Wholesaler · Beverly Hills, CA · Member since 2016 · 14 posts · 0 votes
I Just sold a property that I owned for 5 years for 400K and have 2 replacement properties identified.
Property A, I have been in escrow for the the last which had title problems and is nearly resolved (at purchase price of 600k) and property B which I am also in escrow for 300k and must close next week. I am planning to close escrow on "B" and refinance it to pull some money out to buy "A" ( and since I may be short in cash bring on a silent partner on board).
Eventually, I like to sell "B", and buy out my partner on"A", so would have "A" for myself.
is this doable? what are the pros and cons? Provided I follow all the timelines and hold property "A" as joint tenants with my partner?
1031 Exchange Qualified Intermediary · San Diego, CA · Member since 2008 · 1k+ posts · 1k+ votes
10y
Hi Darius,
Yes, you could buy property B and then refinance the property to generate additional cash to complete the acquisition of Property A. Property A could be acquired with a co-investor through a tenant-in-common ownership structure. You can complete another 1031 Exchange when you are ready to sell Property B and 1031 Exchange by acquiring your co-owner's TIC interest in property A.
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