All Forum Posts by: Brandon G.

Disregard Q2. Ownership in a REIT is considered personal property and not a direct interest in real estate therefore not eligible for a 1031 exchange.
The exception would be a upREIT, which does not seem that viable.

Hi guys!

For those more familiar with Land Contracts/Installment Sales and Subject-To deals; I came across a potential deal in California and am trying to weigh the options to create a win-win.

The seller's goal is to avoid/reduce/delay taxes on the sale (fully depreciated SFR, California) of their rental property. They did a great job in cashing the equity out via a mortgage, but now realize that property management (whether paying professionals or not)is not fun in your golden years.

With that said, the property is currently encumbered by a mortgage under terms in which I may want to take on via Subject-To. This would accomplish my goal of obtaining another long-term rental property.
To help the seller with their goals, I was thinking of a Land Contract which would spread out the tax liability over time.

Q1. Is it possible (or a good idea for that matter) to do a Subject-to deal with a Land Contract?

Q2. Switching gears:
With respect to 1031 exchanges, does anyone happen to know if the IRS allows you to exchange a Single Family Residence for ownership in a REIT? This would allow the sellers another option to get rid of the headaches of owning traditional real estate and defer taxes.

Any insight or other ideas would be much appreciated.

Thank you for your response guys. Much appreciated!

Hello everyone. Has anyone bought a property with their Self Directed IRA, using private financing?
If so, where did you get the actual note? To clarify, I have the funding lined up but realize that I must obtain a Non-Recourse loan in order to satisfy the rules for a SD IRA. When speaking to the title company, they were not familiar with this type of transaction and could not provide the actual "non-recourse" note or verbiage. I also reached out to Equity Trust who also said that they do not have blank notes or templates.
I believe that a purchase money loan in the state of California is non-recourse by default anyways, correct?

Could I simply use the standard Promissory Note and Deed of Trust for purchases that the title companies normally provide when facilitating private financing?

Thank you in advance for sharing your experiences and knowledge

New to BP and loving it,

Brandon

Wells Fargo goes up to 10 as well. They do have increased requirements similar to what David mentions regarding Citi.

Your local Credit Unions can be another avenue but they seem to less consistent with rates and terms since they are, as you say, portfolio loans.