All Forum Posts by: Account Closed

Sent you a message.

Yes, it is just up to the seller.  He may not see it the same way that you do .... if he's a seasoned RE investor, he knows how to work the angles.  He offered a MLO for a reason is maybe the point to take away.  Sounds to me like he wants his cake and eat it too :) ... .sell it and get the equity ... but not really sell it.  lol.  Just be careful is my input for whatever it is worth.  

Hi @Neal Collins... Once a seller sells a property and does not do a 1031, they lose that opportunity. So yes we are looking at this in different ways. Most Real Estate Investors like to preserve their option to 1031 in the future - time and time again. Then upon their death, they pass their real estate portfolio to their heirs with a step up in basis. My only input on what you state is make sure your clients are aware that while they may be spreading out their tax burden - and you could use the word defer - they are not doing the same thing as what is accomplished with the 1031 exchange strategy. In this situation of this thread, Alex stated his seller didn't want to pay his huge tax bill and therefore offered a MLO.  Alex really has to encourage his seller to be informed about his options - which is talking to a QI about a contract sale with a 1031 and go look for replacement property, or do a MLO.  I could be wrong, but I'm guessing the seller is not going to spread his tax burden out on this one with a contract sale.  It's worth a try for sure however!  

The best scenario would be the seller does a 1031 and buys another real estate investment that meets his needs so Alex can buy this property.  There are ways to do a 1031 with seller financing, I am not a QI so that is better left answered by people like @davidfoster .  There are also many options for replacement properties that I am sure could work for this seller.  

Sell the rental and buy farm land.....real estate for real estate like Dave said.  

He stated the seller doesn’t want to pay capital gains taxes.  The only way to defer capital gains tax is by doing a 1031 exchange, which he can in a seller financed deal.  The seller should be speaking with his 1031 QI.  If he realizes his tax liability on the seller financed deal he could pull out of the deal.  Just because he holds the note doesn't mean anything changes on his tax on his gain, it is just handled differently.    

You are in MI correct?  You can use one close to you as well and that way you can go in and meet with them in person.  There are no geographical limits with 1031 companies.  

The seller will need to talk to a 1031 Exchange Accommodator even with seller financing.  You’ll want to make sure he/she does that so your desk doesn’t blow up.  I can give some recommendations if you put him in touch with me.  Good luck!

I would be curious to hear what you call syndication just to make sure we are all talking about the same thing.  There are investments that sound like what you re discribing that and investor can 1031 in and out of.

It’s not the best venue for speakers actually.....very hard to hear a presenter with other people coming and going in the same space.  

Did anyone ever discuss a morning meeting?  Just throwing it out there ....

This is a complicated question for BP posts.  I would think your LLLC agreement dictates what you can invest in  without their approval?  

There are deals you can 1031 exchange into, but you won’t hear about them on a BP post due to securities regulations.