Tired of paying your hard-earned tax dollars to Uncle Sam when you sell your real estate investment? Join the Innovative Realty team and Dave Foster of The 1031 Investor and to learn how you can grow your portfolio without paying a penny in taxes! We’re excited to announce our joint webinar on Thursday, November 5th at 11:00am. Join us and learn you how can defer the payment of the tax that is normally due on a sale when you sell business or investment real estate using the 1031 Exchange. Participate for your chance to win free Starbucks or Dunkin Donuts coffee cards!

Thanks so much, @Dave Foster, good advice! We should have no trouble selling our relinquished properties, but we're still trying to identify a good replacement property. Evaluating multi's is a new educational experience :)

Hi @Aly W.. The market is going to determine your best order of action. You can go into contract for your new property at any time. But you cannot take title to the new property before the old property closes. But in a strong sellers market it might pay to get your new property under contract before your old property closes - or even before you get your old properties under contract or list them. As long as you feel confident that you'll get them sold before you have to close on your new property. You'll be able to buy yourselves some extra time since your moving into commercial or larger MF. Those types of properties typically have longer due diligence and contract periods. So if you put an LOI on one you'll have some extra time to get your old properties sold. I see that we're connected. Feel free to reach out via pm if you'd like to discuss further.

How to Invest Using the 1031 Exchange w/ Dave Foster & InnovativeHow to Invest Using the 1031 Exchange w/ Dave Foster & Innovative

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Aly W.

Investor
Middletown, NJ

Aly W.

Investor
Middletown, NJ

Replied November 18, 2020 14:18

Hi Dave,

My husband and I are looking for a small apartment complex in central Florida and would sell/exchange 2 condos in Ft. Lauderdale for the down payment. We're in the early stages, with nothing identified yet, but I just want to be sure of the sequence of events. We've done a 1031 Exchange before, one condo for another, and it was down to the wire with the timing.

Should we identify and get under contract with an LOI for the apartment, and then sell the condos? I know if we sell the condos first, we only have 45 days to identify the replacement property.

With a seller's market, we don't anticipate too much difficulty selling the condos, so we don't want to do that first and then run out of time to identify the replacement. And selling 2 at the same time, doesn't mean they'll actually close at the same time. Several moving parts.

Thanks for any suggestions or links to your interviews!

Aly W.

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