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All Forum Posts by: Liz Knight

Liz Knight has started 1 posts and replied 2 times.

Post: 1031 Exchange into a building to be held with partners?

Liz KnightPosted
  • Investor
  • Chicago, IL
  • Posts 2
  • Votes 0

Thank you both!

Post: 1031 Exchange into a building to be held with partners?

Liz KnightPosted
  • Investor
  • Chicago, IL
  • Posts 2
  • Votes 0

I have two partners who both have their properties on the market. One of them, Partner A, needs to do a 1031 exchange into the new property (which we haven't identified yet). What's the best way to qualify for a loan on the new property? How should we structure the entity to hold the new property? We need asset protection, but also like-kind treatment for Partner A and flexibility in our exit strategies. 

I'm already pre-qualified for a loan, to partner with these other partners I'd be able to afford a larger building than on my own. 

Should Partner A put her property into a Land Trust now before the sale so that she can purchase her share of the building in the same entity as the one that sold?

What are your thoughts on this?