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Updated over 8 years ago on . Most recent reply presented by

Account Closed
  • Flipper/Rehabber
  • Dallas Tx
25
Votes |
64
Posts

Can you something like a 1031, but to purchase notes?

Account Closed
  • Flipper/Rehabber
  • Dallas Tx
Posted

I have a solid rental portfolio of houses here in Austin, but the cashflow is minimal compared to what I can get in multi-family or in the mid west. additionally, I'm looking at purchasing non-performing notes and turning any of the foreclosed properties into rentals.

Are there any strategies for selling off the houses, either in bulk or individually, to minimize the tax burden for when I reuse that capital to purchase non-performing notes? I know there are a lot of disqualifications such as non-like properties (SFR into notes) and the fact that my company would own both assets, but what about rolling the capital into a solo 401k, Self directed accounts, etc? Is there another product I am overlooking?

Thanks for the advice.

Most Popular Reply

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4,180
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Justin Windham
  • Banker
  • Nationwide
1,419
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4,180
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Justin Windham
  • Banker
  • Nationwide
Replied

@Account Closed

A Solo 401k may be a good option for your retirement funds if you are self-employed with no full time employees. Keep in mind that any existing assets you own could not be sold to the 401k because of the prohibited transaction rules.

  • Justin Windham
  • Loading replies...