All Forum Posts by: Alex Olson

Hey Chris - great idea! Have you already closed on the sale with not qualified intermediary? If so you are too late in this one. In the future make sure you have a qualified intermediary take the funds before closing to defer capital gains tax.

You will want to make sure you have a qualified intermediary before you close to hold your funds! What market are you looking to exchange in to?

@Andrew Brown Yes you can. Just need to make sure you are buying for same or higher price as your property you are selling sells for. You can exchange any kind of real estate investment in to any other kind of real estate investment in to any state in the US. It is a federal tax code so it is state agnostic. There are other rules and guidelines I can help you with. What market are you looking to get in to? Cash flowing market or some other coast market? 

@Lain McCanless I work with 1031 exchange buyers as our primary focus. Let me know if you want to discuss options. 

@Nikki Closser I have tagged @Dave Foster on this as he is a QI and an expert in 1031 exchanges. He can point you in the right direction. Happy connecting!

@Anthony Wright There is nothing within the IRS guidelines that say you can not refinance within any time of your 1031 exchange. Make sure you have a really good lender, really good CPA, and really good attorney. If you have good REAL ESTATE support for the above, you should be OK that you dotted all of your Is and crossed all of your Ts. 

This is a great topic @whitney! Good idea. There needs to be more TICs available for 1031 Exchange investors!

A 1031 exchange will give you the best leverage and is the best tool to exponentially expand your real estate portfolio. Take 4 units and turning it in to 16 or 16 into 50 is common here in KC. Refis will not allow you to scale this quickly.

It would really depend on location and year built and then I can recommend the correct pm. 

@Ana Vhan If you are selling a property worth $1m, your next property needs to be worth $1m or more. You will need to put all of the equity from the sale in to the next deal. You can also put more money into the deal if you prefer. 

Most people choose to maximize their leverage of the equity gained. In your example, if you have $400,000 in cash left over from the sale, you could leverage that to make a $1,600,000 purchase, depending on your location (in KC this is quite common) and 16+ units. You can exchange in and out of any state. 1031 Exchange is federal tax code. 

Make sure that a qualified intermediary holds your funds when the sale closes and that you never touch the proceeds. Otherwise, you will not be able to defer taxes and would not be eligible for a 1031 exchange. Hope that helps!