All Forum Posts by: Richard Chang

@Dave Foster

"The best way to accomplish this is to close on all of your replacements during the 45 day window so that on day 46 your list consists of only those properties you have already closed on."

Thank you Dave, but trying to buy 5-7 properties in 45 days is a big challenge. Don't think this makes sense for me. Ideally, I would want to buy properties over a much longer period but it's not possible in a 1031.

Best, Rich

@Lee G.

Hi, care to share what you wound up doing ? Starbucks going for even less at  4.7 - 5.5 cap now and some with only NN terms too.

Thanks, Rich 

@Dave Foster

Thank you Dave.

It would seem that if I were to go the multiple 5-7 SFH purchase route then

the  200% Rule would be appropriate since the  standard 3 Property Rule is for buying 1 - 3 replacement properties.

So, I would have to look into identifying and purchasing properties up to 2 times the Sale price. In practice, I would have to find/identify maybe 10-15 properties in 45 days and then close on them "one at a time" within the 45 day + 135 days ( 180 total ) as long as I exceed the Sales Price and less than 2x Sales Price ?

I think some Exchangers would look into Bulk Property purchases that another investor is getting out of ? But I'm not sure I like buying someone else portfolio.

Thanks again, Rich

Hi all experts ! @Bill Exeter @david foster

I am considering doing a 1031 Exchanging into 5 or more SFH's. What if I want to sell one and buy another in the future ( without taking cash ) ? Is that allowed ? Do I have to have another partial 1031 for each transaction.

If this is not allowed, then I may consider a single Commercial property instead.

Your thoughts ?

Thanks, Rich

Hi all,

I will need to get my CPA Accountant involved ASAP. I don't know if he is knowledgeable on 1031 Exchange issues but I will ask him.

Thanks, Rich

@Dave Foster

Thank you very much Dave !

Best, Rich

Hi all,

Can the experts lend a hand in what to watch out for when picking a company to handle the exchange ?

1. Should the company be in the same state for the purchasing side to understand any relevant laws and local issues ?

2. How to avoid issues with company mishandling of funds ( liability ) ?

3. What guidelines should be used in selecting the company ?

4. If the company screws up then my 1031 Exchange is disqualified and then would be taxable ?

Thanks, Rich

Hi all,

I have a duplex investment property for sale that needs some remodeling costs with proceeds going into a 1031 Exchange.

I do NOT want to pay all these costs out of pocket as I will NOT receive any cash at sale to reimburse my costs.

Given that I have an existing 200K loan on this property and I want to create a 25K HELOC loan, then would the 25K loan be added to the 200k for a total of 225K going into the 1031 ?

I have NOT applied for the Home Equity Line of Credit yet. Can I even apply for one for an investment property ?

Regards, Rich

Hi,

It looks like in California, a long term tenant ( > 1 year ) is required to give a 

60 day notice.

http://www.dca.ca.gov/publications/landlordbook/moving-out.shtml

Is this the case ?

LA Guy

Hi,

I am working with a  Compliance consultant who specializes in this and will help me deal with the City Inspectors to make the necessary changes.

Don't believe an attorney is necessary since this is a "Zoning Use" issue.

Thanks, R