1031 exchange experience

[Jonathan Douglas]

I have a 2bd/2ba condo with one car garage in San Diego, CA that is worth $330k. I am interested in doing a 1031 exchange for a multi family property that is worth about 680k. The owner of the property welcomes 1031 exchanges, but I do not have any idea what I am doing. Is there anyone here who has experience?

[Dave Foster]

@Jonathan Douglas, The 1031 for you is going to start with the closing of your sale.  The process for you is the same as always - market sell select and purchase.  But you must use the service of .a qualified intermediary to document the process and manage the 1031 process for you.  They must be in place prior to the closing of your sale.

The fact that the seller "welcomes 1031 exchanges" could be indicating that he may be considering doing one on his sale.  Or he might just be knowledgable of the process.  Either way this gives you some very interesting possibilities.  You cannot take title to the new property until the old property sells.  So a seller willing to give you a flexible closing date on your purchase until you sell you can get your old property sold is a very good thing for you.  This could let you go under contract with him but relieve the pressure of having to sell your property too quickly.

If he is considering his own 1031 exchange then you can also benefit by being his best friend and giving him a flexible closing date for your purchase/his sale that starts his 1031 exchange.  I'm sure he would love the opportunity to shop for his replacement without having so much pressure of the short timelines of the 1031.

If both of you are wanting to 1031 your respective sales You can extend your purchase of his property so you can sell yours.  And then you can further delay your purchase of his while he locates his replacement.  

Some very good possibilities for you.