All Forum Posts by: Kyle Kadish

The greatest push back from clients and prospects in a DST is the unknown timing of an exit. Fits well when exiting any operation, but not the best for the hands on investor. Many individuals use as a Plan B in the identification process; upon exit, they might find something else to exchange into.

A few states offer a subscription to multi-state games (Powerball & MegaMillions). A buyer never needs to worry about not getting to the store to buy a ticket when the jackpot gets this big.

@Tanisha Bryan a few points missing to provide true advice. What is the basis, how long have the properties been held, what is your NOI, etc. With an exchange, you need to match the debt (or pay the cash equivalent). You would pay off the banks at closing of sale, but need new debt with the replacement properties. Most investors use exchanges to go up in quality, as @Miguel Obramowitz suggested.

@Eric Schlegel glad the market has helped build your wealth. One item to consider when you do sell your primary residence is the exclusion allowance in IRC 121. As a married couple, you can earn 500k gain on your home; any amount over $500k becomes taxable as a capital gain.

Is IRC 1033 out of the question?  Contact the insurance company for a settlement and use the funds when you wish for property, either primary residence or investment. 

Some investors with thoughts of a correction lock in gains, and use principles with IRC 453 (installment sale) to redeploy the capital beyond the 180-day timeline required in a 1031 exchange. A couple clients hope to purchase when the market is at a discount to what it sold for. This strategy is often marketed as a Deferred Sales Trust.

@Sandy G. Rules of the exchange are about intent and use of property, not quality or type. As long as property on each side of the exchange are used for investment, you are in the clear.

Originally posted by :

You are free to exchange any kind or investment real estate in any location in the United States for investment real estate any where else in the US (or a couple of select territories). 

The phrase like-kind refers to the use of property - is the intent of ownership investment? You are familiar with SFH market, but you can redeploy your capital into retail, multis, office space, even royalties and water rights. There are also turn key portfolios that can be used in an exchange to help match every dollar.

I would be locking in gains from Seattle and finding areas with greater upside. 

@Bob Waters It really is the Wild West and an unregulated field. The Federation of Exchange Accommodators (1031.org) offers the CES designation, but a requirement is experience as a QI.

The smaller banks are more flexible with lending policies, where you might actually meet the underwriters.  Find a community bank in the area of the new property who might do it out. 

Don't forget about other lending channels who will typically provide up to 80% LTV on properties over $750k.