All Forum Posts by: Robert Hetsler

the rule is that, assuming you are the one selling he property, you would need to take on a mortgage of equal or greater value on the new property.  An exception does exist if you bring cash to the transaction on the replacement property side unrelated to the transaction (i.e. from your savings, retirement or any other means really). 

This prevents a gain deferral on those investors that like to leverage property by pulling out all the profits prior to the sale which, without this rule in place, would allow a savvy investor to pull out the gains through a refinance and avoid the taxes.

If you are going to owner finance the property you are selling, there are more details than this, but best case scenario is that you have the ability to fund that all up front and you bring the seller financed amount to closing such that you are the seller and the bank essentially and then all the funds are rolled up into the exchange and held with your intermediary and utilized on the next property.  Again, there are certainly more details and options but hopefully that will get you started.

sorry, the zip code above should not have been 32245.  It should have been 32246

I will add something a little different as a native of the area. I invest in quite a bit of commercial real-estate and residential real estate and the key is knowing where to purchase to get the best and most consistent cash flow. I also ways shoot for a 9-12% return on a cash purchase of a townhouse or condo to rent and do it in certain areas because the vacancy is so low. However, in Arlington where you are referring to, I purchased a three bedroom condo for 21K and put another 8K into it for a total of around 30K and I have it rented for $595 before paying all HOA and insurance etc.. so the cap rate is good. I got lucky though and I hope she will continue to stay. However, in the Jacksonville market, there are two main places to be that will always result in low to no vacancy and that is near the town center (32245/32256) zip code and at the Neptune, Atlantic, Jacksonville or Ponte Vedra Beach. Those areas will be on the lower end of the cap rate but usually higher quality tenants that translates into time savings and less vacancy. Bottom line is no matter where you are, assuming you have cash to offer you can get good deals. I was in a bidding war no so long ago and one at 88K when the asking price was 120,000. I subsequently found Out that I was the lowest offer by 10,000 and that was because I was purchasing cash. Also, like most places, spend money in the kitchens and bathroom and my next door neighbor happens to own a granite, Marble and ceramic tile shop so I get fairly good deals on making those areas look good and that help a lot with ratability. I hope this offers some assistance and feel free to reach out to me as I am a native of Jacksonville so I can offer a lot of helpful hint about the market.

yes it can be done but there might be personal property in the gas station that might need to be allocated out.  I would try to structure the contact in such a  way as to keep the purchase price of the real property associated with the replacement property of equal or greater value than the property you are selling.  That is just one thing you can do to help yourself but the general answer is yes for 1031 purposes the answer is yes when looking at the big picture, assuming you are purchasing the real property or a long term lease on the station.  If there is a lot of inventory for sale in the gas station that is where you have to have a reasonable and articulate method by which you arrived at your allocation

I am investor first and foremost and completely understand that traditional financing has changed quite a bit over the  past couple of months. That is why we do not think of ourselves as hard money lender's brother private lenders because our terms are much closer in line with traditional financing as opposed to Hardmoney lending. However, we look for a return of our proceeds and 120 days give or take

I am a native of the area (st. johns county) so I know a few.  I can give you a few names if you want them but you would need to email me directly as I don't think they allow referrals within the posts as I recommended before and they were removed.

we loan money to real estate investors looking to borrow 50% or less LOAN to Value on a non recourse loan but we own the property until the time it is sold and we are paid off and our rates are no documents, no credit checks, you pay all the closing cots and rates are between 8-12%. But all deals are subject to change

I am asked that question nearly everyday and Dave Foster is correct in my personal opinion as that is the same general response. The only other recommendation I give is to go ahead and have a lender lined up so you can pull from the LOC right after the closing on replacement property, Alternatively, you could engage in a full refinance (although much more costly) right after you have closed on the replacement property. With little effort, you could do a few there are lenders I have seen that specialize in this so they work with you to have everything ready to go right away such that you are signing the LOC documents a day or two after closing on the replacement property. Good Luck!

I have been doing exchanges for 13 years and David Foster is correct, in my opinion

I have never had any personal experience there but I have had clients make money in the area.  I think you can make money in most markets under the right set of circumstances.  I would post a similar add in the market specific to this area