All Forum Posts by: Kathy G.

I invested as a sophisticated investor, although I have no professional accreditations. It was not an inheritance. This was in 2019. The asset was sold a couple years later and the operator gave all investors the option to exchange into a new acquisition or liquidate. The 1031 exchange was done as a group irrespective of, and including the SDIRA status, as a tenant-in-common. I recently discovered that the 2nd property was a 506(c) offering, which I was unaware of and did not qualify for. I never received a new PPM or operating agreement. No due diligence for investor qualification was done at the time of the exchange, just a ballot to elect to do the exchange. So, currently I'm in this 2nd 506(c) syndication and ultimately would like to exit. 

Can a non-accredited investor in an already established SDIRA, within a 506(b) multi-family syndication, do a 1031 exchange to another syndicated property (with same operators), if the new 506(c) offering required investors to be accredited, and the investor is not?  Is it possible for the investor to exit this deal at a later date? What, if any, are the ramifications if the operators did no due diligence to make sure investors needed to be accredited?  Just to complicate things further, a capital call has been issued. 

I understand that thought process, however if you had purchased a modestly priced home at 2.99% 2 years ago, with 20% down your fixed mortgage payment would likely be less than comparable rentals now. If you add in a small side gig home based business, you can take deductions.. and at any time you can take out a HELOC to reinvest, if and when you are ready to do so. You could also convert your home, with the low interest rate, to a long term hold rental in the future, adding another rental to your portfolio.