All Forum Posts by: Sabrina Martinez

Thank you!

So my assumption with a 1031 exchange is that if you have a primary residence and you sell it before your two year mark, I thought you could just roll any equity into your next primary as a 1031 to avoid capital gains, but now I’m hearing that you would be taxed for capital gains if you sell your primary residence before 2 years no matter if you roll your equity into another property or not. Can someone please help clarify all this a bit for me?

All liens, taxes, HOA, judgments against the property are paid at closing. Your offer to the customer must cover all of this. It's important to ask a seller about not only mortgages but other potential liens against the property. The title company will pull this information but if you can get a head start it may save you time on a bad deal.

If the offer cannot cover this you could explore the short sale route but coming from someone who managed them for several years it's unlikely it will be approved. It's highly regulated and a default borrower is going to need to provide documents to support the offer, including proof of funds from the buyer, an estimated HUD and some banks require the home to be listed on the MLS.