Exchange from Personal Ownership to Multiple Owners/Partnership

[Brian Slater]

Hi all,

I am going through the research now on doing a 1031 exchange from a single family home where I have seen decent appreciation (and also was my first SFR, so I put more into it than I should have!). I will have a decent amount of proceeds from this sale and I would like to invest into a multifamily deal. I have discussed the idea with a friend who is also in the REI space and we are considering a partnership on the new multifamily unit. I know 1031 exchanges must be same taxpayer to same taxpayer, and it seems like so far the only viable option I have found is via a Tenant in Common structure.

My worry is that the TIC doesn't provide creditor and/or liability protection considering that the multifamily unit would be in my name and my partner's name.

Are there any solutions I am missing here, or is this just a side effect of the 1031?  

I am a ways away from making any sort of move here, I am just trying to get all of my ducks in a row before I consider the sale and do my due diligence on finding the MF purchase.  

Thanks,

Brian

[Leslie Pappas]

Hi @Brian Slater, if you're an accredited investor you have another option. You might consider investment into DSTs (Delaware Statutory Trusts). They are hands-off, institutional grade real estate investments, and they allow you the option to diversify. You can buy into institutional grade $50-125M projects with as little as $100,000. Professionals with decades of experience and very impressive track records do all the heavy lifting for you. You get potential cash flow, tax shelter and appreciation. Loans are non-recourse. Feel free to connect with me here on BP, happy to help. - Leslie