Real Estate Syndicates for 1031 Exchange

[Leonard Weiner]

Working through my identification period on my 1031 exchange. I have until February 3rd to identify. I am leaning heavy towards investing in a commercial real estate or multi family syndicate. I've run across a couple that do them FNRP. But wondering if you anyone has any other companies or sponsors that are able to accommodate 1031 exchanges through TIC.

My investment would be over a Million.

Thanks

[Dave Foster]

@Leonard Weiner, Syndicates set up as TICs in full are like hen's teeth. The LP structure is much conducive to General partner waterfalls and varying classes of investors with different returns.  These syndications would have been set up using rev proc 2002-22 as their model.  

However, There are some LP syndications out there who will sell to you a piece of the real estate owned by the LP so you become a TIC with the LP. This does not make the syndication a TIC syndication. It makes it an LP syndication that is a tenant in common with another investor (you).

If the syndication is working with their own funding they can generally do this if they choose.  But most that I've seen will not consider it unless the investor is bringing $500K + to the investment (your amount would conceivably make it worth their while).  

From your perspective it would allow you to invest with a syndicator offering LP returns but you are a tic to the LP.  So it qualifies as a replacement for the 1031.

You just have to ask each syndicator if they can or want to accommodate you as a tic to the LP.