Advantages of Buying from a 1031?

[Travelle Mason]

A property I am interested, the sellers are trying to do a 1031 exchange. 

1) Are there any potential advantages of buying from such a seller? 

2) Any additional leverage I may have or angles I can approach?

Thanks in advance. 

[Hannah Krebs]

@Travelle Mason

Interesting question! Basically, what they are trying to do with a 1031 exchange is purchase another property with the proceeds from the sale and avoid paying all tax on the sale. They are in a time crunch with a 1031 exchange: they have a limited amount of time to name the properties they are interested in and then another limited amount of time to close (6 months if memory serves). Based on the information, being flexible with the close may benefit you. They may have a property in mind they would like to buy and would like to close quickly so as not to miss out on that property. They may not even have a single lead, so they may desire to have a longer close in order to buy time.

Depending on the type of property (SFH, Multi, etc), they may be looking to owner occupy the next property. If so, they may not have a place lined to live once their house sells. In that case offering them a short-term lease and allowing them to rent the place until they complete their 1031 may work out.

Best of luck to you!