Financing Advice

[Jeff Adema]

Would love anyone's feedback on the following scenario:

My wife and I own a few single family home rentals. We plan on selling one and doing a 1031 for about $70K equity from one of those homes and utilizing that to fund our undivided interest in a TIC. We are in the process of collaborating on a joint venture with a like minded individual to pool funds together to explore opportunities in the multi-family space.

Through conversations with local attorneys as well as professionals / investors on Bigger Pockets we've decided on having the TIC owned by 2 separate single member disregarded entity LLC's with a joint venture agreement dictating the arrangement between the 2 LLC's. As long as we abide by the 1031 rules we shouldn't have an issue deferring the gain.

My question / concern comes down to finding a lender who is comfortable in lending in such a scenario. Does anyone have any experience / success / tips in narrowing down the search for lenders who might be open to this?

Appreciate any thoughts you might have.

[Mark Nolan]

@Jeff Adema

Another option is to open a self-directed IRA and incorporate a TIC transactions alongside your IRA.

Also, you could form an LLC and pool your IRA along with your personal funds an other investors and then invest in real estate through the pooled LLC.