1031: Greater Huntsville; new construction
I’ve reached out to a few 1031 offices and they say I’m unable to utilize 1031 funds to both buy land and build upon it.
Essentially the funds can only be used to purchase already built property. I’d interested in buying land either for building a 4-6 unit structure to rent out for commercial Triple Net Lease or build triplexes (or greater) to rent out.
Areas just outside of Huntsville are also considered; Cullman, Guntersville, Harvest, etc. Trying to stay within an hour radius.
Thanks!
Most Popular Reply
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
Reach out to @Dave Foster. You can do it. BUT it will be MUCH more complicated and therefore expensive than a traditional exchange. I BELIEVE you will also have to come out of pocket for much of the work before the exchange unless you live in a dream world where you can purchase, permit, and build VERY quickly.
The problem is you need to purchase the land and build the property, except YOU can’t. So the 1031 company has to buy it and build it and then sell it to you.
Dave will have a better answer than me. But yes if you have time and money it can be done.