1031 Exchange into a wholesale assignable contract closing?

[Buddy Holmes]

I have a wholesale deal that I would like to close with 1031 exchange funds.

In the past the QI has wanted the closing docs and I am sue this one will be the same.

Does the wholesalers fees or funds give any problem to the QI approval?

Cheers,

Buddy 

[Dave Foster]

@Buddy Holmes, Hmmm sounds like it's going to be between you and the wholesaler.  They get a check and you have to make sure they put the HVAC in.  If they don't you won't have recourse since everything's on the settlement statement.

You could have a check cut directly to the HVAC contractor and put on the settlement statement as a purchase concession.  As long as the amount is less than 10% of the purchase price of the property and as long as it is for something that would normally be considered to be part of the house (roof, hvac, etc) then I've seen that fly.  It's a relatively untested area.