All Forum Posts by: Jennifer Roberts

Being from a title state brings some comfort to my transactions. But when I recently looked at Georgia I found its a no title state. I learned that transactions go through an attorney instead of a title company but am wondering what other red flags or protections I should be looking for when it comes to closing on a property? I also thought I saw mention of being represented at closing? Is this by an attorney? Or agent? Looking to gather some info. Thanks so much.

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I would love to hear from anyone that invests/invested out of state in new construction. The properties of interest I see listed on the mls and I also got the lot number from the agent. However, they haven't provided a floor plan. I just inquired today and will definitely see it before consideration.

My question is before I invest or hop in a plane to fly out, what are some of the things you’d look for?

They say it will be done in November but whats the guarantee?

Thanks in advance!

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Originally posted by @Dave Foster:

@Jennifer Roberts, No statutory holding period. But property that qualifies for 1031 treatment is property you purchased with the intent of holding for productive use. So you have to be able to clear that hurdle of demonstrating your intent. And many things including the length of time owned can be used to demonstrate that intent.

Most folks feel comfortable at anything more than a year. But there could always be circumstances where a hold of less than or more than a year might be appropriate.

Crystal clear. Thank you!

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Originally posted by @Ashish Acharya:

Looking like you are almost flipping it. 1031 does not apply to flipping (ordinary income). If you can treat this as an investment property, you can plan 1031 and defend it If you are going to hold the replacement property. This had to be planned with your CPA. There are many open questions.

Thanks Ashish. Yes, not flipping but protecting money saved on 1031 in lieu of not finding the right investment.

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Originally posted by @Michael Plante:

IRS Code Section 1031 outlines the many different rules regarding 1031 exchanges. However, the code does not specifically state an exact amount of time exchangors must hold onto their replacement assets. What the code does state, though, is that an exchanged property that’s held primarily for sale does not qualify as a like-kind exchange. In other words, investors can’t sell one investment property, complete a 1031 exchange in order to defer capital gains, and then fix-and-flip the replacement asset.

Replacement assets must be acquired with the intent of holding them for investment properties. The IRS stated in a 2009 ruling that exchangors shall realize no gain or loss when exchanging one property that’s held for use in a trade, business or as an investment when that property is exchanged for another like-kind asset used for the exact same purpose.¹

Moreover, the IRS addresses what constitutes a “holding requirement” in the same ruling. Again, there’s no concrete length of time listed but rather language that addresses the exchangor’s intent:

“...An exchange of property will not be eligible for deferral of gain or loss under Section 1031 if the replacement property is determined to be held by the taxpayer for immediate sale, disposition, or for some other non-qualifying reason. The determination of whether the taxpayer has acquired replacement property for investment purposes is determined by examining the taxpayer’s intent and the surrounding facts and circumstances at the time such property is acquired.”Hello

This is perfect. I wasn't intending on flipping it, but rather protecting the money lost on cap gains. I can hold for a period of time but it of course needs to outweigh the cost of holding it, etc. Thank you!

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I had a question that my QI couldn't really answer. Before I bug my poor CPA again, I'm wondering about the collective consensus of this group. How long do I need to keep a newly purchased property that I exchange in a1031 before relisting? Has anyone had experience with this? Another way to say it, if I find a place that I can park my money that doesn't have the best return, how long do I need to wait before relisting?

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Originally posted by @Alan DeRossett:

i live in Thousand Oaks California, and this area is called the 101 BioTech Corridor, our area has new Bio-Tech companies who all were funded by Weslake Village Bio Partners 500 million this year. Over 400 new PHDs will be hired most of which will need H1B1 visas to come to live and work, Very few Californians are without work and we need Foreign workers to grow. The city of Thousand Oaks has controlled growth excellently City budget is 100% transparent and online for all to see everyone's salary. It issued many new Building permits all following our 2045 General Plan issued and we will also see lots of lower-priced ($50,000) prefab Boxable folding homes installed for people only earning sub $25 per hour. I'm looking to install 100 Doors, We have zero existing vacancies now and 100% of all Covid rent problems were covered by Governor Newsome as long as landlords communicated with Tenants rents were all paid by the State to make us all whole. https://www.boxabl.com/reserve...

Hi Alan, I’m here too and know the area well. Curious, where would you foresee something like this going here? Unless you’re saying you already have them here??

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If you had the purchasing power a decent chunk of cash would you opt to purchase multiple single family properties or one larger one or something else? Expecting all the numbers to work out of course. I’m thinking about problems financing in the long run when just starting out and trying to leverage.

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@Dave Foster yes. The time of posting I had 55 days. As of july 9, 45. I have an intermediary so I’m gathering all my info. Excellent advice! My brain definitely hurts from info overload!!

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All Forum Posts by: Jennifer Roberts

Jennifer Roberts has started 13 posts and replied 37 times.

Post: Georgia is a no title state. Can someone please explain?

Post: Georgia is a no title state. Can someone please explain?

Post: Out of state new construction

Post: When can you relist a newly purchased property in a1031 exchange?

Post: When can you relist a newly purchased property in a1031 exchange?

Post: When can you relist a newly purchased property in a1031 exchange?

Post: When can you relist a newly purchased property in a1031 exchange?

Post: Long-term Outlook For California

Post: One or many properties?

Post: Long distance real estate without the visit