All Forum Posts by: Robert Hetsler

I do but you have to email me outside of bigger pockets as they will not Allow me to post the name but I am a native Floridian so If you would tell me generally what you are looking for I will get you with the right person 

yes it is possible but I need to know more facts.  I actually spoke on the issue of TICs in LA at a real estate conference towards the end of last year.  You can see on this

@Dave Foster is correct.  I  have never had someone break a deal over or utilize the failure to include the assignability as a malicious bargaining chip.  I have heard of it happening but never first hand so must first instinct is that you will be fine.  However, in an abundance of caution, I would certainly look to the QI you have in place for some more involved guidance. 

yes. It is something that must be started before closing but I personally have done them up to the day before but that's never the favorable option.  However,  it must be done prior to closing on the initial property sale because after closing has occurred it is not reversible.

@Dave Foster   Is absolutely correct. The only thing that I would add to his response is to keep in mind in that in a 1031 exchange, the capital gain calculation is reversed such that the IRS looks at every dollar taken out first as gain plus ( Federal and State level)  along with any pro rata share of depreciation recapture and then basis.  Alternatively, when a 1031 is not an issue you think about it as receiving your basis first in your gain only after and so I believe that's what David was saying at the bottom of his post but I just wanted to strengthen it up a little bit.  Bottom line is that he is correct that you must be careful that you don't take so much out that you loose all the benefit of the tax deferral. Best of luck to you 

if you're receiving 14 1/2% return on your cash, I'm not so sure that I'd be interested in doing  an exchange as you're letting the property go, unless there's some imminent long term capital provement you're aware of, but many of the facts included in your post are really not applicable to an exchange. Just remember the basIce that the property or properties that you purchase (combined) must be of equal or greater value than the property that you are selling and that the mortgage (only debt associated  with the relinquished property specifically) must be of equal or greater value as well.  Alternatively, you can pay down a mortgage by adding independent funds outside of the transaction. 

But based on the rate  of return you are receiving already, I would not necessarily be anxious to sell something, unless, of course, their are facts with which I'm not aware of that you did not share within the post.   I hope that helps because when I buy a property I am usually aiming for 9 to 12% cash on cash return so 14.5% is fantastic, in my humble opinion 

I am involved in and around that same situation day every day either as representing the buyer engaged in a 1031 or as the Qualified Intermediary or I am the buyer myself so I am all to familiar.  I have a lot of contacts in most states and there are always failsafes to get you/your client past the 45 days rule.  Bottom line, is that yes I personally help but it is a longer discussion that I can write.   However, you are one of many people I talk to in this situation everyday but also being an agent I am often on the same side as you so there are dozens of opportunities all the time.  call me if you would like and we can discuss.  I am pretty sure there are other people that will respond that will have solutions as well.  I hope to hear from you soon. 

yes but they frown on any recommendations being listed within the forum so if you email me directly, I will be happy to send. Important thing is to remember to only insure contents and if it is a condo or townhouse make sure you know exactly what is covered under the HOA's policy because I have seen them start to get a little technical over the years, but insurance companies are famous for that (usually the shell) and then if property is personally held in your name to have an umbrella policy and the person who carries you homeowners might have a solution but I have 7 rental properties in Duval county and I use same guy who I have found over the years to be reasonable.

The final thing that I would add to this post is that, and only because it's happened to me personally, my father-in-law and I have seen it happen to many people while working for attorneys in law school, is secure and keep any and inspection reports, including copies of the ones that the insurance company does as part of its onboarding process, as well as any from prior owner, if that is even a possibility. I have been denied claims many times when something doesn't meet the definition of "suddenly and without warning".  They can either be your worst enemy or your best friend should you have a water damage claim especially living in Florida if a hurricane runs through.

if I understand your question, the answer is that you cannot engage in 1031 exchange successfully in a property you already own. The HELOC, assuming the property has been converted to investment property, would be treated as any other loan such that the replacement property should have a loan of equal or greater value to get the full 1031 exchange tax deferral benefit. Anything you are short, you would pay the applicable taxes on so it is not an all or nothing situation. Also, you can always reduce he mortgage by bringing cash from any other source to the table. I hope that helps

I think there are a few of us that practice in that area.  Most important thing is to interview multiple companies before making a decision