All Forum Posts by: Account Closed

Hi James.  I think you asked for some opinions ... I would say if you have $100,000 of cash in that property and are making 7.5%, that is actually not that bad if it is also appreciating in value (which in the end will add to your total return).

In the meantime, look for what you want to 1031 exchange INTO and wait until you find something you like.  Then at that time, list it for sale  - rented - and you may find another investor would like the steady history on it and buy it with your tenant in it. 

You can go up to 200% of it's value - then on the debt (which you said you had none) - you can go up but not down so you could probably very easily add some debt.  You could buy two properties at $100,000 with some debt on each.  You have a few options ..... give me a call if you want to run through some scenarios on how the 1031 will work with each idea. 

Hi Steve, I have wondered the same thing.  We should start one!

Hi Chris.  To complete the exchange you will need to reinvest all your equity from the sale into the new property.  If you keep any cash out, you will pay tax on that 'boot'.

You can split the equity into more than one property and pair that with debt to diversify.  An exchange can be from one property into several.  Depending on how much equity you have and what you can qualify for, that might be something to think about.  

I can help you out on the 1031 ..... I am in Bend but cover Idaho as well.  

Amerititle might be good - let me see if I can get you a contact.  

Why do they need to move out before you list it?  You might find a buyer (investor) that wishes to have them stay - and they can perhaps sell the property to the tenants.  Or your tenants might decide to get their own financing and make you an offer.  More importantly, you can move on to the two properties that you have put in offers on and accomplish your goals with that equity you have tied up.   

To do a 1031 exchange, the lining up of the timing can be tricky.  The more simplified it can be the better.  You might reach out to a couple of QIs and decide who you want to work with so you at least have your 1031 lined up.  A good one can go over different senarios for you and help you brainstorm. 

Hi Grace.  You are doing a Reverse Exchange and buying before you sell correct? I can help you with that.  

This may not be related, but I want to suggest that when a buyer's agent contacts a listing agent for financials, the listing agent knows that the buyers agent has already prequalified this person.  So the comment that you might have better luck working with an agent is a valid one.  If you only knew the time agents spend responding to clients that turn into ghosts too .....

In terms of doing a 1031, it's always wise to have a strategy before you even list the property you are selling. The key I think is finding a good 'team' of professionals that you work with and trust. As a QI, realtors in the industry call me all the time and ask if I have a client that might be interested in ....... whatever they have. They'd rather sell it off market than put it on the MLS any day. So yes, they go to their connected contacts first. There is no law that Real Estate has to be publically listed for sale.

Hi Melissa.  With a 1031 Exchange, you can work with anyone in the country.  You obviously need a realtor and a title or escrow person in the location where you are selling, but from a 1031 exchange standpoint you can work with anyone anywhere.  You can do a title change on your NOLA property before you sell it or while it is rented if you want, that is fine.  But when you are in escrow and doing an exchange, you need to keep the legal entity (taxpayer) the same during the exchange.  So on the NC property, whoever owns it, does the exchange then buys a replacement property.  If you wanted to make a title change on the replacement property, you would do it afterwards.  If you need any help on the 1031 or have questions on the rules for either property, I cover the Pacific NW and Seattle area. 

What is the debt on the property you are coming out of? You will need to go with equal or more debt in order to qualify in the exchange so that may make a difference. You can go up in debt, but not down.

Where is the property you are selling?

There are plenty of good QIs out there including some good ones in Seattle.