All Forum Posts by: J Nicholas Gross

thanks for the considerate reply

I can tell I'm really over my head so I've sent you more details for a deeper dive

appreciate you taking time to reply, that's very considerate

I was going to put the property in the LLC anyway for the normal reasons - I don't think there's any harm in that for now, I'll keep consulting for the main point for what parts might look like a "sale" of the property.

@Dave Foster you are a genius at this I can see

I have a similar issue, so a followup to your answer: what if I don't own the entirety of the LLC that owns the 1031 exchange parcel property and is going to have the improvements? IOW, even a small portion is owned by an unrelated third party. Would I be able to do the improvements through the LLC, and then exchange into them with another 1031 asset?

This is important to me since construction is super expensive here in CA, and I have a bunch of other 1031 properties I could sell to convert into the newly constructed property to reduce the loan burden after.  Many thanks in advance.

Our family trust did a 1031 exchange 5 years ago, one of the assets we acquired was a parcel. We want to develop the lot now and build a short term rental, preferably owned by an LLC. I read the answers here and don't see anything problematic if we simply transfer the lot to the new LLC, and sla as the Trust is the only owner of the LLC. But what if we want to sell interests in the LLC after its formed to help subsidize the build? Is that going to be considered partially redeeming the exchanged property? If so, any suggestions on what alternatives we should consider? We have invested a considerable amount already into the to-be-built plans, architects, engineers, etc. Suggestions welcomed.

Our family trust did a 1031 exchange 5 years ago, one of the assets we acquired was a parcel. We want to develop the lot now and build a short term rental, preferably owned by an LLC. I read the answers here and don't see anything problematic if we simply transfer the lot to the new LLC, and sla as the Trust is the only owner of the LLC.  But what if we want to sell interests in the LLC after its formed to help subsidize the build?  Is that going to be considered partially redeeming the exchanged property? If so, any suggestions on what alternatives we should consider? We have invested a considerable amount already into the to-be-built plans, architects, engineers, etc.  Suggestions welcomed.