All Forum Posts by: Robert Hetsler

I am not sure exactly how you would do it procedurally, but you just need to record it as a deferred gain( future liability) and keep the original asset at the cost basis less depreciation and you can either rename to new property name but most important is to record the gain and depreciation recapture taxes that would have been paid, but for the 1031 exchange, as future liability on the balance sheet and no income statement items are affected, only balance sheet items are impacted.  Just keep in mind that if tax rates change when you actually pay the liability it will have to be adjusted on your tax returns. I hope that makes sense

also, excuse my ignorance but where would I find out more about the JAX REIM Group as I would love to get involved.  See, I am already learning from you!

George, I am in Jacksonville and I no longer have the time to fix and flip but I know a great deal about the entire process from many angles.  I have financed deals, I am currently an owner of residential and commercial properties, a Florida licensed real estate agent, a licensed CPA, and a qualified intermediary for 1031 exchanges.  Additionally, immediately after graduating law school I worked with a Jacksonville real estate law firm handling thousands of real estate Closings.  Probably, the most valuable addition though is that I am a native to the area because I have close friends and grew up with people that now own AC, plumbing, electrical, roofing, building contractors, as well as marble and granite businesses and they are invaluable in the fix and flip business.  Further, I also own a majority interest in a construction container company (big cans to throwaway construction debri-rolloff's) that serves the greater Jacksonville area.   So I have many resources but I do not have the time to find the properties but if you can fill that void, I can fill most others as well as share with you my connections and knowledge.  I certainly do not know everything but I do have many things I can pass along to you even if we do not do anything financially together.  I am still happy to be an advisor to you, without charge, as I enjoy helping people with your additude.  That quality is becoming scarce which is unfortunate. Please feel free to call me and let's discuss in more detail.  I hope to hear from you soon.

you actually have to use all the proceeds, not just all the profits.  @Dave Foster is the intermediary I would call to get all the answers

I have 6 separate properties in Jacksonville Florida that are all currently rented and the total gross rent is $5,265 per month with net monthly profit being around 4,000 a month. All properties are being sold as a package deal and I am looking for a quick close.

Recourse debt means you personally guaranteed it and the lender can come after your personal assets in the event of a default and in a Non-Recourse loan, it is the exact opposite.

Just as a follow up, you would still need to use all the proceeds from your house you sold by paying down the loan you assume or closing costs that chip away enough to avoid having any boot,

In my opinion under the scenario you presented yes you absolutely can roll that 125,000 into the situation you described above.  A mortgage is a mortgage.  The issues is not whether it is recourse or not as it has no bearing on whether or not you met the 1031 exchange requirements.     So based on what you described above, in my opinion, you absolutely qualify for  a 1031 Exchange

I am a little confused at the facts but if you collect money at closing it does not blow the exchange, you just need to pay tax on the portion taken out.  It is not an all or nothing deal with a 1031 exchange.  You can do a partial exchange.  Any monies taken out or not utilized in an exchange is taxed as a gain as well as any deprecation recapture to the extent their is gain and depreciation recapture.  Does that help?

@Dave Foster might be able to elaborate or have a different perspective.  It is always good to have at least two different expert opinions before making a decision.  Best of luck!

I have never had the pleasure of meeting @Bill Exeter personally but I have only heard good things about him as well.