All Forum Posts by: Joshua Wright

Call Lauren Speidel with Exeter. She’s great to work with.

You can exchange to two properties. Have 45 days from the closing of the property you sold to identify the replacement properties. Have to close within 180 days from closing of property sold. Just have to make sure you replace at least as much real estate as you sold. (There are some other special variations you can do, but doubt they’re necessary for you) Plenty of good QIs on here that can assist.

Brandon Hermreck Hi Brandon. Saw you were in Shawnee Mission. I’m based in Leawood. If you proceed with a 1031 and don’t want to manage property, you might consider checking out Delaware Statutory Trusts (DSTs) as an option. There are some qualifications, but they’re passive entities which hold managed institutional real estate and are 1031 exchange eligible. You get the income off the real estate as well as the depreciation. Get the benefits without the headaches. I’ve had a lot of these conversations with clients this year who own highly appreciated family farmland and are getting rid of it. And I agree with @dave foster, I’ve seen a number of cases where the income from the new real estate investment is actually far higher than the farmland.

@kurt mace The only NNN property you would have to be accredited to buy (that I know of) would be if it was inside a Delaware Statutory Trust (DST) which isn’t what you’re talking about.

If you qualify, you could use a Delaware Statutory Trust (DST) for the difference (the $125k you were talking about) left over after buying the property you’re lookin at. DSTs are passive, managed real estate that qualifies for 1031 exchange. Reach out if you have questions.

Absolutely @Evelyn Zanetti Happy to help. Reach out if you need anything! 

Sounds like you’ve got this in good hands. Assuming you meet the qualifications, you might check out Delaware Statutory Trusts (DST) as backup property for your 1031 exchange. DSTs are trusts that hold investment property and are 1031 exchange eligible. Great for folks who don’t want to manage real estate anymore and want to 1031, but also great for the “boot” you’re talking about. Work great in situations where you can’t get closed on the replacement property in time as well. Something to consider if you’re want to get completely hands off or have a backup plan.

I’m sure a QI will chime in on this, but I’ve typically seen $800-$1k per property for a normal exchange. Anything more intensive beyond a normal exchange can get more expensive.

Actually there are plenty of DSTs that are great at $50k. It’s below a usual minimum of $100k, but most quality DST sponsors will work with you. Quality has nothing to do with the minimum, but rather the sponsor. DSTs are simply a planning tool that could work in this situation. But of course there are plenty of other great options as well.

If you have $1m of net worth, you could qualify to do do a 1031 into a DST with the boot. That’s one option. The $1500 for the exchange seems high to me. Talk to Lauren Speidel for another cost estimate on that. Hope that helps. Reach out with questions.