All Forum Posts by: Joe Vesey

1031 exchanges have been interesting to me, although, outside of a DST, they still require active management.

I received an invitation from a well regarded real estate developer to 1031 exchange into an acquisition they are doing. This is made possible by them setting up a Tenants In Common (TIC) structure.

Has anyone done this before? Looking forward to hearing your experience.

Yes, this is fairly common. There are some potential downsides to a TIC, but they can be an effective solution for the right situation. Send me a note if you'd like to discuss.

0 Votes

Denver, Colorado

Quote from @Fabiola Noel:

Would I be able to use 1031 exchange to buy shares of a property as an investor as well?

Depends on the structure of the deal. If you are able to purchase as a "tenant in common" then that would work for a 1031. Partnership interests are not considered like kind in a 1031 exchange.

1 Vote

Orlando, Florida

You can definitely have multiple 1031 exchanges in a single year (I am assuming these are on DIFFERENT investment properties). Yes, you can use proceeds from multiple exchanges and buy into a single replacement property (WATCH the timing though - as as soon as you close on your first relinquished property then you are on the clock).

1 Vote

Orlando, Florida

Quote from @Srinivas Reddy:

Thanks Bill and Brad. Definitely something to chew on. Even annuities sound better than having to deal with real estate rentals. We are currently barely breaking even on the rental as it is an old building and needs a lot of maintenance. I was hoping to defer capital gains and somehow convert it into income!

We are set on LA (Glendale area) because of family. Getting a multi-family home with ADUs expansion capability is another option I was looking at to boost income. If we sell our current home where we live in and pay off the remaining mortgage on the rental we will have $2m in cash available only for rental though (because of 1031).

You can definitely defer the taxes and convert the proceeds into income, but I am not aware of any that will return 8-9% cash on cash AND also work for an exchange. Send me a note if you'd like to discuss.

1 Vote

Los Angeles County, California

No, the taxpayer needs to remain consistent "how you sell is how you have to buy."

0 Votes

Orlando, Florida

Quote from @Marni Blank:

Hi there,

I'm selling a single family home in upstate NY (owned by an LLC that is in turn owned by myself and my sister). We are also part owners in a small commercial property (also structured as an LLC) also based in NY. That LLC is owned by my sister, myself and our father. We have an opportunity to buy out our father's shares of the commercial property LLC.

Is it allowed to do a 1031 exchange from one LLC purchasing part ownership in another LLC?

Thanks!

I think you will run into a related party issue rather than an LLC issue in regards to the 1031 exchange. @Dave Foster can provide additional guidance.

0 Votes

Upstate New York, New York

Quote from @Alex P.:

Thanks for the feedback Greg Scott and Natalie Bender. Sorry for not clarifying in the original post. The proceeds are currently with the QI.

I'm referencing what is referred to as the "disregarded entity exception" or "Same Taxpayer" rule.

https://www.1031.us/using-disregarded-entities-like-kind-exc...

https://www.firstexchange.com/vesting-title-1031-exchange

It would appear there's precedence for treating a single member LLC that's a disregarded entity for tax purposes the same as the individual in taking title to replacement property in a 1031 exchange. Does anyone have any experience doing this in a 1031 exchange?

Yes, as long as the LLC is a single member LLC that is disregarded (does not file it's own tax return) then the taxpayer is the individual and the taxes are filed using their SS#. This is done all the time in 1031 exchanges.

1 Vote

Quote from @Eileen Tefft:

I need to place 1M in cash and at least 650 in debt to satisy my 1031. I'm in week 3 of 6 for the id time period. I have a trailing collateral lien attached to my 1031 so the replacement property can not be a syndication, but can be a TIC if the other TIC member agrees to the collateral lien. I just want a passive investment and would partner with a strong operator. I'm a strong borrower so can likely buy up to 4M. I'm in the car wash business currently, but am a serial commercial investor and any commercial investment that makes sense and is ready to close soon is good. Let me know.

Hi Eileen,

I assist accredited 1031 exchangers into passive investments. Please let me know if you'd like to have a discussion to see if we may be able to help. Thanks!
Joe

0 Votes

All Forum Posts by: Joe Vesey

Joe Vesey has started 0 posts and replied 62 times.

Post: An alternative to Quest Trust Co, now known as Inspira?

Post: Options for cash only passive RE investments

Post: 1031 Into Passive Investment Through TIC?

Post: Are two 1031 exchanges allowed in the same year?

Post: Are two 1031 exchanges allowed in the same year?

Post: Need at least $15,000 a month on $2 million investment (1031 exchange conversion)

Post: Can you use different names on the titles using a 1031

Post: 1031 exchange question involving LLC's

Post: Taking title as individual instead of Single-Member LLC in 1031 exchange

Post: Looking to find a replacement property for my 1M 1031