All Forum Posts by: Moshe S.

Got it, thanks for the clarification. The LLC is just me and my wife that owned the initial property so that wouldn't be an issue here. Gonna go read up more on TICs, thanks

@Dave Foster thanks so much for that clear response.  I didn't realize that about syndications.  '

So far, all of our investments have been our own deals and we haven't invested in outside deals.  We were thinking about this now because it's hard to find good deals in our price range, so thought it might be easier to put it into a bigger deal but sounds like that's not such an option. 

@Bill B., it's probably irrelevant because of Dave's point, but curious to understand what you're saying. If it's in an LLC and the LLC sells it, then the LLC can still 1031 it, correct? So why the need to dissolve it beforehand?

In a 1031 exchange, does the replacement property need to be more valuable than the total sale price of the deal I sold (including other investors), or just my individual portion of the investment?

Here’s why I’m asking:

Say we sell a short-term rental (STR) for $700K, with $150K in equity we want to 1031. I'd like to put it into a large deal as a limited partner (LP). My concern is whether I'd then be locked into only larger deals in the future.

Example Scenario:

• - I sell a property for $700K, walking away with $150K.
• - I invest that $150K as an LP in a syndication deal.
• - The syndication sells later for $5M, and my share grows to $200K.
• - I want to 1031 exchange again.

Question:
Does my next deal have to be larger than $5M (the overall deal size) or just larger than my share of the equity in that deal - meaning, if 200k was 20% ownership then it has to be more than $1M (20% of sales price)? Because if I'm trapped going larger than $5M in the future, I'd probably look for something smaller that I can control now rather than always having to use it in a syndication