1031 exchange of a condo

[Michelle Pepe]

Hey guys! We have a property in costal NC and selling is just a death trap of taxes. I know and understand 1031 exchanges, but even after being an experienced realtor, I’ve never been involved in one. Can anyone more experienced point me in the right direction as to where to start?

I can 1031 a condo for a SFH or MFH right?

thanks!!!

[Sean Ross]

Quote from @Michelle Pepe:

Hey guys! We have a property in costal NC and selling is just a death trap of taxes. I know and understand 1031 exchanges, but even after being an experienced realtor, I’ve never been involved in one. Can anyone more experienced point me in the right direction as to where to start?

I can 1031 a condo for a SFH or MFH right?

thanks!!!

Yes, you absolutely can trade out of a condo and into a SFH or MFH, @Michelle Pepe. 

Where to Start With Your 1031:
1. Fact finding about 1031s, like you're doing now
2. Start looking for your replacement options early
3. Go under contract to sell
4. Pick a QI to work with; they should hold your hand through the rest.  

For first-timers, what normally causes the most heartburn is the rule that you have to formally identify what you want to buy within 45 days of your sale. 

I'll send you a PM; we have a lot of resources and guides for realtors specifically.  Also, one of my best officers is in NC, she's a Certified Exchange Specialist, and I'm sure she'd be happy to be a resource for you/your clients moving forward. 

(As an aside, I like the colorful phrase "death trap of taxes")

[Wyatt Wolff]

This guy ^^ @Sean Ross 1031s! 

That's a cool company name 

[Sean Ross]

Quote from @Wyatt Wolff:

This guy ^^ @Sean Ross 1031s! 

That's a cool company name 

Appreciate the good vibes, @Wyatt Wolff !

What kind of loans do you provide?  We can discuss further in a private feed if you'd prefer so we can keep this post discussion focused on Michelle's questions.

[Wyatt Wolff]

Quote from @Sean Ross:

Quote from @Wyatt Wolff:

This guy ^^ @Sean Ross 1031s! 

That's a cool company name 

Appreciate the good vibes, @Wyatt Wolff !

What kind of loans do you provide?  We can discuss further in a private feed if you'd prefer so we can keep this post discussion focused on Michelle's questions.

 Shot you a PM! 

[Dave Foster]

@Michelle Pepe, They may feel like a hoo doo voo doo kind of thing.  But a 1031 exchange is designed to free you from that death trap of taxes.  And it's actually pretty flexible (other than some timing and documentation issues).  

You can exchange any type of investment real estate for any other type of investment real estate anywhere in the country.  So location and type can be adjusted for whatever the market is speaking to you.

And, from the perspective of developing your real estate career, the knowledge of the power of a 1031 exchange that you have can be a huge marketing advantage for you when seeking listings.  Because, like you said, they are not known well in the realtor community.  But folks wanting to sell property perk right up when you introduce them to the possibility of selling without paying tax!!!!

I'll reach out via pm to get some information in your hands that will be valuable both to you and to your clients.