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1031, TIC Agreement, Debt sharing agreement
Greetings. I have been searching the forums and still have questions regarding my situation.
1) I own two one bedroom apartments in Minn that are in *my name with my wife* that we are in the process of selling to do a 1031 exchange.
2) I have identified a 24 unit apartment building in MO that I have under contract. This property will be purchased with two partners. One will own 50% of the property and the other about 10%.
3) I live in a community property state.
From my understanding of 1031 rules I need to exchange the property from and into the same taxpayer id. Since I live in a community property state I can set up a disregarded LLC in MO to exchange my 1031 into and hold title to the new property. The new property will have to be held as a TIC and need a TIC agreement between all partners. I have also read that I will need a debt sharing agreement, but have not really seen an example of what is included in that (anyone have pointers?)
The question for you all:
1) Any advice on what should be in the TIC agreement (anyone have example agreements?)
2) How will this situation impact my commercial loan and is there anything I need to start working on earlier in the loan process so this isn't an issue at closing?
3) I plan to create a single LLC in a year or two and transfer ownership into that single LLC to make it easier to refi/sell in the future. Any words or advice for how to do that or issues to be aware of?
Any other thoughts about this situation is greatly appreciated. I have been trying to piece together bits of information online and in the forums and hope this post might be helpful to others in a similar situation.