All Forum Posts by: Account Closed

Hi everyone,

I was wondering if anyone had a recommendation for a good REI-friendly/knowledgeable business lawyer in the Daytona Beach or Volusia County Area. I need one who can advise on and structure business entities for property holding and management and who is fluent in asset and liability protection.

Thank you!

Laurence

Hi @Gerald Demers, @Bill Exeter, and @Dave Foster,

Thank you all for taking the time to respond to my question.  I apologize about the ambiguity of my post (my first real one on BP!); I will be more detailed when writing on the forums.

Currently, the LLC owns the quad free and clear. We have listed it and it is now in contract and scheduled to close in August. We would like to structure a Forward 1031 Exchange and have not yet identified a replacement property. However, since the original property has not sold yet, we do not have bank statements or other documentation of the cash for the down payment. I would like to start speaking to lenders to determine 1) whether the LLC will even be considered for a mortgage for a new property without the cash for the down payment at this time, and 2) if the LLC can obtain the mortgage directly and acquire title to the replacement property at closing (without the need to purchase it personally, then execute a quit claim deed to transfer ownership to the company after the closing, which I'm not sure can be done while staying within the legal requirements of a 1031 exchange). Finally, if a lender will not extend a mortgage loan to the LLC, what steps would we take to complete the 1031 exchange and still finance the next purchase?

Thank you!

Laurence

Hi BP,

So, I'm in a situation where I would like some input on how to proceed.  I purchased a quad cash back in 2012 and now it doesn't meet my long-term investment strategy - it's not in the best location.  I want to pull out and focus on more desirable neighborhoods and larger multifamilies.  I am now in contract to sell it and when it closes, I stand to make some very considerable gains that I want to defer the CG taxes on so I can keep growing.  I want to do a 1031x and have the leverage of a mortgage to secure a larger property.

My question is would I be able to get a mortgage on a larger property with my down payment tied up in the existing property until the closing, while keeping title to the new property within the LLC? I'm sure I will have to personally guarantee the loan, and will be able to contribute more cash if needed, e.g., reserves. The LLC has been open for four years and I have additional W-2 income to help qualify. Which banks or lenders would help in this situation and what is the best approach? I am in Florida.