All Forum Posts by: Account Closed

You need to watch the prices here for something like that.  It depends on who you talk to, but the prices have  REALLY climbed the past few years so it's a question of your own opinion on how much higher they will go.  A lot of people have the idea of buying here and retiring someday - renting until they do - so the market is pretty saturated already with people with that same idea.  I would do very careful due diligence and buy something already established as a vacation rental that has historical numbers for you to see.  Otherwise you will be gambling.  The winters can be quite slow (and we have a long winter) even for the hotels.  They make a lot of money off the summer to carry the year.  So another factor - is an empty rental in winter temperatures.  There are also several new hotels either recently completed or about to complete adding a lot of rooms, so only time will tell if Bend really needed that much supply for tourists.  A lot of locals don't think so .....

I think your rep who is showing you that opportunity should be able to show you sample K1s or give you this information on the deal you are looking at.  If they are not or an not ... find someone else.  

That's too bad he ended up in that situation, could have been avoided with a 3rd backup property that was available to close should the first two not work.  It's really important that sellers have a strategy in place before they list/close and for sure by the time their 45 day clock starts.  Something about that clock makes time speed up!

This is a really good question to post ... I hope a lot of people respond.  I see in this market, people selling and moving into either lower value markets or passive investments.  It's a cycle that seems to repeat.  

Your debt is roughly 43%....you want your purchase(s) to average out to at least that as well.  You can go up but not down on debt.  You can combine an all cash purchase with a leveraged one. That’s where strategy comes into play in looking at the best way for you and your situation to utilize a 1031.  

What about setting up a trust ... that goes to you when they pass.  The trust holds title to the property or properties ... I'm not a lawyer but I'd imagine they have to title the property they are selling to the trust before they sell it.  

@davefoster has good points.  I think you are hung up on the word 'trade' when maybe he just used the wrong word.  The seller probably just wants to do a 1031 exchange and doing research prior to escrow on what the replacement property will be is actually very smart.  Like Dave said, give him contingencies to find replacement property with delays and he may feel better about accepting  your offer.  If you really want it, being a buyer that is flexible will be a plus.

If you are coming out of real estate - do a 1031 exchange - buy investments that qualify in the exchange.  There are similar options to what you mentioned that you CAN 1031 into. Keep looking.  Your 1031 Exchange Accommodator can give you some suggestions.  REITs and other real estate options that do NOT work for a 1031 are good for funds that come from something else that you want to put in real estate. But you can also use those funds to buy ... real estate .. then 1031 out of it when it appreciates.  The 1031 is a very effective tool for real estate investors.  When it's not being used, the question should be asked why not.  

If you plan to sell, consider doing a 1031 exchange.  Then purchase real estate that qualifies (lots of options there.)  Realtyvest/crowdfunding typically does not qualify for a 1031 ... there are other options.  Keep looking around if you go that route, or as your 1031 exchange accommodator for suggestions.

I just wanted to chime in on DSTs ... you will be hard pressed to find much online. They are only for accredited investors, only sold through the broker dealer community and there is a lot of mis-information out there.. While anyone with the proper securities licensing can sell them, your typical financial advisor doesn't know real estate. If you want to find out more about a DST, ask your 1031 Exchange Accommodator - also called QI (qualified intermediary) for a referral. They work with them daily and can give you a referral. Do not google these .... unless you believe everything you read on the top of the google page (paid ads). :)