All Forum Posts by: AS Chow

Sorry if asked before, but this just came up in conversation and I think I know the answer, but not 100%.

If for example I get 700k from a building (A) that I want to use 1031 Exchange and buy a building (b) that costs 2m, and I get a mortgage for 1.3m can I then sell another building (c) next year for 500k and take that money to pay off part of the 1.3m mortgage on building (b) ?

Assume the 700k and 500k is all Cap Gains and those are the total proceeds I receive from building A & C.  

(I'm a small owner in several buildings that are getting sold and I don't really have any control of, or know exactly when they're going to be sold.)

Thanks ! 

So I've gone through the entire 1031 Exchange Forum and there are very few posts on DST Companies. I am a complete novice at the entire Real Estate game. (I inherited partial ownership in several buildings more than 20 years ago.)

I'm not even sure who the big DST companies are...

I'd like to hear if anyone has invested in one, and would they recommend it ?  What have been your actual returns ?

I worry about fee's and don't really see it mentioned very often. 

I have large Capital Gains coming (1-2m) and would like to at least defer them so I can spread them out over a number of years.  I live in California and the state tax is high.

(I don't have any children to pass it down to, and I can't take it with me, so I'm not concerned about defering it forever.)

Also I have ZERO desire to become a Landlord of any kind. I'd just pay the Cap Gains if being a Landlord was the only option. DST companies might not give the best return but I'll be ok with smaller returns.

Oh and if anyone knows when it says 7-10 years holding period ... what does that mean exactly ? I'd prefer knowing the year, so I could choose different lengths.  

Thanks ! 

My brother and I own 25% each of a 12 unit building in SF.  Our sister runs the building and owns 50% and she wants to buy us out - she wants to keep the building, and I want to buy a house.

She got an appraisal report for 6.0m 

GRM on the report is 19.0

Indicated Overall Capitalization Rate of 3.1%

There was another appraisal done a year ago from a different firm at 5.4m with a 18 GRM.

I know there are more factors in pricing a building... 

I don't really know if I should take the buyout? Or ask for a second or third appraisal?  I want to be fair, and I think she does as well. We won't be paying a commission for the internal transaction.  

Hello BP ! 

I'm a lifelong renter in Northern California.  Am about to retire with a huge inheritance.  Only about half the money will be Cap Gains free though because it was part of an Estate and Taxed.  About half the money will be 100% all Cap Gains due to long length of ownership and depreciation.  (I'm assuming cost basis will be zero as I'm still waiting for reply from accountant.)  I do not really have a say in getting bought out because I'm a small owner in many properties, and I don't want to be difficult to the family.

I do NOT want to become a Landlord in any shape way or form, but I am going to have a ton of money that I can put into 1031 Exchange to avoid Cap Gains from the Feds and the state of CA which is very high.  

I am intrigued by the idea of buying a Condo/Hotel and being able to stay there for a week or two a year, and get some ROI. I know there are limited operators in Vegas. (MGM, Vdara, Trump and a few more.) My understanding is that HOA's are quite high, and the split is around 50/50. The only other thing I get is that a higher floor is more likely to get rented. (Also, I want to be near the Strip for restaurants - I do not golf.)

If anyone has experiences owning a condo in one of those hotels ... feel free to describe your experiences.  I haven't really been able to find good resources ... 

Are people breaking even on these ? What's the frequency of rental ? Are you getting nickle and dimed on top of HOA for other things ?

I know there are 1031 Exchange companies I could buy a small piece of different properties, but I know less about that than I do staying in Vegas.  And getting locked in for 7-10 years does not appeal to me at all.