All Forum Posts by: Brad Bass

I'm wondering if I can use the proceeds of a 1031 exchange to buy out a business partner on properties I already partly own. I want to sell a property I fully own and use the proceeds to do this. We are currently 50/50 partners on the other properties, but the ownership is structured in that some are in an LLC and some are under our personal names as tenants in common. I would have a real estate lawyer worry about the details, but at this point I'm wondering if this is something that can be done, or if there are other alternatives that may be equally beneficial in deferring capital gains? Better yet, if you have experience doing something similar I would love to hear about how it all worked!

I'm currently under contract for a 5 unit building and have hit a bit of a snag.  One of the previous owners split the units into their own parcels, which classifies them as "condominiums".  However, I am purchasing the building in its entirety and there is no existing condo association.  The units have never actually been sold individually and the previous deed has all 5 units listed on it and there are no individual unit deeds associated with any of the units.  

Since these are "condos", the bank is saying that we will need to order 5 appraisals, 5 inspections, have to pay higher interest rates, etc.  Despite the parcels being split up, it is virtually no different than a standard 5 unit complex.  I still have to insure it as a 5 unit building in its entirety, it will be one deed and title transfer, etc.  

Are there any grounds for justifying/convincing the bank to treat this as a 5 unit apartment building as is the case for all intensive purposes?