getting ready to 1031 my property from CA to AZ. What Broker would be the best to “Hang my license” if I am planning on mostly using my license for my businesses? Also has anyone gone through a 1031 that knows if I am able to 1031 into 2-3 properties rather than one expensive one. Thank you in advance.
If you just want to use it for your own investments & aren't looking to work with clients I recommend you check out brokerages that do not require "floor time" or you to be present for weekly or monthly sales meetings. You want to look towards something that let's you operate with autonomy while paying them their cut on all of your deals. Remax is one that comes to mind as a potential fit. EXP as well if they are operating in your area, whether they are national like Remax or regional I am not sure of though.