1031 Exchange , how to find my next deal????

[Alex Trejo]

I’m looking for some advise . I have 2 duplexes I’m looking to sell and roll into something bigger . 8-16 unit min. I have about $100k in equity and $100k savings I’m looking to put down on my next investment. My question is, how do I find my next property. Iv been looking for over a year now for my next investment and no luck. Either properties are way to expensive , or they sell so fast that the seller would be better off taking someone else offer instead of mine because I need to sell my properties before I can close on theirs. Any suggestions how to find and structure a deal like this?

[Dave Foster]

@Alex Trejo, in a sellers market like today in the MF sector there's really only three ways to make that 1031 work for you.

1.  Just sell and pray - No guts no glory.  Start the 1031 and hope that something pops up in your 45 day identification window.  If it doesn't then the 1031 dies and you pay the tax.  There's no penalty for starting and not finishing a 1031.  

2. It's a seller's market.  So use your power as a seller and set up contracts with a sales date contingent on  you finding a suitable replacement and going into contract on it.

3. A reverse exchange might work for you as well These are more expensive and a little more complicated.  But they allow you to fully control your new property before you sell your old one thus eliminating some of the risk of a sellers market.