1031 using 1031crowdfunding.com

[Vishal Taylor]

I am selling a house in FL for around 650K (bought for 450K). Tired of condo commandos :-)

My options:

1) Sell it outright, pay taxes (around 50K) & put the money in REIT or S&P 500

2) Do 1031 exchange. I like what 1031crowdfunding.com is offering. Has anybody used them? Would love any feedback for them.

Let me know what you think is the best option :-)

[Dave Foster]

@Vishal Taylor, Run a quick spread sheet and see how long an investment into your REIT or index fund would take to generate just the amount of tax you'll pay immediately. Many times it takes years of good returns to equal the $50K you lose immediately. Of course the amount of debt you have and how much cash that leaves you is an important fact also.

A 1031 into a DST has two advantages in your case.

1. You get to defer that $50K of tax and use the deferred tax to generate return for yourself.

2. The DST will absorb your debt and the debt becomes non-recourse to you personally.