All Forum Posts by: Account Closed

Hi Tony!  This may be an obvious statement but you do realize you are selling each properties individually, right?  So each of the 8 will do an exchange, starting at the close of escrow on each sale.   So your timing and replacement requirements will be on 8 escrows.  You can move all the gain from the 8 in to one property but the timing will be tricky to coordinate 8 sale closings into 1 replacement closing.  Am I understanding correctly you think its a total gain of $125k?

DSTs could be an option as mentioned by Darrin, but the minimum on a 1031 is $100k,you must be an accredited investor and anyone in the business less than 5 years may not understand and properly educate you on the risks involved in DSTs.  They are a very sophisticated investment.  If you go that route, you should speak with several reps who sell these as they all have different inventory and different industry knowledge. 

Your strategy may be a bit complex for BP posts given the sale of 8 properties.....very tricky.  

You could just look for other properties to identify, since the condo will not work.  Send me a PM if you want to talk about some options.  If you are still in escrow, your 45 days hasn't started yet and you still have time to find other replacements.

I will be there - keep me in the loop on future events.  I'm happy to help coordinate spaces as well.  Any time you want to all hear a talk about 1031 exchanges I can attempt to bore you to death :)

Have you thought about Bend, Oregon?  Send me a message and I can give you the 411

Hi Ben!  Like anything involving holding of funds, your client should do his own due diligence and you should refer several to him if you are going to refer any. He should call each one and get a feel for how they do business by asking them all the same set of questions.  Some good questions for him to ask each potential company are:

- how long have you been in business

- what is your fee (be specific on the number of properties involved and if it's forward, reverse, etc)

- where is your operations staff located (ie where will be funds be)

- what type of account will my funds be held in?  Is it segregated (only my funds in the account)

- do you have an attorney on staff that reviews exchange docs and keeps them current 

- what is the typical time for your staff to complete an exchange ( you want to get a feel for if they are understaffed and can they get the work done on your time frame)

- how many exchanges do you do a month

- what is your errors and omissions insurance through, can I get a copy

- what is the amount of your fidelity bond - for each occurrence

- what protections are in place to prevent wire fraud

- will my funds be used by the company for outside investments (goes back to the type of account funds are held in)

- who will be my contact during the exchange (goes to customer service, you want one contact who you can reach by telephone)

Investors should keep in mind that it is their money they are placing with a QI to hold for a short period of time and be sure they feel comfortable with the company they choose to perform this role.  If a QI can't or doesn't want to answer questions, move on to another.