1031 Exchange Deal in New York

[Jesse Imes]

Hello! My buddy in Buffalo, NY is doing a 1031 exchange and may run into a potential issue which could happen to myself in the future as well. The house he sold was paid off and in his LLC. The current deal is for a 4plex and he cannot get a mortgage in his LLC. He has to get one in his name. So my question is can you still do a 1031 exchange if the house you sold is in your LLC and the house you are buying is in your name?

Thank you!

Jesse

[Dan Schwartz]

@Thomas N. a 1031 exchange is a federal process, since its driven by the IRS code. You can use a qualified intermediary that is based anywhere. There is a fairly-recent thread that showed how unregulated the business is, and how easily one can fall into subpar hands.

Unless you are set on personally sitting across the table from your QI, there is no need to limit yourself to NY-based QIs. Fees average close to $1000 with most firms. Some for less, some for more.